The IT market is proving to be robust even in economically difficult times, but will grow less than IDC originally assumed. The consumer market will certainly be hit.

IDC assumes that the IT market as a whole will grow by 4.4 percent to $3.25 trillion by 2023. That doesn’t sound like bad news. The global economic situation is challenging, with significantly less growth than at the end of the corona pandemic. In fact, IDC notes that the IT market is generally very resilient, especially when compared to other business spend. Nevertheless, there are noticeable effects: analysts were more optimistic last month and still expected growth of 4.5 percent.

down trend

“Since the fourth quarter of last year, we have seen clear and measurable signs of a slight slowdown in some areas of IT spending,” said Stephen Minton, vice president of Data & Analytics research group at IDC. The result is five straight months that IDC has lowered its expectations.

The problem is mainly on the consumer side of the market. In 2023, it would shrink by two percent for the second year in a row. On the other hand, tough economic weather hasn’t really stopped companies from investing in cloud and digital transformation. According to Minton, on-site infrastructure will not fare as well this year.

It is above all the investments in cloud and hardware by hyperscalers that are supporting the market. IDC has previously spoken negatively about the PC market.