Pent-up demand for infrastructure upgrades, capacity and bandwidth investments, and overdue replacement cycles drive IT spending priorities in 2014
Framingham, MA – February 5, 2014 – According to the new International Data Corporation (IDC) Worldwide Black Book (Doc #246614), IT spending will be inhibited by the economic slowdown in emerging markets in 2014, in addition to an inevitable deceleration in the growth of smartphones and tablets. IDC has lowered its forecasts for IT market growth in Asia Pacific (including China), Central and Eastern Europe, the Middle East and Africa, driving down its forecast for Worldwide IT spending growth to 4.6% this year in constant currency terms (down from the previous forecast of 5%). With currency devaluation and inflation likely to inhibit business confidence in many emerging economies in the first half of this year, and with the explosive growth of mobile devices having begun to inevitably cool from the breakneck pace of the past 2-3 years, overall industry growth will dip slightly from last year’s pace of 4.8%.
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Infrastructure, Software and IT Services are Hot Spots
While overall industry growth has cooled, some areas of tech spending are heating up as businesses in mature economies including the US and Western Europe, begin to invest in overdue infrastructure upgrades and replacements. Spending on servers will increase by 3%, after last year’s decline of 4%, and storage spending will also grow by 3% this year (following a 0.5% decline in 2013). The PC market is showing tentative signs of stabilization, with improving commercial shipments in mature markets. The increased pace of hardware investment will have a positive effect on IT services revenue, which is forecasted to post growth of 4% this year (up from 3% in 2013). Enterprise software spending remains broadly strong, with growth still expected in the range of 6-7%. Excluding mobile phones, IT spending growth will actually accelerate in 2014 from 2.9% last year (excluding phones) to 3.4% this year.