Worldwide enterprise IT spending across all industry markets will grow 2.9 per cent in 2010 and surpass $2.4 trillion, according to Gartner, Inc. Analysts said that all industries are continuing to return to growth after a challenging year in 2009, when IT spending by vertical market totalled US $2.3 trillion, a 5.9 per cent decline from 2008.
“The enterprise IT market will certainly return to growth in 2010, but we now expect it will grow by only 2.9 per cent globally, down from 4.1 per cent growth we had forecast earlier this year,” said Kenneth Brant, research director at Gartner. “The national and international government sector will experience the strongest growth rate in 2010, with IT spending growing 4 per cent in 2010 (see Table 1).”
IT Spending by Industry Vertical Market, Worldwide (Millions of Dollars)
|
Industry |
Total IT Spending 2010 |
Total IT Spending 2009 |
2009-2010 Growth (%) |
|
Banking and Securities |
390,488 |
379,855 |
2.8 |
|
Communications Media and Services |
392,506 |
378,750 |
3.6 |
|
Education |
64,148 |
62,607 |
2.5 |
|
Healthcare |
88,996 |
86,215 |
3.2 |
|
Insurance |
159,926 |
156,573 |
2.1 |
|
Local and Regional Government |
179,664 |
176,747 |
1.7 |
|
Manufacturing and Natural Resources |
426,085 |
415,480 |
2.6 |
|
National and International Government |
244,410 |
235,086 |
4.0 |
|
Retail |
146,239 |
142,420 |
2.7 |
|
Transportation |
105,703 |
103,689 |
1.9 |
|
Utilities |
125,583 |
119,927 |
4.7 |
|
Wholesale Trade |
83,315 |
81,196 |
2.6 |
|
Total |
2,407,063 |
2,338,544 |
2.9 |
Source: Gartner (August 2010)
But considerable uncertainty remains and Gartner is advising caution with regard to the economy and its impacts on enterprise IT markets. "We're advising our technology provider clients to prepare business plans for 2011 on the basis of our most-likely scenario for enterprise IT spending growth — 3.5 per cent. However, they should act now to develop contingencies to mitigate the risk of zero growth in 2011, a scenario that carries a lower probability but a much higher potential impact," Mr Brant said. "The bottom line is that technology providers need to be prepared for the worst case, where commercial IT markets stagnate and governments transition to fiscal austerity programmes." Furthermore, Mr Brant urged technology providers to continue to promote IT solutions that deliver "cost optimisation" through 2011, which he contends will be a persistent and overriding value for IT buyers even as markets return to growth.
