At the disposal of journalists of Kommersant was report Bank of America Merrill Lynch (BofA) analysts. In their opinion, in the next few years, Yandex will occupy 60% of the entire search market in Russia, and its capitalization will grow by $ 1.4 billion. We’ll understand the reasons for the possible growth.
Most important: the law on the pre-installation of Russian applications
At the end of 2019, the President of Russia signed a law on the mandatory pre-installation of Russian applications on smartphones, computers, tablets and televisions with the Smart TV function.
According to BoFA analysts, the fact that all device manufacturers will be forced to install Russian applications will help Yandex to increase its share in the search market and overtake Google not only on Android, but also on iOS.
Now Yandex is inferior to the Google search engine on iOS devices (41.5% share), and slightly ahead of Android (55% share). According to the Bank of America forecast, by 2024, these numbers will rise to 56% and 57%, respectively. Given that the share of the Yandex search engine on desktops in Russia is 69%, the total market share will be 60%.
What else: smartphone market growth
A plus for Yandex should be the ongoing growth in the smartphone market in the country. By 2024, their penetration should reach the level of 54% of the population. For comparison, in 2015, 37.4% of the country’s inhabitants used smartphones.
Analysts expect the average annual growth rate of smartphone sales in Russia up to 2024 to be 3.2%. In 2024, up to 34.6 million devices will be sold – last year, sales were at the level of 30 million smartphones in the amount of 495 billion rubles.
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