Total IT spending worldwide is expected to reach $4.6 trillion in 2023, a 5.1% increase over 2022, according to Gartner’s latest forecast.
Analysts House expects companies to “move forward with digital business initiatives,” even though economists around the world have predicted a possible recession on the horizon.
For example, economists from the International Monetary Fund expected an “increasingly bleak and uncertain outlook”, with Core international economic growth forecast to slow down (Opens in a new tab) From 6.1% in 2021, to 3.2% in 2022, and just 2.9% in 2023.
Where will spending go up the most?
Gartner warns that not all sectors are set for equal growth, and hardware spending is likely to be the worst performing of all the IT sectors examined.
Analysts’ house forecast hardware spending will fall -0.6 to $735,394 million in 2023, a sharp drop from the 15.8% growth recorded in 2021.
The software market appears to be one of the strongest performing IT segments, growing by 11.3% in 2023 to reach $879,625 million, which the company attributed to a “switch to cloud options.”
The impressive performance of the software sector can be related to the constant demand for possible tools video conferencing And the Remote Collaboration after the epidemic.
IT services are set to rank as the second best performer, growing 7.9% in 2023 to reach $1,357,914 million in 2022.
Data center systems and communications services are also poised for solid growth if Gartner’s statistics are to be believed, with growth of 3.4% and 2.4%, respectively, expected in those regions.
“Enterprise IT spending is stagnating as CEOs and CFOs, rather than cutting IT budgets, increase spending on digital business initiatives,” said John David Lovelock, Gartner Senior Vice President Analyst. “The economic disruption will change the context of technology investments, increase spending in some areas and accelerate declines in others, but it is not expected to have a material impact on the overall level of enterprise technology spending.”
However, inflation has eroded the purchasing power of consumers in almost every country around the world. Consumer purchasing power has been reduced to the point that many consumers are now delaying the purchase of devices for 2022 until 2023, which has reduced spending on devices by 8.4% in 2022 and 0.6% in 2023.”
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