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IT spending set to return to growth in 2020

(Image credit: Image source: Shutterstock/TechnoVectors)

After three years in the decline, IT spending in the EMEA region will finally return to growth next year, analysts from Gartner are claiming. The company’s latest report argues that we’ll be seeing $798 billion being spent on IT next year, which represents a 3.4 per cent increase compared to this year.

Consumer electronics won’t be the primary driver for this growth, though, as Gartner believes this segment will continue on its downward spiral. A lack of new “must have” features, as well as the decline in currencies which drove prices higher, will see customers delay replenishing their stocks for another year.

The communications services segment will achieve “long-term growth” after this year, despite fixed-line services declining every year until 2023, in both consumer and business spaces.

Mobile voice spending will remain flat, but mobile data spending will increase 3 to 4 per cent, per year, which will keep the overall communications services market growing next year.

Enterprise software will continue being the fastest-growing market segment next year, with spending on software rising 3.4 per cent this year, and 9.2 per cent next year.

Software as a service (SaaS) will achieve 14.1 per cent growth in 2019 and 17.7 per cent in 2020.

With regulatory compliance rising to the top of the priorities list for most companies in EMEA, many are buying new security solutions. That’s why spending on security will grow 9.3 per cent in 2019 and rise by 8.9 per cent in 2020.

“Globally, security spending is increasing and being driven by the need to be compliant with tariffs, trade policies and intellectual property rights. In EMEA, privacy and compliance concerns, further driven by GDPR, take precedence,” said Mr Lovelock, research vice president at Gartner.