Tag: IDC

The semiconductor industry is poised for a new wave of growth next year as the global demand for artificial intelligence (AI) and high-performance computing (HPC) boosts the sales of chips for smartphones, personal computers, and infrastructure.

According to bean counters at IDC, who have added up some numbers and divided them by their shoe size, the semiconductor sales market will bounce back in 2024 with a 20 per cent annual growth rate after a 12 per cent decline in 2023.

IDC said that the market slump in 2023 was due to weak demand and low inventory levels, which were not offset by occasional short orders and rush orders in the year’s second half.

However, it expects the market to recover in 2024, driven by the strong demand for AI chips used for data processing, complex language models and big data analytics in data centres and personal devices.

IDC Asia/Pacific senior research manager Galen Zeng said memory manufacturers’ tight control of supply and output has led to rising prices from the start of November, and the demand for AI across major applications will drive the overall semiconductor sales market to recover in 2024. Read more…

Global spending on digital transformation (DX) will reach $3.9 trillion by 2027, according to new figures from IDC beancounters.

This growth trajectory is underpinned by a five-year compound annual growth rate (CAGR) of 16.1 per cent, IDC thunk.

While the US is poised to command a significant 35.8 per cent share of global digital transformation spending in 2023, the Asia/Pacific region (including Japan and China) closely follows with a robust 33.5 per cent share. Read more…

Beancounters at IDC have added up some numbers and divided by their shoe size and concluded that GenAI software and related hardware and services are expected to see a massive surge in demand in the next few years.

In a new report, IDC predicts that worldwide spending on GenAI solutions will reach $16 billion in 2023 and grow to $143 billion in 2027, with a CAGR of 73.3 per cent. This is much faster than overall AI and IT spending.

IDC’s group vice president of worldwide artificial intelligence and automation market research and advisory services, Ritu Jyoti, said that GenAI is not just a hype but a game-changing technology that can transform industries and society. Read more…

Global PC shipments declined 13.4 percent year over year during the second quarter of 2023 (2Q23), according to preliminary results from the International Data Corporation (IDC)

According to IDC’s Worldwide Quarterly Personal Computing Device Tracker this was the sixth consecutive quarter of contraction brought on by macroeconomic headwinds, weak demand from both the consumer and commercial sectors, and a shift in IT budgets away from device purchases.

However, despite the poor showing, the market performed better than forecast for the quarter, IDC said.

The overall weak demand has caused inventory levels to remain above normal for longer than expected. This includes finished systems at the channel level, as well as the supply chain. Read more…

Spending on compute and storage infrastructure products for cloud deployments, including dedicated and shared IT environments, increased 14.9 per cent year over year in the first quarter of 2023, according to beancounters at IDC

The IDC Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment report says that spending on cloud infrastructure continues to outpace the non-cloud segment, with the latter declining 0.9 per cent in 1Q23 to $13.8 billion. Read more…

According to Beancounters at IDC, European IoT spending will climb to $227 billion in 2023, despite market uncertainty.

According to the Worldwide Internet of Things Spending Guide published by International Data Corporation (IDC). IoT-related spending is expected to expand at a five-year compound annual growth rate (CAGR) of 11 per cent, reaching almost $345 billion by 2027.

IoT development in Europe reflects enterprises’ evolving digital transformation investment objectives related to cost reduction, process streamlining, automation, and enhanced customer experience.

There are varying dynamics in regional markets. Central and Eastern European (CEE) organisations’ investments, for example, remain significantly below the European market average, with expected single-digit increases over the forecast period. In the last three years, many investments were put on hold in CEE, due to the various challenges related to the pandemic, the war in Ukraine, and the overall pressured macro-economic environment.

As IoT has proven to be integral to cost reduction, process optimisation, automation, and enhanced management and monitoring capabilities, IDC expects investments to accelerate by the end of the forecast period.

From an overall industry perspective, European IoT spending will be driven by investments from manufacturing, utilities, and professional services organisations.

Prominent use cases will include production asset management, distribution automation, and infrastructure for smart buildings. The fastest adoption of IoT will be seen across use cases such as irrigation management in the resources industry and fleet management in transport.

In terms of technology, modules and sensors will continue to drive IoT-related spending, followed by related services such as industrial maintenance to support the ongoing operation of device hardware (“things”), vertical business process outsourcing services, infrastructure as a service, and data as a service.

Low power wide area networks (LPWANs) will see the fastest-growing investments and will be a critical IoT area for telecom providers in the next few years. Spending on analytics software will also increase, as organisations strive to turn data collected by connection endpoints into actionable insights.

IDC’s European Data & Analytics Team research analyst Alexandra Rotaru said that due to the uncertain macroeconomic context, European organisations are expected to continue feeling pressure on budgets, with additional investments restrained in the short and medium term.

“However, IoT will remain a critical tool for improving performance and efficiency and increasing automation capabilities. It will continue to be a key investment area, helping organisations to reduce costs and enhance productivity despite challenges.”

The European software market grew by 15 per cent year on year in 2022 despite economic turbulence and global instability.

According to figures compiled by IDC, this is the highest growth in the last 20 years, demonstrating the resiliency of demand for software in the face of major macroeconomic factors.

IDC said the growth was primarily driven by increased prices of software licenses (reflecting high inflation), customers locked in with existing partners, and contracts signed for longer than in previous years.

In 2023, however, the European software market is predicted to grow at “just” 11.7 per cent owing to general caution across all sectors.

Although the five-year compound annual growth rate (CAGR) for 2022–2027 is expected to 12 per cent for the European software market overall, three main areas are predicted to grow substantially faster.

Artificial intelligence platforms has an expected CAGR of 41 per cent (reflecting a 16 times increase from 2018 to 2027), followed by integration and orchestration middleware with a CAGR of 24 per cent and software quality and life cycle tools with a CAGR of 20 per cent, IDC said..

Beancounters at IDC have added up some numbers and divided by their shoe size and concluded that overall IT spending will rise 4.8 per cent to $3.27 trillion, which is a slight improvement on last month’s predictions.

IT services growth should hit almost six per cent, driven largely by enterprises remaining committed to long-term digital transformation investments, IDC thunk.

Overall software spending growth will be almost 11 per cent, driven mostly by cloud software revenues which will increase by 19 per cent. This is a slowdown from last year’s cloud software growth of 25 per cent and growth of public cloud IaaS will also slow compared to last year. Read more…

Beancounters at analyst outfit IDC have been adding up some numbers and reached the conclusion that IT spending worldwide is on a downward trend.

In its new monthly forecast for worldwide IT spending growth, IDC projects overall growth this year in constant currency of 4.4 per cent to $3.25 trillion

This is slightly down from 4.5 per cent in the previous month’s forecast and represents a swing from a 6.0 per cent growth forecast in October 2022.

IDC vice president Stephen Minton said that since the fourth quarter of last year, we have seen clear and measurable signs of a moderate pullback in some areas of IT spending.

“Tech spending remains resilient compared to historical economic downturns and other types of business spending, but rising interest rates are now impacting capital spending.”

After reductions to PC forecasts a month ago, IDC has now scaled back its expectations for some additional hardware categories including servers, wearable devices, and peripherals. Read more…