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Worldwide IT Spending to Grow 1.4% This Year

Gartner has predicted that worldwide IT spending will reach $3.5 trillion in 2017. This represents a 1.4% rise from the 2016 figure. However, the worldwide IT spending is down for the previous quarter’s forecast of 2.7%. According to John-David Lovelock, research VP at Gartner, the strong US dollar has cut a total of $67 billion out of the 2017 IT spending forecast.

The datacentre system segment is expected to grow 0.3% this year, up from negative growth in 2016. Lovelock made the point that there is a shift in server purchases as enterprises are now renting server power in the cloud from companies such as Amazon, Google and Microsoft and this has led to a reduction in spending.

Due to the rise in mobile phone sales and some improvement in sales of printers, PCs, tablets, and ultramobiles, worldwide spending in this segment is projected to grow 1.7% this year. This is a rise from the 2.6% drop last year.

The desktop PCs, laptops and tablet market continues to decline, with both sales and ownership being negative throughout the forecast. During this year, business Windows 10 upgrades should provide some growth, although increased component costs will see PC prices increase.

The growth in mobile phones this year, will be driven by the increase in the average selling prices for phones in emerging Asia/Pacific and China markets, plus the expected sales for the 10th anniversary iPhone.

The worldwide IT services market is forecast to grow 2.3% this year, which is down from the rise of 3.6% in 2016.