Manufacturing Is IT’s Biggest Customer, Finance and Business Services Are Among the Fastest Growing, IDC Says
FRAMINGHAM, MA – JUNE 20, 2001 – A trillion-dollar opportunity awaits vendors of IT products and services. According to IDC, worldwide IT spending will climb from $995.7 million in 2000 to more than $1.4 trillion in 2004. The global market intelligence and advisory firm warns, however, that opportunity will vary by region, industry, and type of IT product or service.
"Vendors seeking to capitalize on the worldwide IT market must understand the dynamics of the local markets they are competing in," said Lusia Bordoni, vice president of IDC’s Vertical Markets research. "They also must realize technology plays a unique role in each industry and even further, an industry in the Middle East might have very different technology adoption priorities than that same industry in North America."
Discrete manufacturing currently represents the largest opportunity for IT vendors worldwide, and it will through 2004. IDC forecasts discrete manufacturing’s IT spending will increase from $142 million in 2000 to $207.4 million in 2004.
The communications, business services, resource industries, and financial services industries will increase their IT spending faster than other industries during this time.
"The impact of the Internet, competitive pressure, and radical changes in business models make it critical for these industries to implement innovative IT solutions quickly," said Anne Songtao Lu, senior analyst for IDC's Worldwide Vertical market research.
IDC believes IT spending will shift toward IT services through 2004. Hardware captured the bulk of worldwide IT spending in 2000 with $424 million. IT services captured the second-largest amount with $385 million. Software was third with $183 million. Discrete manufacturing was the biggest hardware and software spender, and banking was the largest IT services customer.
By 2004, IT spending on IT services for banking, insurance, financial markets, and manufacturing will edge out spending on hardware or software.
"Business services, communications and media, and financial services will be key industries for IT service vendors," Bordoni said. "IT services investments will enable companies in these industries to realize cost savings and give them time to address their core issues with a superior level of expertise."
IDC’s recent report, Worldwide Vertical Markets: Americas, EMEA, and Asia/Pacific (IDC #B24554), forecasts IT spending by industry and product type in North America; Latin America; Europe, the Middle East, and Africa; and Asia/Pacific. The report discusses factors driving industry growth in each region, including specific regional short-term dynamics expected for GDP and capital investment.
To purchase the report, contact Cheryl Toffel at 1-800-343-4952, extension 4389, or at firstname.lastname@example.org.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
# # #
All product and company names may be trademarks or registered trademarks of their respective holders.