Worldwide IT Spending is Forecasted to Grow 2.4% This Year

Gartner has predicted that worldwide IT spending will reach $3.5 trillion in 2017, which is a 2.4% increase from 2016. The growth rate is up from the previous quarter’s forecast of 1.4% due to the US dollar declining against many foreign currencies.

The worldwide enterprise software market is forecast to grow 7.6% in 2017, which is up from 5.3% compared to 2016. As software applications allow more organisations to derive revenue from digital business channels, there will be a stronger need to automate and release new applications and functionality.

Although IT spending increased in 2016, only two of the top ten IT vendors posted revenue growth. With revenue sources still tied to the convergence of social, mobility, cloud and information, some of the top ten vendors are expected to fare better in 2017 due to strength in mobile phone sales.

Worldwide spending on devices (PCs, tablets, ultra-mobiles and mobile phones) is projected to grow 3.8% this year, to reach $654 billion. This is up from the previous quarter’s forecast of 1.7%. Mobile phone growth will be driven by increased average selling prices for premium phones in mature markets due to the new iPhone introduction, and the increased mix of basic phones over utility phones. However, due to replacement cycles remaining extended, the tablet market continues to decline.

Gartner worldwide IT spending forecast in $billion