Markets

• In the overall IT market, Loihde focuses on service markets, especially the market for new digital services, the data and AI market, and the cloud technology market.
• In the overall security market, Loihde operates in both the physical security market and the cyber security market, offering total security services that combine both segments.

With the growth of digitalisation, the secure development of systems and applications and comprehensive cyber security solutions are increasingly critical aspects of total security for companies. There is also an increased need for cyber security services since cybercrime is becoming increasingly professional and corporate IT environments are becoming increasingly complex, and this has increased the significance of e.g. identity and access management. Cyber security is also increasingly linked with the protection of the physical environment, including video surveillance, access control and locking solutions. According to our survey, almost one in two companies have merged their security organisations and are managing security as a whole.

The blurring of the boundary between the physical and digital worlds creates demand for companies like Loihde ‒ companies that have the ability to help their customers not only to develop new digital services and leverage data but also anticipate and solve the security threats related to them.

One of the major turning points in IT over the last few years has been the transition of companies’ systems and data from their own servers to the cloud. For the vast majority of organisations, cloud transformation is underway and cloud technology is being adopted at an accelerating pace. 

Below is a summary of the changes in Loihde’s operating environment: 

The effects of macroeconomic changes

Over the past year, global economic uncertainty and runaway inflation have had an impact on companies' willingness to invest. Customer demand for digital development has remained high, but in an uncertain market situation, development projects may be postponed to a later date. There is a wide variation between sectors, and demand for digital development has remained strong in sectors such as manufacturing, finance and energy. There is also variation between service areas, with very strong interest in areas such as data analytics and AI solutions. Therefore, we do not see this as a longer-term market change but believe that the digitalisation trend will continue to be strong despite the economic situation.

The security business is less affected by economic fluctuations, as there is no desire to compromise on security even in more difficult times. In addition, the uncertain geopolitical situation increases the awareness of and preparedness for cyber and other security threats. The slowdown in the construction sector has reduced the demand for locking solutions, which has increased price competition in other customer segments, not only in locking but also in security technology solutions, where Loihde's strong market position is primarily based on expertise and quality of service.

The competition for skilled employees has eased with the change in the IT market situation, but there is still competition for skilled professionals, particularly in certain service areas.