Gartner has delivered its 2019 global spending forecast for IT technology, revealing a potential drop compared to last year.
The analyst firm expects global IT spending to hit $3.74 trillion this year, representing a 0.6 per cent jump from 2018. However, last quarter, Gartner predicted a jump of 1.1 per cent.
Most growth will come from the enterprise software market, which will hit $457 billion and should go up nine per cent compared to $419 billion from last year. Gartner says CIOs are continuously rebalancing their portfolios, mostly shifting to cloud and off-premises capabilities.
Gartner believes cloud can still become more mainstream in the near future, influencing bigger portions of enterprise IT decisions, mostly in system infrastructure. In the future, it will also expand into office suites, content services and collaboration services.
When it comes to consumer spending, Gartner says the world is continuing its trend of lesser spending. This is mostly influenced by the fact that the devices have an extended life (with cloud support), that people generally need less powerful equipment, and that the market is saturated.
The devices market is expected to fall 4.3 per cent this year, to $682bn.
“Despite uncertainty fuelled by recession rumours, Brexit, trade wars and tariffs, we expect IT spending to remain flat in 2019,” said John-David Lovelock, research vice president at Gartner. “While there is great variation in growth rates at the country level, virtually all countries tracked by Gartner will see growth in 2019. Despite the ongoing tariff war, North America IT spending is forecast to grow 3.7 per cent in 2019 and IT spending in China is expected to grow 2.8 per cent.”