SMB IT spending to grow by 5.4% YoY to $1.5 trillion in 2023
In its latest update of its SMB Technology Forecaster, Analysys Mason predicts that IT spending by small and medium-sized businesses (SMBs) will grow at a CAGR of 7.2% during the period between 2022 and 2027.
Our forecast includes the following key findings.
- SMBs will be cautiously optimistic throughout 2023. Global economic challenges mean that SMB IT spending is expected to slow down, and SMBs will be more selective about how they invest in IT throughout 2023.
- Critical shifts in key category priorities. SMBs will continue to invest in IT solutions that support hybrid work environments. However, IT priorities will focus on solutions such as managed services, cloud infrastructure and cyber security.
- Partner ecosystem transformations. Strategic partners will be SMBs’ preferred purchase channels. SMBs will shift their IT purchases to channel partners that can assist with their digital transformation initiatives and business continuity. Strategic advice and value-added service/support will be a key selection criteria when choosing partners.
- Bounce back spending is expected from 2024. The rate of SMB IT spending growth worldwide will increase to 6.9% year-on-year in 2024 and will continue to rise to 8.3% year-on-year by 2027.
Commenting on the forecast, Bob Takacs, Research Director and leader of Analysys Mason’s SMB IT Channels and Forecasts practice, said, “Our latest forecast tracks the impact of the economic and political uncertainty on SMB’s IT purchase behaviours. SMBs have been on a transformation path since early 2020 and their priorities and needs have changed rapidly as the business environment changed. These priorities are now being impacted by the current economic and political uncertainties.”
“Our latest forecast includes the impact of current macroeconomic headwinds and tailwinds, which have led to a more conservative IT spend growth forecast for 2023.” He added that, “Given the transformation of the SMB ecosystem and response to macro events, this update of the SMB Technology Forecaster is an essential resource for any business leader operating in the SMB space.”
The SMB Technology Forecaster helps IT vendors and telecoms operators to pinpoint areas for revenue growth and provides granular insights into SMB IT spending through five lenses that include: technology category, country, employee size, industry vertical and sales channel.
You must be logged in to post a comment Login