ICT Spending Forecast
2018 - 2022 Forecast
While traditional ICT spending is forecast to broadly track GDP growth over the next decade, the overall industry will be catapulted back to growth of more than 2 x GDP as new technologies begin to account for a larger share of the market. The emergence of IoT is already contributing to overall market growth, and within 5-10 years new technologies such as robotics and AR/VR will also expand to represent a significant and growing share of total ICT spending.
|Technology||2016 Spend, $M||2017 Spend, $M||2018 Spend, $M||2019 Spend, $M||2020 Spend, $M||2021 Spend, $M||2022 Spend, $M|
Traditional spending on hardware, software, services and telecom is already a tale of two markets, with declining revenues from legacy categories as businesses and consumers focus all of their ICT spending on a narrow selection of platforms. Over the next 5 years, all growth in traditional tech spending will be driven by just four platforms: cloud, mobile, social and big data/analytics. Meanwhile, cost savings generated by cloud and automation will see more spending diverted towards new technologies such as AI, robotics and AR/VR. Next-gen security related to new technologies will also continue to drive significant growth.
It will take time for some regions to catch up with mature economies when it comes to adoption of some technologies, especially where these are software-driven (e.g. AI) or reliant on legacy infrastructure or inhibited by local factors (e.g. cloud). However, businesses in emerging markets have already moved quickly to focus on rapid adoption of new technologies which deliver rapid return on investment for targeted industrial use cases such as deployment of IoT and robotics solutions by manufacturing firms in China and the rest of Asia. Governments in emerging markets also keen to drive investment in new technologies, leading aggressive smart city initiatives and integrating ICT with economic planning. Over the next 10 years, the gap will begin to narrow.