2006 IT spending reached $1.16 trillion

Worldwide end users spent $1.16 trillion on information technology in 2006 and will increase IT spending at a compound annual growth rate (CAGR) of 6.3% to reach $1.48 trillion in 2010, IDC says. Worldwide software spending is expected to reach $327 bln in 2010, reflecting a five-year CAGR of 7.7%. The largest markets are discrete manufacturing, the services industries, and government. The fastest-growing markets are healthcare, communications, and government. Worldwide hardware market spending is set to recover in the 2006?2010 period, reaching $562 bln in 2010. IDC sees rising spending on volume servers, peripherals and storage, and networking equipment across regions. It is driven mainly by the robust spending from the home business and consumer, communications, and government sectors. IDC expects spending on IT services worldwide to reach $587 bln in 2010, reflecting a CAGR of 5.8% from 2005 to 2010. The largest market opportunities reside in government, banking, and discrete manufacturing.