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Worldwide IT spending is projected to total $3.7 trillion in 2018, an increase of 4.5 percent from 2017, according to the latest forecast by Gartner.
"Global IT spending growth began to turn around in 2017, with continued growth expected over the next few years. However, uncertainty looms as organizations consider the potential impacts of Brexit, currency fluctuations, and a possible global recession," said John-David Lovelock, research vice president at Gartner.
"Despite this uncertainty, businesses will continue to invest in IT as they anticipate revenue growth, but their spending patterns will shift. Projects in digital business, blockchain, Internet of Things (IoT), and progression from big data to algorithms to machine learning to artificial intelligence (AI) will continue to be main drivers of growth.
Enterprise software continues to exhibit strong growth, with worldwide software spending projected to grow 9.5 percent in 2018, and it will grow another 8.4 percent in 2019 to total $421 billion. Organizations are expected to increase spending on enterprise application software in 2018, with more of the budget shifting to software as a service (SaaS). The growing availability of SaaS-based solutions is encouraging new adoption and spending across many subcategories, such as financial management systems (FMS), human capital management (HCM) and analytic applications.
Worldwide IT Spending Forecast (Billions of U.S. Dollars)
| 2017 Spending | 2017 Growth (%) | 2018 Spending | 2018 Growth (%) | 2019 Spending | 2019 Growth (%) |
Data Center Systems | 178 | 4.4 | 179 | 0.6 | 179 | -0.2 |
Enterprise Software | 355 | 8.9 | 389 | 9.5 | 421 | 8.4 |
Devices | 667 | 5.7 | 704 | 5.6 | 710 | 0.9 |
IT Services | 933 | 4.3 | 985 | 5.5 | 1,030 | 4.6 |
Communications Services | 1,393 | 1.3 | 1,427 | 2.4 | 1,443 | 1.1 |
Overall IT | 3,527 | 3.8 | 3,683 | 4.5 | 3,784 | 2.7 |
The devices segment is expected to grow 5.6 percent in 2018. In 2017, the devices segment experienced growth for the first time in two years with an increase of 5.7 percent. End-user spending on mobile phones is expected to increase marginally as average selling prices continue to creep upward even as unit sales are forecast to be lower. PC growth is expected to be flat in 2018 even as continued Windows 10 migration is expected to drive positive growth in the business market in China, Latin America and Eastern Europe. The impact of the iPhone 8 and iPhone X was minimal in 2017, as expected. However, iOS shipments are expected to grow 9.1 percent in 2018.
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