Channel partners will deliver 73.2% of the total worldwide IT market in 2024, according to Canalys. In its latest IT Opportunity update, the firm predicts a 6.2% growth in worldwide IT spending this year to $4.94 trillion, despite the risk of disruption being caused by global events.
► AI will be a key driver of spending growth this year
► GenAI could be $159 billion channel opportunity by 2028
The continued challenging economic trends in key markets, will see EMEA grow by 4.2% this year. Canalys singled out Germany, which is being impacted by weak exports, skilled labour shortages, high interest rates and uncertainty around energy security.
Estimated growth in North America will be 6.6% and generate 38.8% of worldwide IT spending, while the Asia Pacific market will grow 7.4%, driven by continued expansion in China and India.
Matthew Ball, chief analyst at Canalys stated: ‘Economic headwinds like inflation and potential recession are real, especially in the first quarter of 2024. But organisations continue to recognise the critical role of technology and IT services in transforming and expanding operations, building resilience, and driving employee productivity.’
Across hardware, software and services, Canalys expects channel partners to continue to play a crucial role in scaling vendor reach and delivering complex technology solutions to customers.
The update also noted that generative AI (gen AI) will be the catalyst for a multiyear investment cycle across all IT segments. Describing 2024 as ‘the starting point’, Canalys predicts AI will reshape the entire tech landscape in coming years. AI for infrastructure, AI embedded in software, applications, plug-ins and devices, and services that help companies plan, adopt, implement, use, and optimise AI will all present new growth opportunities.
It expects GenAI specifically to be a $159 billion opportunity for the channel by 2028. Formulating a clear strategy, building in-house expertise and developing strategic partnerships should be priorities for channel partners that want to capitalise on the opportunities.
Key market trends
Canalys also released a list of market trends for partners to watch in 2024.
- The PC market will return to growth, with AI-capable models boosting the ongoing refresh cycle.
- Investment in higher-priced and more powerful AI-capable servers will offset a decline in networking hardware spending.
- Cybersecurity will continue to be an investment priority due to evolving threats, with XDR (Extended Detection & Response), SASE (Secure Access Service Edge) and CNAPP (Cloud Native Application Platform) investment gaining traction.
- Demand for managed IT services will thrive – greater complexity will lead customers to seek expertise in cybersecurity, application and cloud infrastructure management.
- Commitments to cloud infrastructure services will increase and growth in cloud infrastructure services will re-accelerate, driven by the next wave of cloud migration and AI adoption.
- AI will be integrated as a standard feature of solutions in the long run.
