Analysts worsened their forecasts for the global IT market

IT spending this year will increase less than previously expected
(photo: CC0 Public Domain)

IDC lowered its forecast for global IT spending, citing a weakening global economy. Analysts now expect the IT market to grow by just 4.5% in 2023 to $3.25 trillion, while in October 2022. predicted growth of 6%.

“Since the fourth quarter of last year, we have seen clear and measurable signs of a modest reduction in IT spending in some areas,” commented analyst Stephen Minton. “The IT market has always shown resilience during economic downturns, unlike other business segments, but rising interest rates are now impacting capital expenditure.”

The IDC expert identifies as the most significant negative factor the situation in “consumer markets”, where IT spending is expected to fall by 2% this year. Thus, the segment may decline for the second year in a row, which is a huge change from the 18% growth in 2021.

“On the other hand, enterprise demand for cloud and digital transformation remains strong despite economic challenges,” adds Minton.

According to Gartner analysts, the volume of the global IT market in 2023 will reach 4.5 trillion dollars, which is 2.4% more compared to 2022, when there was a decrease of 0.2% (to 4.39 trillion dollars). Demand for IT products in 2023 will grow as businesses in conditions of economic instability find a way out in digital projects, analysts believe.

However, inflation has reduced the purchasing power of consumers in almost every country in the world. Many consumers are postponing the purchase of devices released in 2022 until next year. As a result, IT equipment sales in 2022 are down 10.6% to $722.18 billion. In 2023, a decrease is also expected, but less – by 5.1%, to $685.63 billion.

Hardware and software spending for in-house data centers remains high enough to support existing infrastructure, but new funds are being allocated to cloud deployments, which is reflected in a forecast of 9.3% growth in software purchases in 2023 Mr.

Gartner predicts that in 2023, global spending on communications services will remain almost at the level of a year ago, when it amounted to $1.42 trillion.

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