Variations in global currency exchange rates will mean that ‘all’ vertical industries will show negative growth in IT spending this year, according to Gartner. The firm predicts spending to reach $2.7 trillion: a 3.5% YoY decline.
Appreciation of the US dollar (mainly against the euro, yen and ruble) has had a heavy impact on IT spending, as has the slowdown in emerging markets (especially Russia, Brazil and China), said Gartner’s Anurag Gupta. “[M]ost technology firms reporting revenue in U.S. dollars have taken a negative hit on their quarterly revenue earnings”, he added.
Although all industries are expected to decline, market growth will be led by the banking & securities, retail and healthcare sectors.
| Worldwide IT Spending Forecast by Vertical Industry ($ Millions) | ||||
|---|---|---|---|---|
| Industry | 2014 Spending | 2014 Growth | 2015 Spending | 2015 Growth |
| Banking & Securities | 498,377 | 2.1% | 486,278 | -2.4% |
| Communications: Media Services | 444,639 | 1.5% | 428,675 | -3.6% |
| Education | 66,524 | 1.0% | 64,182 | -2.5% |
| Government | 447,114 | -1.2% | 424,660 | -5.0% |
| Healthcare Providers | 107,934 | 2.7% | 104,982 | -2.7% |
| Insurance | 187,958 | 1.8% | 182,572 | -2.8% |
| Manufacturing & Natural Resources | 498,995 | 1.0% | 476,546 | -4.5% |
| Retail | 179,538 | 2.5% | 176,916 | -1.5% |
| Transport | 133,785 | 1.6% | 129,696 | -3.1% |
| Utilities | 149,379 | 1.3% | 143,479 | -3.9% |
| Wholesale Trade | 87,707 | 0.69% | 82,011 | -3.2% |
| Total | 2,798,950 | 1.2% | 2,699,998 | -3.5% |
| Source: Gartner | ||||
IT spending will fall 1.5% YoY in 2015. Priority areas include technologies that help retailers understand customers better (i.e. analytics); improve engagement through multichannel experiences; and speed the buying process. IT infrastructure that can accepti mobile payments and digital wallets will be key in the second half of the year. Gartner has also seen continued infrastructure investments in new point-of-sale terminals.
Despite a forecast 2.4% fall in IT spending in banking & securities, Gartner expects banks in developed markets to double their IT budgets. This will be to support digital (and other new technology) initiatives through 2019. Cybersecurity also remains an area of focus for consumer banking.
In healthcare, spending will drop 2.7%. The USA is the largest healthcare IT market worldwide, representing about 40% of overall spending. The country is also a focus of global attention by ICT firms, due to current ongoing investments in healthcare IT; mainly driven by the governments HITECH (Health Information Technology for Economic and Clinical Health) Act. This provides financial incentives for IT investment by hospitals and physicians.
