ICT spending on hardware, software, services, and telecommunications will achieve a CAGR of 3.8 percent over the 2019-2023 forecast period, reaching $4.8 trillion in 2023.
This is despite a slowing global economy and the looming trade war between the United States and China.
The IDC report said confidence indicators are fluctuating on a monthly basis, depending on short-term indicators ranging from speculation over tariffs and trade wars to political wild cards, with a potential global slowdown looming for 2019 and 2020.
Serena Da Rold, program manager in IDC Customer Insights and Analysis group, said digital transformation and the adoption of automation technologies will be driving investments in applications, analytics, middleware, and data management software, as well as increasing demand for server and storage capacity.
Commercial purchases will account for nearly two thirds of all ICT spending by 2023 against 60.4 percent in 2018 and growing at a solid five-year CAGR of 5.1 percent.
Banking and discrete manufacturing will be the industries spending the most on ICT over the forecast period followed by professional services, which will also see the fastest growth in ICT spending, driven largely by service provider spending.
Media and personal and consumer services will also grow as these companies transform their businesses to offer new services and improve customer experience.
While purchases for planned upgrades and refresh cycles will continue to be the largest driver of commercial ICT spending.
Digital transformation (DX) spending will reach $1.18 trillion in 2019, IDC recently said in another report.
Consumer ICT spending will grow at 1.5 percent CAGR resulting in a loss of share over the five-year forecast period. Consumer spending will be dominated by purchases of mobile telecom services and devices such as smartphones, notebooks, and tablets.
The United States will be the largest market with ICT spending forecast to reach $1.66 trillion in 2023. Western Europe will be the second largest region with $927 billion in ICT spending in 2023, followed by China at $618 billion. China will also be the fastest growing region with a five-year CAGR of 6.1 percent.