A latest release of its SMB Technology Forecaster, Analysys Mason predicts that IT spending by SMBs will grow at a compound annual growth rate (CAGR) of 7.5% between 2022 and 2027. Cloud-based services will drive this growth because they support a distributed workforce, improve efficiency and provide business resiliency. SMB IT spending on cloud-based categories is expected to grow from USD 600 billion in 2022 to USD 1.0 trillion in 2027.
The SMB Technology Forecaster helps IT vendors and operators to pinpoint areas for revenue growth. It provides granular insights into SMB IT spending, split by technology category, country, business size, industry vertical and sales channel.
The key findings of the latest forecast include the following:
- Spending will increase in 2022. SMB IT spending is expected to grow by 5.9% year-on-year in 2022. This growth has been limited by economic and political uncertainty, despite the optimistic view expressed by SMBs coming out of the pandemic.
- Spending growth will increase over the next 5 years. IT spending growth will increase gradually over the next 5 years and will reach 8% year-on-year by 2027.
- Three categories account for almost half of all spending. Managed services, infrastructure and cyber security are key priorities for SMBs in 2022. Spending on these categories will account for 45% of SMBs’ total spending on IT. SMBs are shifting their focus towards categories that can help them to establish a resilient IT environment in order to enable business continuity and avoid future disruptions.
- Hybrid working continues to influence IT spending. Hybrid working environments will continue to drive spending on collaboration and business applications, as seen during the pandemic. SMBs will shift from using freemium versions to paid offerings within these category areas
Commenting on the forecast, Bob Takacs, Research Director and SMB IT practice leader at Analysys Mason, said, “Our latest forecast reveals the shift in SMBs’ behaviour and priorities since the pandemic. We see increased investments in categories driving resiliency and efficiency. This includes categories such as managed services, infrastructure and cyber security.” He adds, “This is an important release because we accounted for the impact of three critical drivers including SMB’s changing behaviours post-pandemic, macroeconomic headwinds and the global political unrest. Given these impacts to the ecosystem, this release will be an essential tool for business leaders to help them to drive and protect their SMB revenue.”
For more information, visit the Analysys Mason SMB Technology Forecaster.
