Skip to main content

Worldwide IT Spending will Reach $2.4 Trillion in 2017

Do more, with the same or less budget, was a common information technology (IT) leadership theme last year. The more courageous and resourceful CIOs attempted to fulfill the demands from their line of business leader's expansive digital transformation agenda in 2016. Across all industries, IT procurement had evolved.

Exasperated by high expectations and limited resources, some CIOs chose to retire, a few simply resigned and numerous others were told their services were no longer required. Many of those CIOs that stayed had their responsibilities split with a new CTO or CDO executive. Meanwhile, IT vendors had to navigate this increasingly diverse buyer landscape.

IT Product & Service Market Development

Worldwide vendor revenues for IT products and services are forecast to reach nearly $2.4 trillion in 2017 -- that's an increase of about 3.5 percent over 2016. International Data Corporation (IDC) estimates that global IT spending will grow to nearly $2.65 trillion in 2020 -- at an compound annual growth rate (CAGR) of 3.3 percent during the forecast period.

Industry spending on IT products and services will continue to be led by financial services and manufacturing. Together, they will generate around 30 percent of all IT revenues, as they invest in technology to advance their digital business transformation efforts.

The telecommunications and professional services industries and the central government are also among the largest buyer groups. But the industries with the fastest spending growth are professional services, healthcare, and banking.

"Strong pockets of growth have emerged, such as investments by financial services firms and utilities in data analytics software, or IT services spending by telcos and banks. These industry-driven opportunities for IT vendors will continue to emerge, even as the global economy remains volatile," said Stephen Minton, vice president at IDC.

North America will be the largest market for IT products and services, generating more than 40 percent of all revenues throughout the forecast period. Western Europe will account for about 20 percent of worldwide IT revenues followed by Asia-Pacific (excluding Japan) at slightly less than 20 percent.

The fastest growing regions will be Latin America (5.3 percent CAGR) followed by Asia-Pacific (excluding Japan) and the United States (each with a 4.0 percent CAGR).

Outlook for IT Product & Service Spending

While IT services will be the largest category of spending in 2017 ($275 billion), software purchases will experience strong growth (7.9 percent CAGR) making it the largest category by 2020.

Business related services will also experience healthy growth over the forecast period (6.0 percent CAGR). However, once again, traditional IT hardware purchases will be nearly flat (0.5 percent CAGR).

More than 45 percent of all IT spending worldwide will come from very large businesses (more than 1,000 employees) while the small office category (businesses with 1-9 employees) will provide roughly one quarter of all IT spending throughout the forecast period.

Spending growth will be evenly spread with the medium (100-499 employees), large (500-999 employees) and very large business categories -- each segment experiencing a CAGR of 4.3 percent.

Popular posts from this blog

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Warehouse Robot Deployment Gains New Momentum

The retail and wholesale back-office infrastructure market is being transformed by technology. The warehousing industry has accelerated automation efforts due to the increased order volume and labor shortages driven by the global pandemic. In addition to technology solutions such as handheld devices with enhanced capabilities, autonomous, collaborative, and mobile robots are proving to be the fastest-growing productivity-enhancing solution in the warehouse workspace. Commercial Robotics Market Development According to the latest worldwide market study by ABI Research, global commercial robot revenue in warehouses will have a Compounded Annual Growth Rate (CAGR) of over 23 percent from 2021 to 2030 and exceed $51 billion by 2030. "Mobile robots are at the heart of the warehouse robotics market and account for most shipments and revenue. These robots, made up of Autonomous Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), are being used to move goods within the warehouse a

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g