IT spending in Hong Kong is on track to grow 3.3% this year to HK$160.8 billion, with growth expected across all market segments, according to Gartner.
The research firm expects the market to experience further positive momentum in 2020, with spending projected to increase 5.7% to HK$170.02 billion.
The fastest growing category for both 2019 and 2020 will be spending on software, Gartner said. The software segment is on track to rise 10.6% this year to HK$14.92 billion, and a further 11.9% in 2020 to HK$16.69 billion.
Communications services will remain the largest spending category, but spending is expected to grow just 0.1% in 2019 to HK$59.95 billion and 1.8% in 2020 to HK$61.05 billion.
Spending on devices is expected to be nearly stagnant this year – increasing just 0.6% to HK$42.44 billion – but to bounce back to 8.1% growth in 2020 to HK$45.89 billion. Meanwhile IT services spending growth will remain relatively stable at 9.2% in 2019 (to HK$34.99 billion) and 9.3% in 2020 (to HK$38.26 billion, Gartner said.
Meanwhile Gartner expects data center systems spending to grow at a solid 5.7% in 2019 to HK$8.54 billion, but shrink 5% in 2020 back to HK$8.11 billion as a result of a global slowdown affecting the segment.
In China meanwhile, total spending is expected to grow 5.5% to 2.76 trillion yuan in 2019, and 3.8% to 2.86 trillion yuan in 2020. Global IT spending is set to grow 3.2% this year to US$3.77 billion, and 2.8% in 2020 to US$3.87 billion.
“Despite uncertainty fueled by recession rumors, Brexit, and trade wars and tariffs, the likely scenario for IT spending in 2019 is growth,” Gartner research vice president John-David Lovelock said.
“However, there are a lot of dynamic changes happening in regards to which segments will be driving growth in the future. Spending is moving from saturated segments such as mobile phones, PCs and on-premises data center infrastructure to cloud services and IoT devices. IoT devices, in particular, are starting to pick up the slack from devices. Where the devices segment is saturated, IoT is not.”