A view of how the IT and communications market will evolve in 2021

1. ITCandor 2021 predictions
ITCandor 2021 predictions for the IT
and communications industry
Has helped…v pandemic,
can help… v recession,
might help… v global warming

2. ITCandor 2021 predictions
ITCandor 2021 predictions for the IT and
communications industry
• 1. The world market for IT and communications will fall 1% to $6.8
trillion
• 2. ITC spending will grow most in China, shrink most in the UK
• 3. Software will be the only category to see growth
• 4. IaaS will grow most, Peripherals least
• 5. The rise of small business as an ITC buyer
• 6. Taxation and recession will challenge the $10 billion supplier club
• 7. Governments and big business strengthen protection from
mutating cyber crime
• 8. Millions will stay working from home, even when the pandemic
ends
• 9. 55 million gaming consoles will ship
• 10. The ITC industry takes strides to counter global warming

3. ITCandor 2021 predictions
1. The world market for IT and communications
will fall 1% to $6.8 trillion
• Will continue to enable
connections in an
isolating world
• Inoculation will allow
some to resume more
normal interactions
• ITC purchasing will
decline due to the post-
pandemic recession with
failing businesses and
growing unemployment

4. ITCandor 2021 predictions
2. ITC spending will grow most in China, shrink
most in the UK
• Few countries will see
growth
• Success v the pandemic
gives earlier economic
recovery
• China spending will
grow 1.1%
• The UK market will
decline by 4.0%
• The USA market will
decline by 1.1%

5. ITCandor 2021 predictions
3. Software will be the only category to see
growth in 2021
• Software spending will
grow 1.7% and have
the highest absolute
profit
• IT service spending will
stay level with last year
• Telecom service will
decline by 1.0%
• Hardware sales will fall
4.4%

6. ITCandor 2021 predictions
4. IaaS will grow most, Peripherals least in 2021
• IaaS and PaaS will grow
most, but by less than
in 2020 – will still
represent a small part
of enterprise purchasing
• The peripherals market
will decline by 8.9% to
$132 billion
• Hardware maintenance,
applications and
software maintenance
spending will grow
modestly

7. ITCandor 2021 predictions
• Large business spending
on ITC offerings will
decline by 4.3%
• Medium enterprises will
spend 0.9% less
• Consumer spending will
decline 2.3%
• Small businesses will
spend 2.6% more than
in 2020
5. The rise of small business as an ITC buyer

8. ITCandor 2021 predictions
• 5 suppliers already
make more than $10
billion net profit a year
• Governments trying to
counter the economic
recession will increase
taxation …
• … or at least cancel tax
breaks for major
vendors
6. Taxation and recession will challenge the $10
billion supplier club

9. ITCandor 2021 predictions
• Many large
organizations will
discover long-term,
previously unknown,
hacks
• New holistic approaches
will develop to counter
increasing cyber crime
• Some will merge
physical and virtual
counter measures
7. Governments and big business strengthen
protection from mutating cyber crime

10. ITCandor 2021 predictions
• Significant proportions
of the workforce have
benefited from the
necessity to work from
home
• The return to the office
will be slow
• Even when life returns
to normal, millions of
white collar will stay
working from home
8. Millions will stay working from home, even
when the pandemic ends

11. ITCandor 2021 predictions
• There will be supply
restraints throughout
the year of PS5 and
xBox X/S
• Nintendo will ship fewer
Switches
• 55 million consoles will
shift – a new annual
record
• Gaming will decline
where and when social
distancing is cancelled
9. 55 million gaming consoles will ship in 2021

12. ITCandor 2021 predictions
• IT and communications
account for 5% of
global carbon emissions
• The industry supports
95% of the initiatives to
move to renewable
energy and cut pollution
• We have to lean to live
more modestly
• Green data centers will
play a pivotal role
10. The ITC industry takes strides to counter
global warming

13. ITCandor 2021 predictions
For more information
on our ITC research
and forecasts
Please contact:
info@itcandor.com