International Data Corporation (IDC) is forecasting that 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 -- a compound annual growth rate (CAGR) of 3.3% for the 2015-2020 forecast period, according to the firm's newly updated Worldwide Semiannual IT Spending Guide..
IDC said its forecast sees positive momentum 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.
"While the consumer and public sectors have dragged on overall IT spending so far in 2016, we see stronger momentum in other key industries including financial services and manufacturing," said Stephen Minton, vice president, Customer Insights and Analysis at IDC. "Enterprise investment in new project-based initiatives, including data analytics and collaborative applications, remains strong and mid-sized companies have been especially nimble when it comes to rapidly adopting 3rd Platform technologies and solutions. Assuming the economy remains stable in 2017, smaller businesses will also begin to climb aboard the 3rd Platform in greater numbers."