Telecom equipment spending could rise 10.8 percent to $377 billion this year, according Gartner Inc. The prestigious market researct firm forecasts that growth will continue throughout 2013 when spending will increase by 8.3 percent to $408 billion.
“While the challenges facing global economic growth persist—the eurozone crisis, weaker U.S. recovery, a slowdown in China—the outlook has at least stabilized. There has been little change in either business confidence or consumer sentiment in the past quarter, so the short-term outlook is for continued caution in IT spending,” said Richard Gordon, research vice president at Gartner.
However, telecom services spending will not fare nearly as well, according to Gartner. 2012 telco service growth will only be 1.4% this year to $1,686B. And 2013 growth will still be paltry at 2.3% to $1,725B. The global telecom services market continues to be the largest IT spending market. Telecom services growth is expected to come not only from net connections, especially in emerging markets, but also in mature markets from the uptake of multiple connected devices, such as media tablets, gaming and other consumer electronics devices.
Telcos could also reap some benefits as more businesses and govenment agencies start to adopt cloud computing services. Gartner predicts that enterprise spending on public cloud services will grow from $91 billion worldwide in 2011 to $109 billion in 2012 to reach $207 billion in 2016. That’s somewhat surprising since other market research firms predict more robust growth for private cloud services, due to concerns about performance, security and failure recovery.
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Atleast telecom spending on equipment and services is doing better than PC spending. Worldwide PC sales remained virtually flat in the second quarter, according to a new Gartner report.
Gartner principal analyst Mikako Kitagawa said in a statement that the PC market in Q2 “suffered through its seventh consecutive quarter of flat to single-digit growth.” Kitagawa attributed the key reasons for this sales performance to economic uncertainty in some regions and a dropping interest on the part of consumers for PCs.