Inside ASI-AP

I posted previously about the Australian market and our market share estimates. In that post I highlighted a key part of our growth potential will come from Asia. I have some more facts now on the overall market opportunity with regard to general economic importance (the data is from CIA / IBIS World and was reproduced in the April 2008 edition of the Company Director journal published by AICD).

In terms of economic importance (based on GDP) - Western Europe is the largest of the world regions at 30.9%, followed by North America at 30.1% and then Asia (including India) at 25.4%. There is an expectation that by 2050 the Asia region will be the largest.

Within Asia itself - the size of the various economies of interest to us are - Australia 7%, NZ 1%, Malaysia 1.1%, Singapore 1.1%, India 7%, Hong Kong 1.6%; and the 2 big ones not currently on our target list being Japan 40.1% and China 27.1%.

Some interesting points to note here on these numbers generally. Firstly, Japan is almost twice the economic size of China, although the gap is closing fast. Secondly, India is the same economic size of Australia (this surprises many people!), although India is growing strongly and will be moving ahead quite noticeably in the coming years. Finally, Australia is clearly a more important economic member of Asia (7%) than a population member (just 0.6% of the total Asian population).

As for market potential for iMIS in Asia, and given that my assumptions on the Australian market are correct (see this post) that the total Australian market size is A$20m per year - puts NZ, Singapore, Malaysia and Hong Kong market sizes at A$3m per year each and India at A$20m per year. The combination of all of these markets including Australia provides us with a total market size of A$52m annually, or about 2.5 times the size of just the Australia market only. And note that does not include China or Japan (markets we have not formally committed to entering as of today).