Security News > 2023 > April > IT and business services market shows resilience with positive growth outlook

The mid- to long-term outlook for the market has also been increased slightly - the five-year compound annual growth rate is now projected to be 5.2%, compared to the previous forecast of 4.9%. IDC has raised the growth projection despite a weak economic outlook largely because of stronger than expected vendor performances across the 2022 finish line, growth indicators from adjacent markets, increased government funding, and, to some extent, inflation impacts.

The US market's actual growth in 2022 was adjusted up by almost 1.17 percentage points compared to the previous forecast and is now at 6.2%. The US software market's forecasted growth and hardware installed base also remain strong.

For LATAM, mid- to long-term growth was reduced, but 2022 and 2023 growth rates were raised slightly.

2023 growth rates are now 5.3% for Europe and 5% for MEA. Most large markets in Europe saw 2022 market growth that was stronger than expected, but IDC remains cautious about their near-term growth, given inflation and economic and geopolitical instability.

The growth outlook for Asia/Pacific was adjusted upward by around 100 basis points each year for the next four years, largely driven by an improved economic outlook and foreign capital inflow.

Japan's outlook also improved, now to 3.5%-4%. Largely due to the government's fast opening up in late 2022, China's economic outlook improved markedly; therefore, China's services market's near-term growth is now projected to be around 8.5%, an increase from the previous forecast of 6.5%-7%. Meanwhile, IDC has reduced the growth outlook slightly for the more vibrant emerging economies in Southeast Asia; however, given that they are hyper growth markets in the first place, clocking around 10% annual growth, the changes are relatively small.

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