Analysys Mason Predicts SMB IT Spending Will Increase This Year

In the latest release of its SMB Technology ForecasterAnalysys Mason predicts IT spending by SMBs will grow at a compound annual growth rate (CAGR) of 7.5 percent 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 $600 billion in 2022 to $1 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:

  • Spending will increase in 2022 – SMB IT spending is expected to grow by 5.9 percent 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 five years – IT spending growth will increase gradually over the next five years and will reach 8 percent 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 percent of SMBs’ total spending on IT. SMBs are shifting their focus towards categories that can help them to establish a resilient IT environment 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

Analysys Mason’s Research Director and SMB IT practice leader Bob Takacs said, “Our latest forecast reveals the shift in SMBs’ behavior 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 added, “This is an important release because we accounted for the impact of three critical drivers including SMB’s changing behaviors 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.”

The Analysys Mason SMB Technology Forecaster is a tool that helps clients to forecast, inform and validate their marketing and channel strategies with precision and confidence. It is underpinned by primary research, granular demand insights and macroeconomic data and is stress-tested to ensure accuracy and predictability.

The SMB Technology Forecaster enables Analysis Mason’s clients to answer business-critical questions to protect and grow their SMB revenue.

For more information, visit the Analysys Mason SMB Technology Forecaster.