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Worldwide IT spending to reach $3.9 trillion in 2020

(Image credit: Image source: Shutterstock/violetkaipa)

The global technology industry is set for a major spending spree this year Gartner claimed. The analyst firm’s latest forecast, released this Wednesday, predicts a spend of $3.9 trillion in 2020, up from the $3.8 trillion spent last year.

The majority of this difference will be due to Windows 7 reaching end of life, as well as further proliferation of enterprise cloud software. Software spending in general will grow 10.5 per cent this year, performing better than data centre systems, IT and communication services, and hardware.

Enterprises will invest more in cloud-based solutions than in non-cloud tools, which is why Gartner believes this is “where the next-generation, disruptive business models will emerge.”

When it comes to hardware, Q4 2019 has seen a decline in sales, something Gartner expects to change this time around. Approximately a $10 billion increase is generated through people going for cheap smartphones in third-world countries.

At the same time, the dollar is expected to grow stronger, which will be somewhat of an obstacle to increased adoption, especially when it comes to premium smartphones and data centre gear.

"Although political uncertainties pushed the global economy closer to a recession, it did not occur in 2019 and is still not the most likely scenario for 2020 and beyond," said John-David Lovelock, research vice president at Gartner. 

"With the waning of global uncertainties, businesses are redoubling investments in IT as they anticipate revenue growth, but their spending patterns are continually shifting."