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Tue 1 Mar 2016 02:53 PM

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Middle East IT spending forecast to hit nearly $213bn in 2016

Gartner report says devices will represent close to 19% of total IT expenditure in the region

Middle East IT spending forecast to hit nearly $213bn in 2016
(Bloomberg Images - for illustrative purposes only)

Middle East IT spending is projected to reach $212.9 billion in 2016, a 3.7 percent increase from 2015, according to the latest forecast by Gartner.

With devices representing close to 19 percent of total IT spending in the region, tablets and PCs are showing good momentum in the forecast period, the company said.

It added that tables and PC sales are forecast to reach nearly $8 billion in 2016, and surpass $10 billion in 2018. Mobile phone sales will grow from slightly above $30 billion in 2016 to nearly $37 billion in 2019.

With IT services doubling software expenditures in 2016, business IT services will represent 84 percent of the total services segment, Gartner said.

The data centre segment market is forecast for relatively flat growth in 2016. This segment includes external network equipment, external controller-based storage, servers, and unified communications, it added.

Peter Sondergaard, senior vice president and global head of research at Gartner, said: “We see positive IT growth and scenarios in the Middle East despite some level of economic uncertainty in world markets.

“The substantial industrial refocusing to generate new economic development beyond the oil industry, with deepening smart cities initiatives and adoption of the Internet of Things (IoT), is of utmost importance in this region. We are witnessing priorities for smart city governments in education, transportation, safety and health.”

Gartner said in five years, one million new devices worldwide will come online every hour.

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