Technology | Media | Telecommunications

Monday, September 30, 2019

ICT Revenue Growth will Reach $4.8 Trillion in 2023

Digital business growth continues to fuel the Global Networked Economy, which requires a corresponding investment in Information and Communications Technology (ICT) infrastructure. Despite the trade war between the United States and China, purchases of ICT systems and services will maintain steady growth over the next five years.

According to the latest worldwide market study by International Data Corporation (IDC), ICT spending on hardware, software, services, and telecommunications will achieve a compound annual growth rate (CAGR) of 3.8 percent over the 2019-2023 forecast period, reaching $4.8 trillion in 2023.

ICT Infrastructure Market Development

Digital transformation and the adoption of automation technologies will be driving ongoing investment in applications, analytics, middleware, and data management software -- as well as increasing demand for IT server and storage capacity.

Commercial purchases will account for nearly two-thirds of all ICT spending by 2023 -- that's up from 60.4 percent in 2018 and growing at a solid five-year CAGR of 5.1 percent.

Banking and discrete manufacturing will be the industries spending the most on ICT over the forecast period followed by professional services, which will also see the fastest growth in ICT spending, driven largely by service provider growth.

The media and consumer sectors will also continue to grow, as companies within these industries transform their business operations to offer new services and improve customer experiences.

While purchases for planned upgrades and refresh cycles will continue to be the largest driver of commercial ICT spending, new investments in the technologies and services that enable the digital transformation of business models, products and services, and organizations will be a significant source of spending.


IDC recently forecast worldwide digital transformation spending to reach $1.18 trillion in 2019.

However, consumer ICT spending will grow at a 1.5 percent CAGR, resulting in a gradual loss of share over the five-year forecast period. Consumer spending will be dominated by purchases of mobile telecom services and devices -- such as smartphones, notebook computers, and media tablets.

The United States will be the largest geographic market with ICT spending forecast to reach $1.66 trillion in 2023. Western Europe will be the second-largest region with $927 billion in ICT spending in 2023, followed by China at $618 billion. China will also be the fastest-growing region with a five-year CAGR of 6.1 percent.

"In the U.S., a favorable business climate and strong consumer confidence continue to buoy technology spending and innovative projects. Tech-intense areas such as the financial services sector and telecom industry are holding strong as they are committed to serving their demanding and evolving customers in new and innovative ways," said Jessica Goepfert, vice president at IDC.

Outlook for New ICT Applications Growth

Digital transformation is catching up in the Asia-Pacific region at an accelerated pace, and this will continue to drive significant investments in technologies in the next few years -- from hardware and services to applications.

The investments are driven by both government and enterprises in the region as they are understanding the value of what these new technologies bring to the overall operational activities.

It also harnesses the potential of a lot of initiatives being launched to make the workforce well versed in digital commerce. Upskilling the workforce is a top priority for leaders everywhere.