Global spend on IT devices to plunge by $108bn in 2020
17 June 2020 | 0
Global IT spending has plunged 8% in 2020 as companies cut their technology and service budgets and finance only essential IT costs amid the Covid-19 pandemic.
Although the entire sector is forecast to shrink, data gathered by LearnBonds suggested that IT devices and data centre systems could witness the most significant drop in consumer spending this year. Global spend on IT devices has been forecast to fall by $108 billion year-on-year, to $590 billion in 2020.
Revenue falls 15.5% in 2020
According to data from Statista and Gartner, consumers worldwide spent $676 billion on IT devices, including PCs, ultramobiles, tablets, mobile phones, and printers in 2012. By the end of 2016, this value dropped to $630 billion. Over the next two years, global spend on IT devices rose to $712 billion, which was a six-year high.
LearnBond noted that while this value slightly decreased to $698 billion by the end of 2019, the ongoing pandemic has triggered an IT industry recession, with even large tech companies such as IBM, HP, or Lenovo, witnessing a decline in sales and tumbling stock prices.
Gartner data revealed that global consumer spending on IT devices is expected to plummet to $590 billion in 2020, down 15.5% year-on-year.
“IT spending recovery will be slow through 2020,” said vice president of Gartner, John-David Lovelock, “with the hardest hit industries, such as entertainment, air transport and heavy industry, taking over three years to come back to 2019 IT spending levels.”
Computing revenue to tumble by $14.3bn
Aside from observing a significant decrease in the IT device consumer spending, statistics forecast a substantial fall in global computing industry revenue in 2020. The market, which includes retail sales of laptops, tablets, desktop PCs, storage units, PC monitors, and keyboards, hit $278.9 billion in revenue last year. Due to the outbreak of Covid-19, this value is expected to slump to $264.6 billion in 2020, a $14.3 billion drop in a year.
As the largest revenue stream of the entire market, laptops and tablets sales are forecast to decline by 9.7% year-on-year, falling from $171.6 billion in 2019 to $161.9 billion in 2020. Desktop PCs sales revenue is forecast to plunge by $1.6 billion year-on-year, while storage unit revenue is forecast to fall by $1.2 billion in 2020.
LearnBonds added that statistics imply that consumers globally are expected to reduce their spending on PC monitors and projectors by more than $1 billion this year, while keyboards and printers could see a $200 million, and $500 million drop in revenue, respectively.