Global IT spend to accelerate in 2014: report

Emerging markets’ recovery to drive renewed growth cycle, says IDC

Tags: International Data Corporation
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Global IT spend to accelerate in 2014: report Overall tech spending is on course to increase by 4% this year.
By Staff Writer Published  November 7, 2013

Worldwide IT spending is expected to accelerate next year after dipping in 2013 to its slowest pace of growth since the financial crisis, according to International Data Corporation (IDC) figures.

The latest edition of IDC's IDC's Worldwide Black Book reports that overall tech spending is on course to increase by 4% this year at constant currency, reaching $2.04trn, down from last year's growth of 5% due mainly to the slowdown in key emerging markets including China and Russia. IDC forecasts that in 2014, a rebound in China and continued momentum in the US and Europe will see a return to overall industry growth of more than 5% (reaching $2.14trn).

Smartphones still driving growth, but infrastructure set for recovery

Almost half of this year's industry growth is due to continued strength in smartphone and tablet shipments. Excluding mobile phones, IT spending will increase by only 2.6% this year at constant currency (just 0.7% in US-dollar terms, based on year-to-date exchange rates).

Enterprise IT spending in many regions has been tepid since last year, with weaker spending on PCs, servers and storage than previously expected. Tentative signs of stability in commercial PC shipments during Q3, however, may foreshadow the gradual recovery in enterprise infrastructure investment that is expected to unfold in the next 12 to 18 months as a broad-based capital spending cycle kicks into gear. Spending on servers, storage and enterprise networks will increase by just 1% in 2013 before accelerating to growth of 4% next year.

 "This has been a tough year for many IT vendors, with infrastructure spending in the first half of 2013 proving weaker than previously expected," said Stephen Minton, vice president of IDC's Global Technology & Industry Research Organisation (GTIRO).

"The overall industry has been propped up by continued strength in mobile devices, especially smartphones, but the slowdown in emerging markets was another headwind for infrastructure-focused tech firms on top of government sequestration in the US and continued sluggish growth in Europe."

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