We found that most organizations plan to increase IT spend in 2020. IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The emergence of IoT is already contributing to significant market growth, and within 5-10 years new technologies such as robotics, artificial intelligence, and AR/VR will also expand to represent over 25% of ICT spending. On the aggregate, though, total spending on information technology across the industry is expected to increase by an average of 4% each year over the next three years, according to data from the advisory firm Celent. Cloud and mobile enable rapid deployment and connectivity, while also cutting costs and complexity in legacy operations which allows businesses to focus on new digital innovation. However, businesses in emerging markets have already moved quickly to focus on rapid adoption of new technologies which deliver rapid return on investment for targeted industrial use cases such as deployment of IoT and robotics solutions by manufacturing firms in China and the rest of Asia. In considering IT spending as a percentage of revenue, th… Technology Spending $M 2018 Spending 2019 Spending 2019 Growth 2020 Spending 2020 Growth; Hardware: $1,084,908: $1,112,452: 3%: $1,021,966-8%: Software: $546,864: $601,579: 10%: $590,224-2%: Services: $1,027,967: $1,080,681: 5%: $1,053,286-3%: Telecom: $1,345,272: $1,351,481: 0%: $1,339,556-1%: Traditional ICT: $4,005,011: $4,146,194: 4%: $4,005,032-3%: New Technologies: … ahughes@idc.com. However, there was significant variation by industry, with 85 percent of retail organizations planning to increase 2020 IT spend, more than double the 42 percent of consumer products companies planning to grow IT investments. Organizations can also reduce wasted technology spend by optimizing their use of software, SaaS and cloud. The US tech budget outlook for 2020 and 2021 is getting darker, but growth will still be positive with a low risk of an actual downturn. The COVID-19 pandemic will result in ICT spending in 2020 being flat compared to 2019 and kept afloat by growth in new technologies. Tech spending on hardware and services during the 2020 holiday season (October-December) is projected to reach $135 billion in revenue in the U.S. – a 10% increase from last year, says the Consumer Technology Association (CTA). Microsoft Ends Support for Integral Products in 2020, Microsoft SQL Server Licensing – A Deeper Look, Future of Software Packaging: Expert Answers to MSIX Questions, Expected Change in On-Prem Software Spend, Expected Change in Number of Data Centers, Top 3 Priorities for Technology Initiatives, Digital Transformation is “Top 3” by Industry. This blog highlights industry developments you need to know. Enterprise software is the fastest-growing area of tech investment. It will take time for some regions to catch up with mature economies when it comes to adoption of some technologies, especially where these are software-driven (e.g. Largely due to the rapid growth of IoT in recent years, led by investments in the manufacturing and transportation industries, new technologies will soon eclipse $1 trillion in annual revenue. They are followed closely by retail (47 percent), healthcare (44 percent) and services (43 percent) industries, with a higher than average focus on cloud. Big banks, of course, are spending most heavily. Global Technology Spending on Core Administration in Healthcare Market to Reach $42 Billion by 2027. Full demographics for the respondents are available by downloading the Flexera 2020 State of Tech Spend Report. The Worldwide ICT Spending Guide: Industry and Company Size is IDC's flagship all-in-one data product capturing IT spending across more than 120 technology … Wristbands Face Flat Growth. VMware Cloud on AWS Pricing: Is It Really Cheaper Than AWS? However, technology hosting, software and financial services organizations reported that 34 to 35 percent of IT spend is decentralized and controlled by business units. ... Ron is ranked among the top fintech influencers globally, and is a frequent keynote speaker at banking and fintech industry events. Surprisingly, given several high-profile security breaches of customer data, only 31 percent of retailers reported cybersecurity as one of their top three focus areas. Amid the COVID-19 crisis, the global market for Technology Spending … Contents: IT spending by industry charts. Only 8 percent of organizations plan to increase their number of data centers in 2020, while 65 percent plan to decrease. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships. Computing this metric for information technology is a logical extension. Digital transformation is a key driver of technology spend, with companies planning to make larger investments in SaaS and public cloud next year. On average, organizations reported 13.8 percent of employees were in the IT function. Moving forward, IDC projects that the technology industry is on pace to reach $5 trillion in 2021. Meanwhile, there will be increasing crossover in new technologies such as AI with robotics, as end-users deploy new technologies into real-world use cases. IT spending as a percentage of revenue is the most popular formula to use in calculating overall IT spending. Indian tech companies are expected to invest USD 81.9 billion, with enterprise software and IT services the leading segments in a … Construction Industry Tech Spending is On the Rise. Amid the COVID-19 crisis, the global market for Technology Spending on Core Administration in Healthcare estimated at US$31. Technology hosting (67 percent) and software companies (59 percent) lead the pack in citing cloud as one of their top three initiatives. Together, the cloud spend across SaaS and IaaS/PaaS averages 25 percent. The Fight for Smart Assistant Dominance Heats Up as Smart Home Market Grows, Says Transportation and logistics companies are shifting quickly to IaaS/PaaS, with 100 percent planning to increase IaaS/PaaS spend and 50 percent planning significant increases. 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2020 tech spending by industry