Gartner Announces 2020 Global IT Spending Forecast
Continued growth of enterprise software through the adoption of Software as a Service
Domestic IT spending increased by 4.8% year-on-year to 69.5 billion won.

Global IT spending in 2020 is expected to reach $3.9 trillion, up 3.4% from 2019, and is projected to reach $4 trillion in 2021.

Expenditure on IT products and services in the domestic market is projected to reach 82 trillion won, a 6.2% increase from the previous year, and surpass 85 trillion won in 2021. Enterprise software is expected to become the fastest-growing sector in the country, recording a growth rate of 10.4% in 2020.
Gartner announced its outlook for global IT spending in 2020 on January 20. According to Gartner, although the current global economy is facing a recession due to political uncertainty, the likelihood of a recession after 2020 is considered low, given that there was no economic recession in 2019.

As global uncertainty eases, companies are strengthening their investments in IT while expecting profit growth.

While corporate spending patterns are constantly changing, software is expected to become the fastest-growing major market, recording double-digit growth of 10.5% in 2020.

John David Lovelock, Vice President of Research at Gartner, said, “The adoption of Software as a Service (SaaS) is driving most markets using enterprise software,” adding, “Spending on non-cloud forms of software is expected to grow slowly but steadily, and as sales and usage of license-based software continue to expand through 2023, spending on SaaS will increase.”

He added, “By improving the cloud environment, companies can increase the return on cloud investments through cost reduction, improved agility and innovation, and enhanced security,” and noted that “this spending trend is expected to continue.”
In fact, the strength of the U.S. dollar acted as a factor suppressing IT spending on devices and data center equipment in the relevant countries. As a result, spending on PCs, printers, and external storage systems in the UK is expected to decrease by 3%.

Although the device market experienced the sharpest decline among all sectors in the last quarter, it is expected to turn to growth in 2020 as emerging markets, including Greater China, focus on new and affordable mobile phone options.

"Vice President Lovelock said, 'The increase in device spending of nearly $10 billion in Greater China and emerging Asia-Pacific countries will sufficiently offset the expected losses in Western Europe and South America.'"