Home Cloud Computing Gartner Says Global IT Spending to Reach $3.7 Trillion in 2018

Gartner Says Global IT Spending to Reach $3.7 Trillion in 2018

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Gartner Says Global IT Spending to Reach $3.7 Trillion in 2018
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Analysts Discuss the Outlook for the Global IT Market During Gartner Symposium/ITxpo 2017, October 1-5, in Orlando

Worldwide IT spending is projected to total $3.7 trillion in 2018, an increase of 4.3 percent from 2017 estimated spending of $3.5 trillion, according to the latest forecast by Gartner, Inc.

Enterprise software and IT services continue to exhibit strong growth, with communications services continuing to drive the majority of spending. Software spending is projected to grow 8.5 percent in 2017, and it will grow another 9.4 percent in 2018 to total $387 billion (see Table 1). IT services spending is on pace to grow 4 percent in 2017 to reach $931 billion, and increase 5.3 percent in 2018 to reach $980 billion.

The devices segment is expected to exhibit growth for the first time in two years with an increase of 5.3 percent in 2017 and 5 percent in 2018. Increased average selling prices for premium phones in mature markets, partially due to the introduction of the iPhone 8 and 10, along with an underlying demand for PCs from businesses replacing their machines with Windows 10 PCs is driving the growth in this segment.

Table 1. Worldwide IT Spending Forecast (Billions of U.S. Dollars)

2017 Spending

2017 Growth (%)

2018 Spending

2018 Growth (%)

Data Center Systems

173

1.7

176

1.8

Enterprise Software

354

8.5

387

9.4

Devices

664

5.3

697

5.0

IT Services

931

4.0

980

5.3

Communications Services

1,387

0.9

1,417

2.2

Overall IT

3,508

3.3

3,658

4.3

Source: Gartner (October 2017)

Gartner analysts are discussing the emerging trends that are driving digital transformation this week during Gartner Symposium/ITxpo here through Thursday. While all IT spending segments are expected to experience growth in 2017, Gartner has identified 10 markets within these segments that will make up the most dynamic portion of the IT spending forecast in 2018.

“Looking at market opportunity — how profitable a market is, how big it is and how fast is it growing today and for the next five years — we have identified the top markets that companies should be looking to be part of in 2018,” said John-David Lovelock, research vice president at Gartner. “Global IT spending is showing little overall growth, as are traditional markets. These top 10 markets will be the key to remaining relevant and achieving growth in the future.”

These 10 markets — including three cloud segments (infrastructure as a service [IaaS], integrated platform as a service [iPaas] and communications platform as a service [cPaaS]) — range from technologies that enhance the digital workplace, such as workstream collaboration, workforce analytics and video message-oriented middleware (MOM), to security (endpoint detection and response), analytics (smart data discovery) and storage (in-memory data grids). All are tied to enabling and enhancing an enterprise’s digital transformation efforts.

“The IT buying landscape is changing: Digital business transformation is an effort to create connected, platforms and new industry revenue streams,” said Mr. Lovelock. “Organizations that are not creating new digital business models or new ways to engage constituents or customers, are falling behind. Those vendors that do not move more quickly than their clients, will be left behind.”

More detailed analysis on the outlook for the IT industry is available in the complimentary webinar “IT Spending 3Q17 Update: Top 10 IT Markets Strategic Planners Must Track in 2018,” at 11 a.m. ET today, October 3, 2017, and on demand. During the webinar, Gartner analysts will discuss the full IT spending forecast and details on the top 10 IT markets strategic planners must track in 2018.  

Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of sales by thousands of vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.

The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available at Gartner Worldwide Spending Forecast. This quarterly IT Spending Forecast page includes links to the latest IT spending reports, webinars, blog posts and press releases.

About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the world’s most important gathering of CIOs and senior IT leaders, uniting a global community of CIOs with the tools and strategies to help them lead the next generation of IT and achieve business outcomes. More than 23,000 CIOs, senior business and IT leaders worldwide will gather for the insights they need to ensure that their IT initiatives are key contributors to, and drivers of, their enterprise’s success.

Follow news, photos and video coming from Gartner Symposium/ITxpo on Smarter With Gartner, on Twitter using #GartnerSYMFacebook and LinkedIn.

Upcoming dates and locations for Gartner Symposium/ITxpo include:
October 23-26, Sao Paulo, Brazil
October 30-November 2, Gold Coast, Australia
October 31-November 2, Tokyo, Japan
November 5-9, Barcelona, Spain
November 13-16, Goa, India

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company. The company helps business leaders across all major functions in every industry and enterprise size with the objective insights they need to make the right decisions. Gartner’s comprehensive suite of services delivers strategic advice and proven best practices to help clients succeed in their mission-critical priorities. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has more than 13,000 associates serving clients in 11,000 enterprises in 100 countries. For more information, visit www.gartner.com.

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Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 8,300 associates, including more than 1,800 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.

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