The global IT spending on enterprise software set to reach US$426bn in 2020, with many businesses in the IT sector keen on implementing innovatrive measures to keep entitites running during this pandemic, according to data obtained by Buyshares.co.uk
The spending reached an all-time high of US$458bn in 2019, translating to a drop of about 6.98 per cent when compared to the projected figures for 2020. The spending for 2020 will reach US$426bn, the first drop in 10 years, breaking an upward trajectory that began in 2009.
Between 2009 and the estimates of 2020, the spending stands at US$3.94 trillion. The lowest spending in the sector was in 2009 when the figure stood at US$225.51bn.
In 2018, the spending was US$419bn, an increase of 13.55 per cent from 2017’s figure of US$369bn. Between 2014 and 2015, the spending stagnated at US$310bn before a slight increase to US$316bn in 2016.
The Buyshares.co.uk research attributes the projected decline in spending to coronavirus. According to the report, “The coronavirus crisis has forced many sectors of the economy to prioritise important aspects of their operations, explaining the drop in enterprise software spending. Many businesses in the IT sector are keen on implementing measures that can keep their entities running during this pandemic. This strategy is replicated across the various business for 2020.”
Buyshares.co.uk's research has further overviewed the estimated revenue of the US software publishers between 2005 and 2019. Last year had the highest revenue at US$284.66bn, a growth of 144.05 per cent from 2005 when the amount stood at US$116.64bn. During the period under review, the total revenue was US$2.6 trillion.
The revenue has been growing steadily but there was a slight drop in 2009 when the figure stood at US$138.98bn, a decline of about 2.62 per cent from the previous year. The growth has been fuelled by increasing investment in the IT sector alongside the popularity of mobile devices.
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