Current Issues

Regular Industry Development Updates, Opinions and Talking Points relating to Manufacturing, the Supply Chain and Logistics.

Gartner Says Global IT Spending to Grow 6.2 Per Cent in 2018

10-Apr-2018
Gartner Says Global IT Spending to Grow 6.2 Per Cent in 2018
Worldwide IT spending is projected to total $3.7 trillion in 2018, an increase of 6.2 per cent from 2017, according to the latest forecast by Gartner, Inc.

"Although global IT spending is forecast to grow 6.2 per cent this year, the declining US dollar has caused currency tailwinds, which are the main reason for this strong growth," said John-David Lovelock, research vice president at Gartner. "This is the highest annual growth rate that Gartner has forecast since 2007 and would be a sign of a new cycle of IT growth. However, spending on IT around the world is growing at expected levels and is in line with expected global economic growth. Through 2018 and 2019, the US dollar is expected to trend stronger while enduring tremendous volatility due to the uncertain political environment, the North American Free Trade Agreement renegotiation and the potential for trade wars."

Enterprise software spending is forecast to experience the highest growth in 2018 with an 11.1 per cent increase (see Table 1). Barring unexpected disruption, the software industry is expected to continue capitalising on the evolution of digital business. Application software spending is expected to continue to rise through 2019, and infrastructure software will also continue to grow, bolstered by modernisation initiatives.

Table 1. Worldwide IT Spending Forecast (Billions of US Dollars)

Even with a strong end to 2017, worldwide spending on data centre systems is forecast to grow 3.7 per cent in 2018, down from 6.3 per cent growth in 2017. The longer-term outlook continues to have challenges, particularly for the storage segment. The strength at the end of 2017 was primarily driven by the component shortage for memory components, and prices have increased at a greater rate than previously expected. Whereas previously, component shortages were expected to ease into 2018, the shortages are now expected to continue throughout the year with the supply not expected to ease until the end of the year.

Worldwide spending for devices — PCs, tablets and mobile phones — is forecast to grow in 2018, reaching $706 billion, an increase of 6.6 per cent from 2017. "The device market continues to see dual dynamics. Some users are holding back from buying, and those that are buying are doing so, on average, at higher price points," said Mr Lovelock. "As a result, end-user spending will increase faster than units through 2022. However, total end-user spending and unit shipments are expected to be lower compared with previous forecasts, as demand for ultramobile premium devices, ultramobile utility devices and basic phones is expected to be slow."

More detailed analysis on the outlook for the IT industry will be provided in the complimentary webinar “IT Spending Forecast Q1 2018: The Digital Storm – Will You Sink or Surf?” at 4:00pm British Summer Time (BST) on 10th April, 2018, and on demand. During the webinar, Gartner analysts will discuss the full IT spending forecast and details on which IT markets are poised to take advantage of the digital storm.

Gartner's IT spending forecast methodology relies heavily on rigorous analysis of sales by thousands of vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.

The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available at Gartner Worldwide Spending Forecast. This quarterly IT Spending Forecast page includes links to the latest IT spending reports, webinars, blog posts and press releases.

App Insights: How can artificial intelligence innovate supply chain management?
1 week ago
Managing Technological Change Without any Supply Chain Disruption
1 week ago
Moody’s Blues for House of Fraser; but Website Failings are Just as Damaging
1 week ago
Artificial Intelligence: What’s Now And Next In IoT-driven Supply Chain Innovation
2 weeks ago
Indiana Jones and the supply chain bullwhip effect
2 weeks ago
How Enterprise Labeling Helps You Conquer Regulatory Challenges
2 weeks ago
3 Tips for Empowering Millennial Warehouse Workers
2 weeks ago
More robots means easier delivery - but what about the infrastructure?
2 weeks ago
Safety in the warehouse: Five key risk areas for 360-degree protection
3 weeks ago
Automotive resilience, not just airbags and crash tests, but IT too
3 weeks ago
New High Street panel is facing a race against a terminal diagnosis
3 weeks ago
Delivering the supply chain revolution
3 weeks ago
A market of one: the potential of the personalized supply chain
4 weeks ago
5 EIS rules you are probably not aware of
4 weeks ago
TMS: an enterprise priority
1 month ago
Labeling Solutions for Global Expansion
1 month ago
Prime Day will be a $1.6bn loss-leader creating millions more Prime members, says e-commerce expert
1 month ago
Say what? The new possibilities of voice and machine driven retail
1 month ago
‘Peak faith’ in the cloud only 12-18 months away with slump to follow, warns 6point6 Cloud Gateway
1 month ago
As you were for UK manufacturing sector, but new business growth at three month high
1 month ago
Back to IoT basics: Automating outcomes to improve customer experience
1 month ago
Investigation of the "Fast Fashion" impact
1 month ago
Redefining Rental for Materials Handling Equipment
1 month ago
With the Intelligent Enterprise, SAP Creates “A Completely Different Kind of Flexibility”
1 month ago
The supply chain is only as strong as its weakest link
1 month ago
How to Streamline Labeling in the Pharma Space
1 month ago
‘A revolution happened in the way we buy services last week – and no one has noticed!’
1 month ago
Hot Topics at GS1 Connect? Labeling, Blockchain and More
1 month ago
Retailers must Embrace Change
1 month ago
Labeling Solutions That Bridge Islands of Data
2 months ago
My Journey to the World’s Most Important Gathering of Supply Chain Leaders
2 months ago
Workforce of the Future
2 months ago
Securing your supply chain against political uncertainty
2 months ago
On-demand warehousing could help retailers score big this summer
2 months ago
Half of organisations set for major procurement and supply chain AI investment within two years
2 months ago
Brexit, the weather & online shopping: How Britain’s favourite conversations are shaping supply chains
2 months ago
The Road to Regulatory Compliance for Your Supply Chain Labeling
2 months ago
The War on Packaging
2 months ago
Five data dramas that keep your CIO awake at night
2 months ago
As sales fall new report finds many department stores’ websites suffer from clunky integration and poor delive
2 months ago
Got Your Surfboards Ready to Master the Wave of Digitalization?
2 months ago
TrustArc to Offer IAPP Privacy Core® GDPR Training to Address Compliance Requirements
2 months ago
The Market has never been Stronger for Horizontal and Vertical API Platforms
2 months ago
Selecting the best Transport Management System - One of the most important logistics decisions you’ll make
2 months ago
“Digital Transformation” and Supply Chain Planning
2 months ago
Coolest Advice for Making Blockbuster IoT Devices?
2 months ago
The Fall of ‘Made in China’
2 months ago
How can artificial intelligence help the food industry?
3 months ago
Streamlining Operations With Waveless Picking
3 months ago