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IT Industry to Grow 3.2% This Year

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IT Industry to Grow 3.2% This Year
[ Business]

As the computer industry deals with the transition to a mobile majority, IT spending is still on-pace to grow significantly in 2014. Market research firm Gartner this week issued a new report predicting that IT revenue will grow 3.2% in 2014, hitting a massive $3.8 trillion worldwide.

This growth is coming despite the recent slowdown seen in traditional PC markets. Mobile devices such as smartphones and tablets are making up the difference, but mature mobile markets such as the U.S. are already showing signs of saturation as growth prospects for the segment turn toward emerging markets such as China.

Overall the market for tech devices is set to hit $689 billion this year, up 4.4% from device revenue in 2013. However, the shift in the market toward low-end devices and emerging markets is driving down average sales prices for mobile devices.

“Globally, businesses are shaking off their malaise and returning to spending on IT to support the growth of their business,” said Richard Gordon, managing VP at Gartner. “Consumers will be purchasing many new devices in 2014; however, there is a greater substitution toward lower cost and more basic devices than we have seen in prior years.”

Much of the IT growth predicted for 2014 will come from the enterprise software and services segment. Traditional PC manufacturers have already been seen reorganizing their businesses to take advantage of this spending shift.

Gartner predicts that enterprise software revenue is set to grow nearly 7% to $320 billion while IT services spending will rise 4.6% to $964 billion. The markets for these products are expected to see continued growth in the coming years as businesses invest more heavily in online infrastructure.

“The ‘Nexus of Forces’ (the convergence of social, mobile, cloud and information) continues to drive growth across key major software markets, such as CRM, database management systems (DBMSs), data integration tools and data quality tools,” said Gordon. “In fact, organizational adoption of data management technologies to support the Nexus will cause spending on DBMSs to surpass operating systems, making the former the largest enterprise software market in 2014.”

Image via Thinkstock

IT Industry to Grow 3.2% This Year
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