It’s 20th annual U.S. Information and Communications Technology (ICT) Market Review and Forecast finds that spending grew 5.6 percent to $1.45 trillion in 2015, the Telecommunications Industry Association (TIA) said this week as it convened in Dallas. TIA said the growth was “driven by strong spending in high-growth ‘Pacesetting’ markets.” The increase is ahead of the growth seen in 2014 (5.3 percent); the association predicts “all market segments will see declines in the rate of growth over the next five years.”
The survey looks at U.S. ICT spending based on expected performance of communications technologies, and puts them into four segments:
Pacesetting Markets — those experiencing double-digit growth (includes: cloud computing, business Ethernet services, network virtualization, Internet of Things, intelligent transportation and more).
Turnaround Markets — where spending is changing directions or rapidly accelerating/decelerating (includes: backbone infrastructure equipment, Smartphones, enterprise video conferencing and more).
Steady State Markets — those experiencing single-digit growth with no major swings (includes: cybersecurity, robotics, health ICT, fixed broadband, data center construction and more).
Legacy Technologies and Services — those experiencing long-term declines (includes: circuit-switched landlines, enterprise voice systems, standard wireless handsets and more).
TIA’s survey showed Pacesetting Markets led the way at 19.5 percent year-over-year growth. Turnaround Markets saw 10.6 percent growth and Steady State Markets saw 5.1 percent growth. Over the next five years, U.S. ICT spending is expected to achieve a 4.8 percent compound annual growth rate, and reach a total of $1.8 trillion in 2020 – maintaining its position as one of the leading drivers of the U.S. economy.
“The MR&F underscores that ICT spending is, and will remain, incredibly important to the American economy,” said TIA CEO Scott Belcher. “And while growth will continue almost across the board, it’s clear that the surge in ICT spending over the last decade is moving towards a more modest rate. This change is the result of maturing technologies, in which costs are lowered and companies are better able to target spending. Even as they enter a new stage, however, technologies such as cloud computing and intelligent transportation are expected to drive enormous spending.”