IT spending by enterprises, SMBs and others is forecast to reach $2.7 trillion in 2020, according to a report from IDC.
The research firm expects the bulk of IT spending to come from the discrete manufacturing, banking, and telecom verticals. Combined, these industries will generate nearly a third of all IT revenues throughout the forecast.
Healthcare remains the fastest growing vertical industry over the forecast period with a five-year compound annual growth rate of 5.7 percent. Banking, media and professional services are tied for second with CAGRs of 4.9 percent.
In terms of size, over 45 percent of IT spending will come from enterprises with more than 1,000 employees. Big industries like financial services and manufacturing will continue to invest in cloud, mobility, and big data as part of their ongoing digital strategies, IDC says.
The majority of IT spending will go toward software, according to the report. Hardware is expected to remain a large contributor to the segment overall, but reduced consumer spending on PCs, tablets and smartphones could still weaken the IT market.
The SMB category will account for roughly one quarter of all IT spending, but that figure could potentially climb higher as smaller companies invest in more enterprise-level tech such as cloud and machine learning.
“Enterprise investment in new project-based initiatives, including data analytics and collaborative applications, remains strong and mid-sized companies have been especially nimble when it comes to rapidly adopting 3rd Platform technologies and solutions,” said Stephen Minton, VP of Customer Insights and Analysis at IDC.