Skip to main content

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.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es