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Worldwide enterprise IT spending across all industry markets is forecast to surpass $2.4 trillion in 2010, a 4.1 percent increase from 2009 spending, according to Gartner, Inc. Industries are returning to growth after a difficult year in 2009 when IT spending by vertical market totaled $2.3 trillion, a 5.6 percent decline from 2008.
"2010 will see IT spending in all major industries returning to growth, although that growth will vary by individual sector," said Kenneth Brant, research director at Gartner. "National and international government will show the strongest growth in 2010, as IT spending is forecast to grow 6.2 percent worldwide (see Table 1). Among the two largest industry segments, IT spending in the banking and securities market will rebound to $396.9 billion in 2010, a 4.6 percent increase from 2009; whereas IT spending will recover more slowly in manufacturing and natural resources during 2010, growing to $428.9 billion, a 3.1 percent increase from 2009."
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 |
396,867 |
379,570 |
4.6 |
|
Communications Media and Services |
394,171 |
377,537 |
4.4 |
|
Education |
63,992 |
61,463 |
4.1 |
|
Healthcare |
88,626 |
86,191 |
2.8 |
|
Insurance |
157,771 |
151,858 |
3.9 |
|
Local and Regional Government |
184,451 |
176,828 |
4.3 |
|
Manufacturing and Natural Resources |
428,856 |
416,111 |
3.1 |
|
National and International Government |
248,726 |
234,218 |
6.2 |
|
Retail |
149,216 |
142,552 |
4.7 |
|
Transportation |
106,406 |
103,427 |
2.9 |
|
Utilities |
124,451 |
120,387 |
3.4 |
|
Wholesale Trade |
84,063 |
80,754 |
4.1 |
|
Grand Total |
2,427,596 |
2,330,895 |
4.1 |
Source: Gartner (May 2010)
Banking and securities, and communications, media and services will experience the greatest growth through 2014, growing at 2009-2014 compound annual growth rates (CAGRs) of 5.2 percent and 4.6 percent, respectively. Manufacturing and natural resources, and wholesale trade will experience the weakest growth through 2014, growing at 2009-2014 CAGRs of 3.0 percent and 3.1 percent, respectively.
Gartner recommends that technology and service providers execute business and marketing plans for 2010 based on a 4.1 percent annual growth rate, but prepare contingencies to mitigate the downside risk of a slow-growth scenario or a "double dip" recession, based on uncertainties in the economic environment.
"Vendors should convert to a growth market strategy and allocate business development resources to maximize long-term industry growth opportunities," said Mr. Brant. "However, we recommend that they continue to promote the value of solutions that deliver 'cost optimization' in 2010 and 2011, which we believe will be a persistent value for IT buyers even as markets return to growth."
Additional information is available in the report "Forecast Alert: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2008-2014, 1Q10 Update" which is available on Gartner's website at http://www.gartner.com/resId=1366213. The detailed statistics are available at http://www.gartner.com/resId=1362247.
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