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Gartner’s 4 Biggest IT Sales Growth Markets For 2023

Joseph F. Kovar

‘Enterprise IT spending is recession-proof as CEOs and CFOs, rather than cutting IT budgets, are increasing spending on digital business initiatives,’ says John-David Lovelock, distinguished vice president analyst at Gartner, in a statement.

Market research firm Gartner expects total worldwide IT spending in 2023 of $4.66 trillion, a 5.1-percent increase over the $4.43 trillion it estimated for 2022.

2023 IT demand is forecast to be strong as enterprises continue their digital business initiatives despite the current economic environment, said John-David Lovelock, distinguished vice president analyst at Gartner, in a statement.

[Related: 10 Midsize Enterprises Reveal Their 2023 IT Spending Priorities]

“Enterprise IT spending is recession-proof as CEOs and CFOs, rather than cutting IT budgets, are increasing spending on digital business initiatives,” Lovelock said. “Economic turbulence will change the context for technology investments, increasing spending in some areas and accelerating declines in others, but it is not projected to materially impact the overall level of enterprise technology spending.”

However, Lovelock said, inflation has cut consumer purchasing power worldwide.

“Consumer purchasing power has been reduced to the point that many consumers are now deferring 2022 device purchases until 2023, driving spending on devices down 8.4% in 2022 and 0.6% in 2023,” he said.

Gartner’s 2023 forecast for 2023 worldwide IT spending to rise 5.1 percent is actually lower than earlier predictions. Gartner in July forecast total 2023 worldwide IT spending would rise by 6.1 percent to $4.81 trillion compared to over its estimate of 2022 spending at $4.53 trillion.

Gartner’s worldwide IT spending forecast comes on the heels of a July 2022 survey Gartner did of over 200 chief financial officers which found that 69 percent of them expect to increase their spending on digital technologies, which the analyst firm said is in direct contrast to conventional wisdom that IT spending might fall in an economic downturn.

Spending is shifting from buying technology on its own towards technology, including cloud, for specific purposes, Lovelock said.

“As organizations look to also realize operations efficiency, cost reductions and/or cost avoidance during the current economic uncertainty, more traditional back-office and operational needs of departments outside IT are being added to the digital transformation project list,” he said.

Out of the five markets that Gartner highlights, only one is predicted to contract: devices. Click through our slideshow for more details on the IT sales trends for 2023, according to Gartner.

 
Joseph F. Kovar

Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at jkovar@thechannelcompany.com.

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