Revenue Of Top-Tier IT Distributors Slipped From 2022 Highs In Q1 2023 But Remained Above Prior Years, According To IDC's North America Monthly Distribution Tracker, Powered By GTDC

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For more information, contact:

• Ruth Flynn (rflynn)  Email: rflynn@idc.com  Phone number: +1 (508) 988-6992
• Michael Shirer (mshirer)  Email: mshirer@idc.com  Phone number: +1 (508) 988-7892

NEEDHAM, Mass., April 26, 2023 – IT distributor revenue for the first quarter of 2023 contracted by 6% year-over-year to $19.1 billion, as reported in the IDC North America Distribution Tracker (NADT). The decline was driven by reduced sales in consumer device categories like personal computing and AV which saw double-digit year-over-year revenue decrease by 28.3% and 24.5%, respectively. On the positive side, Software, Services and Network Infrastructure enjoyed positive year-over-year growth and illustrate how dynamic the distribution channel can be.

Personal Computing sales through Tier 1 IT distribution mirror the trends in the overall market, and after two quarters of revenue declining by more than 20% year-over-year, revenues are down to roughly pre-pandemic levels. As a result, personal computing slipped below software to become the second largest category for NADT revenue. Connected to this sharp contraction in personal computing sales is the drop in PC Monitor revenues which declined 35.5% year-over-year and pulled down the whole AV product group.

“Following a surge in sales during the COVID pandemic, device sales are slowing in response to inflation and other spending priorities," said Ruth Flynn, research vice president, IDC Tracker & Data Products. "In the current environment, spending on enterprise and network infrastructure, software and services has been more resilient as companies continue to invest in digital transformation and enterprise resiliency.”

Network infrastructure grew 19.7% year-over-year in Q1 2023 and was spurred by substantial growth in ethernet switches and access points at 36.7% and 50.9%, respectively. These two categories account for 63% share of networking infrastructure devices with Cisco, HPE, and Juniper leading the market.

Both software and services grew 6.6% year-over-year to $3.86 Billion and $3.3 Billion, respectively. Several of the Top 5 companies in the software group enjoyed significant growth in Q1 2023 including Autodesk at 30.5% year-over-year growth and Palo Alto Networks at 20.6%. Services associated with network infrastructure hardware as well as services associated with software sold well through the distribution channel, strengthening services position among the Top 3 product groups.

IDC's North America Weekly Distribution Tracker and IDC's North America Monthly Distribution Tracker are built on the exclusive partnership between IDC and the Global Technology Distribution Council (GTDC) and provides the industry's most comprehensive view of technology distribution data and market trends in the U.S. and Canada. The data in these Trackers is actual sales data collected weekly from sales receipts across the largest distributors in North America for more than 1,000 brands over several years. This data is mapped to IDC's taxonomy with over 200 categories organized into 13 distinct product groups with detailed product attributes across categories.

About IDC Trackers

IDC Tracker products provide accurate and timely market size and segmentation, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, monthly, and weekly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

For more information about the North America Weekly and Monthly Distribution Trackers, powered by GTDC, please contact Ruth Flynn at rflynn@idc.com.

Click here to learn about IDC's full suite of data products and how you can leverage them to grow your business.

About IDC

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. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

About the GTDC

The Global Technology Distribution Council is the industry consortium representing the world's leading tech distributors. GTDC members drive an estimated $150 billion in annual worldwide sales of products, services, and solutions through diverse business channels. GTDC conferences support the development and expansion of strategic supply-chain partnerships that continually address the fast-changing marketplace needs of vendors, end customers and distributors.

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