The market for UK enterprise IT hardware is set to grow exponentially over the next four years, a new report forecasts.
Figures from research firm Kable exclusively shared with CBR predict that the total UK spending on hardware will grow at a compound annual growth rate (CAGR) of 4.5% over the four years until 2018 as the market benefits from new expansion and growth opportunities.
Having been estimated at a total of $15bn in 2013, Kable forecasts that UK spending will rise to $15.7bn this year before continuing to increase, eventually being predicted to reach $18.8bn by 2018.
This growth will be fuelled by heightened spending in the retail banking sector, which is forecast to hit $2.5bn by 2018, (a CAGR of 5.6%), as well as the healthcare sector ($2.3bn) and the communications and IT sector ($2.2bn).
The highest proportional increases will be seen in the financial sector, which is forecast to see a rise of 6.2% over the next four years, closely followed by the retail sector (5.8%) and insurance sector (5.7%).
New computers and mobile devices will form the majority of the spending as companies look to keep their employees connected, with desktop PCs forecast to cost $4bn and Notebook PCs accounting for $4bn by 2018.
The highest growth rates, however, will involve a range of IT infrastructure products, with UK spending on SAN adaptors and connectors forecast to rise 8.5% by 2018.
This is followed by smart card readers (7.5%), scanners and imaging devices (7.2%) and Encryption/SSL Accelerators (7.1%), spending on which will also hit significant new highs.
Kable's Market Opportunity Forecast spans 37 geographical markets across six regions, and covered 29 technology segments over six technology categories. The report's estimate of market size includes the opportunities to sell new products, associated maintenance, and services (excluding sales opportunities for third-party services providers).
In Western Europe as a whole, hardware IT spending has a 4.9% CAGR forecast, rising to $97bn by 2018, higher than every market except the Asia Pacific region, where spending was forecast to reach $145bn by 2018, a CAGR of 6.9%.
The North American market was forecast to hit $93bn by 2018.