Although computer hardware is the second-largest category of IT expenditures in the SOHO business market, spending is expected to fall into declines by 2007. In-Stat estimates that SOHO businesses will spend roughly $8 bln on computer hardware in 2005. Although spending is expected to increase by roughly 1% from 2004 levels, increases in spending will not be maintained in the future. Beginning in 2007, SOHO businesses are expected to decrease spending on computer hardware. By 2009, spending is actually expected to be below 2005 levels. When looking at size of business, the greatest percentage (61%) of spending on computer hardware in the SOHO business market is from commercial firms (based outside of a home). These firms are expected to spend roughly $4.8 bln on computer hardware in 2005, a 1% increase from 2004 levels. Home-based firms are expected to spend roughly $3.1 bln, or 39%, on computer hardware this year, also a 1% increase from last year.