KUALA LUMPUR (Apr 10): Spending on technology products and services to grow 5.8% to reach RM64.4 billion in 2018 while worldwide IT spending is projected to total $3.7 trillion in 2018, an increase of 6.2% from 2017, according to the latest forecast by Gartner, Inc.

In a statement today, Gartner research vice president, John-David Lovelock said that the main reason for the strong growth was the declining US dollar that caused currency tailwind.

"This is the highest annual growth rate that Gartner has forecast since 2007 and would be a sign of a new cycle of IT growth. However, spending on IT around the world is growing at expected levels and is in line with expected global economic growth.

“Through 2018 and 2019, the U.S. dollar is expected to trend stronger while enduring tremendous volatility due to the uncertain political environment, the North American Free Trade Agreement renegotiation and the potential for trade wars," said Lovelock.

Gartner added that enterprise software spending is forecast to experience the highest growth in 2018 with an 11.1% increase.

It said the software industry is expected to continue capitalizing on the evolution of digital business.

Gartner added that application software spending is expected to continue to rise through 2019, and infrastructure software will also continue to grow, bolstered by modernization initiatives.

Meanwhile, worldwide spending for devices (PCs, tablets and mobile phones) is forecast to grow in 2018, reaching US$706 billion, an increase of 6.6% from 2017.

Lovelock added that some users are holding back from buying, and those that are buying are doing so, on average, at higher price points.

"As a result, end-user spending will increase faster than units through 2022. However, total end-user spending and unit shipments are expected to be lower compared with previous forecasts, as demand is expected to slow,” he said.