Forrester Projects 5% Growth in US Tech Market in 2017 and 2018

In a post to Forrester, Andrew Bartels gives the updated tech market forecast for 2017-2018, and it appears that there will be some decent growth in the next year. The projection is a 4.8% growth in 2017, assuming that there is moderate US economic growth, which is around 2% to 2.5% real GDP growth, 4% to 4.5% nominal GDP growth.

A Decent Forecast

The forecast themes point to improvement since the last economic quarter. Forrester predicts that the Trump administration is unlikely to effect positive economic growth or decrease trade growth. Additionally, business technology spending and IT spending are predicted to converge:

CIOs will need to place an emphasis on spending on business technologies that help firms win, serve, and retain customers, as BT spending will rise twice as fast as IT spending. The BT agenda will grow by 9% in 2017 and 8.4% in 2018, in comparison to IT spending which will increase by 2.7% in 2017 and 3.5% in 2018. However, BT spending and IT spending’s growth rates will follow converging patterns as CIOs implement back-office systems and infrastructure that support the BT agenda. Notably, BT as a percentage of total tech spending will continue to steadily rise in the coming years, reaching 34% in 2018.

There is additionally a projected growth in cloud platform services, with the rates landing in the 25% to 30% range.

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