Global Technology Scorecard: Q1 2015

This quarterly global snapshot of activity in the technology sector highlights trends, business challenges and opportunities. In this edition we review the first calendar quarter of 2015.

First quarter financial results were mixed in the technology sector with Internet, Software, and Semiconductor subsectors outperforming Communications, Consumer Electronics, and Systems & PC Hardware.

The market for the Internet of Things is expected to grow 19% in 2015 with the digital signage market projected to be a major driver of growth. Thanks to growing use in the retail market, this area of IoT is expected to grow from US$6 billion in 2013 to US$27.5 billion in 2018, representing a 35.7% five-year compound annual growth rate (CAGR). While certain segments of the consumer market are seeing some IoT infiltration, and companies are starting to collect data based on sensors, there are still a number of contentious security and privacy issues to be addressed.1

Worldwide IT spending is currently expected to shrink 1.3% on an annual basis, from US$3.71trn in 2014 to US$3.66trn in 2015. Data center system spending is projected to reach US$142bn in 2015, an increase of just 0.4% from 2014. While external controller-based storage, enterprise network equipment and servers have been impacted by the depreciation of several currencies against USD, the server segment has seen the biggest impact due to greater pricing pressure and lower margins. Growth in spending on telecom services in 2015 is expected to shrink by 2.6%, from US$1.61trn in 2014 to US$1.57trn in 2015.2

Detailed financial information can be accessed on the "Data explorer" tool.

  1. IDC, Mar 2015
  2. Gartner, Apr 2015

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