Worldwide IT spending to reach $2.7 trillion in 2020Staff Writer | August 30, 2016
Worldwide revenues for information technology products and services will grow from nearly $2.4 trillion in 2016 to more than $2.7 trillion in 2020.
Computers Healthcare will remain the fastest growing industry
Consumer purchases accounted for nearly a quarter of all IT revenues.
Among the trends in the forecast is the positive momentum displayed in big industries like financial services and manufacturing, where companies continue to invest in 3rd Platform solutions (e.g. cloud, mobility, and Big Data) as part of their digital transformation efforts.
The telecommunications industry is forecast to remain relatively sluggish, although spending levels are expected to gradually improve compared to the past several years.
Combined, these four industries (banking, discrete manufacturing, process manufacturing, and telecommunications, which are also the industries with the largest IT expenditures) will generate nearly a third of worldwide IT revenues throughout the forecast.
More than 45% of all IT spending worldwide will come from very large businesses.
Looking ahead, even the moderate growth forecast for the tablet market will be driven by commercial segments rather than consumer tablet sales.
Healthcare will remain the fastest growing industry with a five-year CAGR of 5.7% despite concerns that spending growth may have peaked. Banking, media, and professional services will also experience solid growth with CAGRs of 4.9% and combined revenues of more than $475 billion in 2020.
Elsewhere, gradual improvement is expected in the public sector, although government purchases of technology will continue to lag behind much of the private sector. Similarly, IT expenditures in the natural resources industry are forecast to recover as the price of oil rebounds from recent lows.
In terms of company size, more than 45% of all IT spending worldwide will come from very large businesses (more than 1,000 employees) while the small office category (the 70-plus million small businesses with 1-9 employees) will provide roughly one quarter of all IT spending throughout the forecast period.
Medium (100-499 employees) and large (500-999 employees) business will see the fastest growth in IT spending, each with a CAGR of 4.4%. ■