Discrete Manufacturing Industry Leads in Worldwide IT Spending, According to New IDC Study on Vertical Markets
FRAMINGHAM, Mass., January 11, 1999 — Which vertical markets spend the most on IT worldwide? Conventional wisdom would say banking, but a new study from IDC has shown that the discrete manufacturing industry spends 7% more on IT products and services than the banking industry in North America, Western Europe, and Asia Pacific. Asia Pacific presents the most dramatic case with the discrete manufacturing businesses out-spending banks by two to one in 1997.
This surprising finding is just one of the trends quantified in IDC's new vertical market study, including the variation of growth rates across vertical markets worldwide, and the proportions of IT investments in the 10 categories of hardware, software, and IT services.
"Although relative IT spending shares among vertical markets in all three regions show some consistency, our research reveals that the vertical markets growing the fastest in each region diverge," said Nicole Comiskey, a senior analyst with IDC's Global Research Services group. In Asia/Pacific, the banking and financial markets are expected to post the strongest growth, while in Western Europe, the retail and banking sectors will take the lead. The discrete manufacturing and services markets will grow the fastest in North America.
"Though IT spending patterns in North America vary considerably from vertical to vertical, the Western European vertical markets all display similar trends, spending 40% on hardware, 20% on software, and 40% on IT services," said
Stephanie Hutchison , a senior analyst with IDC's Global Research Services group. "It is likely that this pattern has developed as a result of each market's need to address the Y2K and Euro issues. Similar trends run through Asia/Pacific's vertical markets, with most focusing on the hardware and IT services sectors."
This new IDC report, North America, Western Europe, and Asia/Pacific IT Spending Patterns: A Report by Industry Sector (IDC # 17545), is created from primary research completed by 300 IDC analysts in 44 countries around the world. It is the culmination of the largest vertical market research effort IDC has ever undertaken.
In addition, the new report is also based on three of IDC's ground-breaking worldwide research efforts: the Worldwide Black Book, the U.S. Vertical Market Model, and the Global IT Survey. The Worldwide Black Book provides a detailed analysis of IT spending by technology area in over 50 countries. The IDC U.S. Vertical Market Model distributes IT spending into 16 major industry categories plus a consumer segment. IDC's Global IT Survey is an annual primary research study of information technology directions and spending patterns, consisting of nearly 12,000 in-depth interviews from around the world. It focuses on IT spending patterns in North America, Western Europe, and Asia/Pacific. Anticipated spending levels and market sizes by industry and by product category are established and projected out five years to 2002.
The report is available for purchase by contacting Cheryl Toffel at (508) 935-4389 or email@example.com. For more information about IDC's Global Research Services program, please contact either Beth Freedman or Lisa Bloom at (508) 872-8200.
International Data Corporation is the information technology industry's most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis and advisory services to the world's leading IT suppliers as well as IS professionals in finance, insurance, entertainment, advertising, consumer goods and publishing. IDC's research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at http://www.idc.com.
IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.
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