Small business to have around 25% of IT spending and medium business to have maximum growth. Meanwhile, telecommunication sector to be sluggish, healthcare and banking to take lead
Revenues for information technology products and services will grow to more than USD 2.7 trillion in 2020 from nearly USD 2.4 trillion in 2016. This represents a compound annual growth rate (CAGR) of 3.3% for the 2015-2020, as per the IDC.
Sector wise prediction
Healthcare will remain the fastest growing industry with a five-year CAGR of 5.7%. Banking, media, and professional services will also experience solid growth with CAGRs of 4.9% and combined revenues of more than USD 475 billion in 2020.
The telecommunications industry is forecast to remain relatively sluggish, although spending levels are expected to gradually improve compared to the past several years. Combined, these four industries (banking, discrete manufacturing, process manufacturing, and telecommunications, which are also the industries with the largest IT expenditures) will generate nearly a third of worldwide IT revenues throughout the forecast.
Gradual improvement is expected in the public sector, although government purchases of technology will continue to lag behind much of the private sector. Similarly, IT expenditures in the natural resources industry are forecast to recover as the price of oil rebounds from recent lows.
Nation wise prediction
In terms of company size, more than 45% of all IT spending worldwide will come from very large businesses (more than 1,000 employees) while the small office category (the 70-plus million small businesses with 1-9 employees) will provide roughly one quarter of all IT spending throughout the forecast period. Medium (100-499 employees) and large (500-999 employees) business will see the fastest growth in IT spending, each with a CAGR of 4.4%.