Worldwide IT spending is forecast to reach USD 2.7 trillion in 2020, led by financial services, manufacturing, and healthcare, growing at a CAGR of 3.3 p0ercent for the period, according to the latest report from IDC. Revenues are seen at USD 2.4 trillion in 2016. 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 (cloud, mobility, and big data) as part of their digital transformation efforts.
Combined, banking, discrete manufacturing, process manufacturing, and telecommunications, will generate nearly a third of worldwide IT revenues throughout the forecast. Consumer purchases accounted for nearly a quarter of all IT revenues in 2015, thanks to the ongoing smartphone explosion. But consumer spending for PCs, tablets, and smartphones has been weakening, which will have a dampening effect on the IT market overall.
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 percent. Banking, media, and professional services will also experience solid growth with CAGRs of 4.9 percent and combined revenues of more than USD 475 billion in 2020.
In terms of company size, 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 (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 percent.
Consumer-fixed broadband revenue will rise slightly, driven by increased adoption and usage of video on demand (VOD) services. Enterprise customers remain focused on driving down costs via policies for Wi-Fi offload and contracts optimizing the number of their providers for communications services and global WANs.