Why the world tech sector is poised for major growth in 2014

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The tech spending outlook for 2014 is better than 2013

On Wednesday, April 2, Gartner released its worldwide tech industry outlook for 2014. It mentioned that worldwide IT spending will increase from $3.65 trillion in 2013 to $3.77 trillion in 2014, at a growth rate of 3.2%. This growth is much better than the growth of just 0.4% this industry saw in 2013. Richard Gordon, managing vice president at Gartner, mentioned, “Globally, businesses are shaking off their malaise and returning to spending on IT to support the growth of their business.”

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According to the report, the devices market will grow from $660 billion in 2013 to $689 billion in 2014, the data center systems market will grow from $140 billion to $143 billion, the Enterprise software market will grow from $299 billion to $320 billion, the IT services market will grow from $922 billion to $964 billion, and the Telecom services market will grow from $1,633 billion to $1,655 billion between 2013 and 2014.

Technology spending outlook

Trends to look forward to for the tech sector in 2014

According to Gartner, in the devices market, the most important trend in 2014 will be a preference to buy cheap and capable mobile products, predominantly on Google’s (GOOG) Android operating system rather than on Apple’s (AAPL) premium products. An important trend to look out for in the telecom market will be increased importance of the mobile data segment rather than voice services, which have fallen in price. Telecom giants like Verizon (VZ) and AT&T (T) will increasingly depend on the mobile data segment for their growth.

Within the Enterprise software market, spending on database management systems (DBMS) will surpass spending on operating systems, making DMBS the largest segment of the Enterprise software market. This should have positive implications for Oracle (ORCL), which is the largest player in DBMS market. In the Data Center systems market, cloud and mobility will be the biggest demand drivers in 2014. So companies like Cisco, (CSCO) and IBM (IBM) should gain from this trend, as they plan to spend more on cloud services products in 2014. In the IT services market, the trend in 2014 will be a shift in spending from consulting (planning projects) to implementation (doing projects).

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