IDC Projects Slow Growth in U.S. IT Spending With Current and Future Market Opportunities Varying by Vertical Industry
FRAMINGHAM, MA – APRIL 28, 2003 – U.S. IT spending will be $372 billion in 2003, a slight increase of 1.5% from 2002, according to current estimates from IDC. Over the next five years, IDC expects spending will increase at a moderate compound annual growth rate (CAGR) of 4.9%, reaching $467 billion by 2007. IT spending across the vertical industries will present a more diverse picture. While some industries are experiencing an information technology investment freeze, others are more resilient and dedicated to ongoing IT investments.
"Although U.S. IT spending is growing at a slower pace overall, the current and future opportunities widely vary by vertical industry,"said Anne Lu, senior analyst for worldwide vertical markets at IDC. “Government spending is currently more stable, with healthy growth expected across the forecast years compared with other vertical industries, which are more vulnerable to the cycles of the economy."
Key trends in the IT vertical market forecast presented in IDC's new study include the following:
The manufacturing and financial industries account for almost half of the IT opportunity.
The biggest increases will be felt in the government, discrete manufacturing, and resource industries. With its dedication to technology investment, ongoing egovernment initiatives, and homeland security issues, government will continue to exhibit positive growth throughout the forecast years.
The largest vertical markets for information technology reside in discrete manufacturing, banking, government, and services and are driven by the steady profitability in biopharmaceuticals and medical device manufacturing, as well as the need to replace legacy applications with packaged applications and Web-enabled business processes.
Business integration of all forms continues to command IT investment from corporate budgets.
IDC believes that firms wishing to capitalize on the market opportunities in specific vertical industries should be prepared to address key issues within these industries. For example, the increasing weight of check images will create brisk demand for IT spending in the banking industry. Similarly, financial institutions are seeking proven tools that will enable these organizations to conduct wealth management more efficiently.
The IDC study, U.S. IT Spending Forecast by Vertical Market, 2003-2007, (IDC #29080), presents a preliminary five-year forecast (2003–2007) for U.S. information technology spending within 17 vertical markets. The study provides IT opportunity forecasts, as well as analysis of the ways in which recent trends are affecting IT spending, for the following vertical markets: banking, insurance, financial services, discrete manufacturing, process manufacturing, communications and media, retail, wholesale, transportation/transportation services, services, utilities, construction, resources industry, healthcare, education, government, and consumer/household.
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