IT distributor revenues in North America grew by 2.3 percent, reaching $21.4 billion in the fourth quarter of 2024, according to IDC.
Key product categories that contributed to growth in Q4 included Software, which increased by 9.7 percent, and Personal Computing, which exceeded expectations with 16.2 percent growth. These gains helped mitigate declines in Services, which fell by 5.5 percent, and Network Infrastructure, which experienced a 6.0 percent drop.
Software revenue demonstrated steady growth, rising from 8.4 percent in Q2 to 9.7 percent in the latter half of 2024, while other categories experienced more dramatic fluctuations due to post-pandemic shifts and new market dynamics.
Personal Computing saw a surge in Q4, driven by increased AI-related spending, commercial replacements, and companies making purchases in anticipation of potential tax increases. In contrast, Network Infrastructure revenue continued to decline as the market adjusted to the surge experienced in 2023, with order reductions and new inventory deployment impacting sales.
Personal Computing revenues returned to normal levels in 2024 following a substantial contraction in 2023. The sector recorded $3.75 billion in sales during Q4, largely driven by AI PC configurations, which saw growth of 141 percent. The top five brands in this segment all posted double-digit growth, with HP leading at 25.8 percent. This rebound signals renewed momentum in the market as businesses and consumers invest in AI-enabled computing solutions.
Software sales in Q4 reached $4.55 billion, with Security Software and Storage Software accounting for more than 40 percent of the total software revenue. These two categories saw growth rates of 6.2 percent and 13.4 percent, respectively.
However, the standout performer in the software segment was Physical and Virtual Computing Software, which surged by 82.1 percent. Among the top vendors in this category, VMware and Citrix recorded extraordinary growth rates of 350 percent and 218 percent, respectively, highlighting their increasing prominence in the market.
These trends underscore the evolving landscape of distributor revenues, where AI-driven computing solutions and security-focused software continue to drive significant growth, while infrastructure and services adapt to shifting demand and market conditions.
