According to the latest International Data Corporation (IDC)
Black Book, IT spending remained broadly strong throughout a
difficult end to 2012 as business confidence waned in the shadow of the
"fiscal cliff'," economic growth declined in much of Europe, and
economies in Asia/Pacific struggled to cope with reduced exports. In
spite of these headwinds, worldwide IT spending recorded annual growth
of 5.9% in 2012 in constant currency terms, keeping pace with the 5.8%
growth recorded in 2011. Total IT spending on hardware, software and IT
services reached $2 trillion, while ICT spending (including telecom
services) increased by 4.8% to $3.6 trillion.
Last year was difficult for U.S.-based IT suppliers, however, which were
adversely affected by the strength of the dollar throughout most of the
year. In U.S.-dollar terms, worldwide IT spending grew by just 3.3%.
This marked a significant slowdown from the U.S. dollar growth rate of
9.5% recorded in 2011. In 2013, IT spending is expected to increase by
5.5% as businesses and consumers continue to invest in mobile devices,
storage, networks, and software applications.
While overall IT spending remained stable, 2012 was another difficult
year for the PC industry, which recorded a 2% decline in annual
revenues. Revenue declines were also recorded in servers, PC monitors,
and feature phones as cannibalization from tablets and smartphones
continued to reshape the IT industry landscape. For the first time,
spending on smartphones in 2012 exceeded PCs, reaching almost $300
billion, while PC spending declined to $233 billion.
"Cannibalization is happening across the industry," said Stephen
Minton, Vice President in IDC's Global Technology & Industry
Research Organization. "Smartphones have taken over from feature phones,
tablet adoption is impacting PC spending, and the Cloud is affecting the
traditional software, services and infrastructure markets. IT spending
is still growing organically, but not at the same pace as prior to the
financial crisis. Businesses are adopting IT solutions such as
virtualization, automation, and SaaS as a means to reduce the annual
increases in their overall IT spending at a time when economic
uncertainty remains high."
The global economy has been volatile through the past 12 months, and
this sense of uncertainty persisted into the first quarter of 2013. IDC
expects the U.S. economy to stabilize in the second half of the year,
driving IT spending growth of 5.5%. 2013 will be another tough year for
Europe, however, where tech spending is expected to increase by just 2%
as the Eurozone and UK struggle to shrug off the lingering debt crisis.
Excluding mobile devices, growth in Europe will be less than 1%. Japan
has meanwhile lost most of the post-reconstruction momentum that drove
IT spending to increase by 4% in 2012, and will record IT growth of 0%
"This will be another tough year for mature economies," added Minton.
"Weakness in Europe, as governments continue to impose austerity
measures with a direct and indirect impact on IT spending, has also
damaged the export-dependent Japanese economy. The U.S. should perform
better, as long as politicians continue to reach 11th-hour deals to
avert an economic crisis, and the PC market in the U.S. will at least
stabilize after two successive years of major declines."
Emerging markets have also been volatile in the past 12 months, with
weaker economic growth in Brazil, India, and China, creating uncertainty
for IT vendors. Economic projections for 2013 are generally positive,
however, and IDC believes that the government in China has enough
ammunition to ensure an improvement in overall growth. With penetration
rates still relatively low in many segments and industrial sectors
within the BRICs and other key emerging markets, a stable economic
outlook will translate into improving IT spending trends.
"We're more confident about China than we were in the middle of 2012,
when PC shipments were slowing and there was a sense that the economy
had slowed down more quickly than the government had planned," said
Minton. "Underlying IT demand remained strong, despite the volatile
capital spending patterns that mainly affected PCs, and total IT
spending in China still increased by 16% last year, which was only
slightly down compared to 17% growth in 2011. We expect more of the same
in 2013, even in spite of the inevitable slowdown in some emerging
technology adoption rates as those markets gradually mature."
Black Book provides quarterly forecasts for IT spending in 54
countries around the world. IT spending forecasts focus on 25 individual
market segments across hardware, software, IT services, and telecom
services for individual countries in all regions including North
America, Latin America, Western Europe, Eastern Europe, Asia/Pacific,
the Middle East, and Africa. The product's Query Tool enables custom
views of all the included data, and presents the following exchange rate
views: U.S. dollars in constant currency, annual and year-to-date
exchange rates, and local currency.
Additional products in this category include the Worldwide
Enterprise Black Book, which analyzes annual IT spending in relation
to four company size segments based on employee counts. The Worldwide
Black Book, Premium Edition, includes cloud spending forecasts,
quarterly IT spending forecasts by region, IT vendor market share
analysis, macroeconomic indicators, IT/Internet penetration, and CIO
survey data. The United
States Black Book: State IT Spending by Vertical Market is an
analysis of the status and projected growth of the IT industry in 50
states and across 15 vertical markets.
For additional information about this research, or to arrange a
one-on-one briefing with Stephen Minton, please contact Sarah Murray at
781-378-2674 or email@example.com.
To request information on custom data cuts or subscription services,
International Data Corporation (IDC) is the premier global provider of
market intelligence, advisory services, and events for the information
technology, telecommunications, and consumer technology markets. IDC
helps IT professionals, business executives, and the investment
community to make fact-based decisions on technology purchases and
business strategy. More than 1000 IDC analysts provide global, regional,
and local expertise on technology and industry opportunities and trends
in over 110 countries worldwide. For 48 years, IDC has provided
strategic insights to help our clients achieve their key business
objectives. IDC is a subsidiary of IDG, the world's leading technology
media, research, and events company. For more information, please visit www.idc.com,
email firstname.lastname@example.org, or call
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