2014-01-26 18:27:36 - Recently published research from Business Monitor International, "United States Information Technology Report Q1 2014", is now available at Fast Market Research
The outlook for US IT spending remains strong relative to the majority of developed markets over the medium term as a result of stronger economic performance and a greater appetite from enterprises for the latest products and solutions. Cloud computing, real-time enterprise software, security and Big Data are all areas of spending in which we expect to see rapid growth. We also expect continued demand growth for tablets in the retail market, however there is downside risk as desktop and notebook sales continue to be squeezed. There is also downside to this outlook from the potential for deeper fiscal retrenchment to hit government IT spending, the NSA PRISM scandal to disrupt the cloud computing market and a downturn in the
wider economy. Total spending is expected to reach US$588bn in 2013, up 6.6% from 2012, and grow at a CAGR of 5.1% to 2017.
Full Report Details at
- www.fastmr.com/prod/760720_united_states_information_technology_ ..
Headline Expenditure Projections
* Computer Hardware Sales: US$144bn in 2012 to US$152bn in 2013, an increase of 4.7%. Booming tablet sales are driving growth while desktop and notebook sales are under pressure from cannibalisation.
* Software Sales: US$161bn in 2012 to US$173bn in 2013, an increase of 7.6%. Forecast in US dollar terms unchanged. Emerging technologies such as machine-to-machine and Big Data are being adopted by enterprises, while demand for cyber security solutions is also an area of growth.
* IT Services Sales: US$246bn in 2012 to US$263bn in 2013, an increase of 7.2%. Cloud computing adoption is already high in the US but we expect strong growth to continue over the medium term.
Key Trends & Developments
The US retail hardware market fared better than other developed markets in 2013 as sales of tablets boomed while the squeeze on desktop and notebook sales was less pronounced, particularly compared to Europe where economic crisis has added to the detrimental impact of tablet cannibalisation. Overall tablet sales continue to drive the hardware market, with the latest data from Pew Research Centre showing penetration reached 34% of the adult population in May 2013, up from just 14% a year earlier. Although tablets offer continued growth potential as penetration rates rise, we expect growth to slow. Vendors will need to offer new features if consumers are to accept short replacement cycles and upgrade devices in quantities sufficient to offset the slowdown from diminished first-time buyer opportunities.
Cloud computing has been a leading theme in the US IT market in recent years as local enterprises have adopted more complex solutions, however the market is subject to uncertainty as a result of revelations around the National Security Agency (NSA) PRISM intelligence gathering programme. Surveys in 2013 showed that the scandal has hurt the prospects of US cloud providers internationally, most notably in Europe; however, the domestic market appears to be relatively unscathed. Nonetheless, cloud providers are concerned about the impact of the government's activities on their growth prospects in a rapidly developing market.
Report Table of Contents:
The table of contents for this report is available upon request.
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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