Feeds

US propels global technology market to $2 TREEELION in 2013

Forrester says Asian buying will slow, but overall spend on upwards trend

Choosing a cloud hosting partner with confidence

The US will be the primary driver of global growth in the technology market in 2013 and 2014, with Asia Pacific spend contracting thanks to a slowdown in India and China and a strong US dollar, according to analyst house Forrester.

The firm’s latest report A Mixed Outlook for the Global Tech Market In 2013 and 2014, claims that global growth will be 2.3 per cent to reach $2.1 trillion this year before climbing up to 5.6 per cent in 2014.

US CIOs should expect spending to grow 5.9 per cent this year and 6.9 per cent next, while in APAC there’ll be a decline of 3.2 per cent (when measured in US$) in 2013 before a rebound to 3.7 per cent growth in 2014.

APAC has in recent years been something of a global technology growth engine, but the cracks have started to show in the past 18 months, with Gartner's Q2 2013 PC shipment predictions pointing to a disappointing year-on-year decline of 11.5 per cent.

Some of the blame for APAC’s poor 2013 performance is laid at the feet of the two huge markets of India and China. The former’s predicted growth rate of 5.8 per cent will fall short of 2010/11 levels, Forrester said, while the PRC will drop to 7.4 per cent by 2014:

The report had the following less than enthusiastic take on happenings in the Middle Kingdom:

We and other economists had expected that China’s new political leadership would take decisive steps to re-ignite growth after its sub-par growth of 7.8 per cent in 2012. So far, though, the Chinese economy is showing the same signs of lagging consumer spending, deflating property values, and tapped-out capital investment, with real GDP projected to grow by 7.5 per cent in 2013.

The report pointed out that exchange rates have played a big part in its forecasts, however, with APAC actually predicted to grow 4.3 per cent when calculated in local currencies, but tipped into negative growth when measure in US dollars.

The US$ is particularly strong against a Japanese yen being deliberately devalued by Abenomics, meaning CIOs in the Land of the Rising Sun should be especially cautious until longer term effects can be seen, Forrester advised.

As for Australian CIOs, the Aussie dollar will be relatively flat against the Greenback with growth dropping a percentage point in 2013 to a “still healthy” 2.5 per cent and then up slightly to 2.8 per cent the following year.

The report had the following advice:

CIOs in Australia should also be watching how much they expand their tech budgets until it becomes clear that China – the biggest market for Australia’s natural resource exports – is on a solid growth path. CIOs in China face a different question – whether and how much to slow the breakneck pace of their tech buying in the face of tightening bank lending and other signs of a Chinese economy that can’t decide whether to grow at 9 per cent or at 6 per cent.

®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.