IDC - Global ICT Spending
Forecast 2020 – 2023
Following years of growth, ICT spending will remain relatively flat in 2020 due to the COVID-19 pandemic. 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 2x GDP as new technologies begin to account for a larger share of the market. The emergence of IoT is already contributing to significant market growth, and within 5-10 years new technologies such as robotics, artificial intelligence, and AR/VR will also expand to represent over 25% of ICT spending.
|Technology Spending $M||2018||2019||2020||2021||2022||2023|
Traditional spending on hardware, software, services and telecom has been a tale two markets, with declining revenues from most legacy categories as businesses and consumers focus their ICT spending on a narrow selection of platforms; the COVID-19 pandemic only accelerated this divergence. 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, AR/VR, and blockchain. 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.