All in all, IDC forecasts that the market will continue to grow in the coming years, with a constant rate of increase of between 4% and 5%, driving the long-term growth rate of the market to 4.6%, compared to 4 .3% established in the previous forecast. If you’re looking for IT Services and Software development services, then visit devteam.inc.
The services market of the American continent has a growth forecast for 2022 of 5.3%, due to a faster-than-expected economic rebound, as well as the impact of inflation. IDC expects that over the next five years, the industry’s annual growth rate will be around 4%. As for Europe, the region most impacted by the invasion of Ukraine, its Central and Eastern regions have the most significant reduction in the forecast for the coming years due to the conflict.
Thus, IDC expects it to grow 5.5% in 2022 and 7.3% in 2023, compared to previous forecasts, which placed this growth between 9% and 10%. The Russian and Ukrainian markets are expected to contract significantly this year.
The forecasts for Western Europe have been adjusted Also, but upward. Thus, IDC now expects the aforementioned markets to grow in the region by 6% in 2022, especially due to the revised forecast of GDP for 2022 made at the end of 2021, yes, when the invasion of Ukraine had not yet begun. Regardless, IDC still expects EU-funded investments to drive spending on services. In addition, inflation has also contributed to nominal growth, although to a lesser degree.
All this has been impacted in part by the war. In March, IDC pointed to a scenario with limited military escalation and impacts on the global supply chain, somewhat more neutral than the one that has finally occurred. Even so, the consultancy believes that the crisis will reduce the growth of the market in Western Europe in the medium term, but this will be offset by other factors. Of course, he also admits that as the situation is constantly evolving, the impact it may have on the EU economy may be greater than expected.
As for the situation in Middle East and Africa, its growth forecasts for 2022 and 2023 have also increased, due to a strong rebound from the pandemic and economic problems. Especially in markets like Turkey. Also because of the rapid investment in IT infrastructure, and because everything indicates that the negative impact of the invasion of Ukraine will be marginal.
The growth forecast in Pacific Asia it improved by 0.9% for 2022, mainly due to the improvement forecast for China and other developed Asian markets, such as Australia, Japan, Singapore or South Korea. As an example, a button: the growth forecast in Japan for the next five years has improved between 0.2% and 0.6% for each year.
The growth forecast for China in this market has been adjusted upwards for 2022 and 2023, years in which the market is expected to grow by 6.4% and 8%. Although China’s GDP growth is expected to slow, IDC believes that digital transformation remains key to initiatives related to the country’s new infrastructure in the long term. This will boost investment in services both in the public sector and in other strategic ones, such as manufacturing or energy.
Within the IT and business services markets in all regions, the investment in cloud-related services has been biggest growth accelerator since 2020. And according to IDC, it is expected to continue growing close to 20% year-on-year by 2022, and to maintain its growth between 15% and 20% for the next three years.