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Worldwide IT Spending Forecast to Grow 0.6% in 2016
January 18, 2016 | Gartner, Inc.Estimated reading time: 3 minutes
Worldwide IT spending is forecast to total $3.54 trillion dollars in 2016, just a 0.6 percent increase over 2015 spending of $3.52 trillion dollars, according to Gartner, Inc. 2015 saw the largest U.S. dollar drop in IT spending since Gartner began tracking IT spending. $216 billion dollars less was spent on IT in 2015 than in 2014 and 2014 spending levels won’t be surpassed until 2019.
"The rising U.S. dollar is the villain behind 2015 results," said John-David Lovelock, research vice president at Gartner. "U.S. multinationals' revenue faced currency headwinds in 2015. However, in 2016 those headwinds go away and they can expect an additional 5 percent growth."
The Gartner Worldwide IT Spending Forecast is the leading indicator of major technology trends across the hardware, software, IT services and telecom markets. For more than a decade, global IT and business executives have been using these highly anticipated quarterly reports to recognize market opportunities and challenges, and base their critical business decisions on proven methodologies rather than guesswork.
The devices market (PCs, ultramobiles, mobile phones, tablets and printers) is forecast to decline 1.9 percent in 2016. The combination of economic conditions preventing countries such as Russia, Japan and Brazil from returning to stronger growth, together with a shift in phone spending in emerging markets to lower-cost phones, is overlaid with weak tablet adoption in regions where there was an expectation of growth.
Ultramobile premium devices are expected to drive the PC market forward with the move to Windows 10 and Intel Skylake-based PCs. Gartner has slightly reduced the speed of adoption over the forecast period, as buying in Eurasia, Japan, and the Middle East and North Africa moves away from purchasing these relatively more expensive devices in the short term, but expect them to revert back to buying in 2017 as the economic environment stabilizes.
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