Estimates national and international government to show strongest growth
Global enterprise IT spending across all industry markets is forecast to surpass $2.4 trillion in 2010, an increase of 4.1% compared to same period last year, according to a new report from IT research and advisory firm Gartner.
The firm said that industries are returning to growth after a difficult year in 2009 when IT spending by vertical market totaled $2.3 trillion, a 5.6% decline from 2008.
The research firm expects IT Spending by banking and securities market to grow by 4.6% to $396.9bn in 2010, while total IT spending by communications media and services market is expected to reach $394.2bn, marking a 4.4% increase from the previous year. IT spending from the education market is also projected to increase (4.1%), amounting to a total of $63.99bn.
According to the report, national and international government will show the strongest growth in 2010, with an increase of 6.2% in IT spending. Manufacturing and natural resources, and wholesale trade will experience the weakest growth through 2014, growing at 2009-2014 CAGRs of 3.0% and 3.1%, respectively.
Gartner recommends that technology and service providers execute business and marketing plans for 2010 based on a 4.1% annual growth rate, but prepare contingencies to mitigate the downside risk of a slow-growth scenario or a ‘double dip’ recession, based on uncertainties in the economic environment.
Kenneth Brant, research director at Gartner, said: 2010 will see IT spending in all major industries returning to growth, although that growth will vary by individual sector. Among the two largest industry segments, IT spending in the banking and securities market will rebound to $396.9bn in 2010, a 4.6% increase from 2009; whereas IT spending will recover more slowly in manufacturing and natural resources during 2010, growing to $428.9bn, a 3.1% increase from 2009.