IT spend will increase by 4.3% next year, says Gartner
Enterprise software and services will experience the highest levels of growth
IT spending will top 3.7 trillion in 2018, according to predictions from analyst house Gartner an increase of 4.3% compared to 2017.
The areas with the highest levels of growth will continue to be enterprise software and services, increasing by 9.4% and 5.3% respectively. Following two years of reduced sales, devices also look to be experiencing an uptick, with Gartner predicting growth of 5.3% this year and 5% in 2018.
The research firm said this is down to the price of high end smartphones increasing in mature markets and the introduction of the iPhone 8 and iPhone X. PC sales will also increase as businesses look to replace their legacy computers, with Windows 10 machines.
"Looking at market opportunity how profitable a market is, how big it is and how fast is it growing today and for the next five years we have identified the top markets that companies should be looking to be part of in 2018," said John-David Lovelock, research vice president at Gartner.
"Global IT spending is showing little overall growth, as are traditional markets. These top 10 markets will be the key to remaining relevant and achieving growth in the future."
Although communications services will continue to reap in revenues, with Gartner predicting $1.42 trillion will be spent on such technologies in 2018, year-on-year growth will be one of the lowest in the sector at 2.2%.
However, IT departments are most likely to cut back spending on datacentres next year, with the sector's growth increasing by just 1.8% over the next 12 months.
"The IT buying landscape is changing: Digital business transformation is an effort to create connected, platforms and new industry revenue streams," Lovelock added. "Organisations that are not creating new digital business models or new ways to engage constituents or customers, are falling behind. Those vendors that do not move more quickly than their clients, will be left behind."