Tag: Gartner

Device market to remain flat till 2018

GartnerWhile the economic looks to be getting better in some instances, worldwide shipment of PCs, tablets, ultramobiles and mobile phones are projected to remain flat in 2017.

According to Gartner, worldwide shipment for these devices are projected to total 2.3 billion in 2017, the same as 2016 estimates.

There were nearly seven billion phones, tablets and PCs in use in the world by the end of 2016. However, Gartner does not expect any growth in shipments of traditional devices until 2018, when a small increase in ultramobiles and mobile phone shipments is expected.

1 in 5 user interaction with smartphone will be via VPAs in 2019

google-nowAdvances in various technologies will drive users to interact with their smartphones in more intuitive ways, said Gartner. It expect that, by 2019, 20 percent of all user interactions with the smartphone will take place via virtual personal assistants (VPAs).

“The role of interactions will intensify through the growing popularity of VPAs among smartphone users and conversations made with smart machines,” said Annette Zimmermann, Research Director of Gartner.

Gartner’s annual mobile apps survey conducted in Q4 among 3,021 consumers across three countries (US, UK and China) found that 42 percent of respondents in the US and 32 percent in the UK used VPAs on their smartphones in the last three months. More than 37 percent of respondents (average across US and UK) used a VPA at least one or more times a day.

Global devices market continue to shrink for second year

GartnerWorldwide combined shipments for devices (PCs, tablets, ultramobiles and mobile phones) are expected to drop three percent in 2016, according to Gartner.

This will mark the second consecutive year of decline as the global devices market fell by 0.75 percent in 2015. And the immediate future remains bleak for this market.

“The global devices market is not on pace to return to single-digit growth soon,” said Ranjit Atwal, Research Director of Gartner.

Worldwide semiconductor spending to dip 0.7% in 2016

GartnerWorldwide semiconductor capital spending is expected to slide 0.7 percent in 2016, to US$64.3 billion, according to Gartner. This is up from the estimated 2 percent decline in Gartner’s previous quarterly forecast.

“Economic instability, inventory excess, weak demand for PC’s, tablets, and mobile products in the past three years has caused slow growth for the semiconductor industry. This slowdown in electronic product demand has driven semiconductor device manufacturers to be conservative in increasing production,” said David Christensen, Senior Research Analyst of Gartner.

“Looking ahead, it appears the second half of 2016 may see improved demand. However, following Brexit, semiconductor inventory levels may rise in the third and fourth quarters, which could lead to reduced production volumes,” he added.

Security software market up 3.7% in 2015

GartnerWorldwide security software revenue hit US$22.1 billion in 2015, a 3.7 percent increase in from 2014, according to Gartner.

Security information and event management (SIEM) remained the fastest-growing segment in 2015, with 15.8 percent growth, while consumer security software showed the sharpest decline at 5.9 percent year on year.

In 2015, the top five vendors together accounted for 37.6 percent of the security software revenue market share, down 3.1 percentage points from 2014. These vendors also displayed a collective decline of 4.2 percent in 2015, while the rest of the market (Others) grew strongly at 9.2 percent year on year.

Worldwide IT spending to be flat in 2016

GartnerWorldwide IT spending is forecast to be flat in 2016, totaling US$3.41 trillion, according to Gartner, Inc. This is up from last quarter’s forecast of negative 0.5 percent growth. The change in the forecast is mainly due to currency fluctuations.

“The current Gartner Worldwide IT Spending Forecast assumes that the UK would not exit the European Union. With the UK’s exit, there will likely be an erosion in business confidence and price increases which will impact UK, Western Europe and worldwide IT spending,” said John-David Lovelock, Research Vice President of Gartner.

While the UK has embarked on a process to change, that change is yet to be defined. The “leave” vote will quickly affect IT spending in the UK and in Europe while other changes will take longer. Staff may be the largest immediate issue. The long-term uncertainty in work status will make the UK less attractive to new foreign workers. Retaining current non-UK staff and having less access to qualified new hires from abroad will impair UK IT Departments.

India public cloud services to hit US$1.26b in 2016

GartnerThe public cloud services market in India is projected to grow 30.4 percent in 2016 to hit US$1.26 billion, according to Gartner.

The highest growth will come from cloud system infrastructure services (infrastructure as a service [IaaS]), which is projected to grow 32.5 percent in 2016, with platform as a service (PaaS) projected to grow 31.7 percent.

“We are witnessing a shift from legacy IT services to cloud-based services. Cloud services are growing due to organizations pursuing a digital business strategy,” said Sid Nag, Research Director of Gartner.

Half of CEOs expects substantial digital transformation in their industries

GartnerDespite a slowing global economy, CEOs are still making business growth their top priority in 2016, according to a Gartner survey.  After growth (54 percent), the second and third business priorities are customers (31 percent) and workforce (27 percent).

The Gartner CEO and senior business executive survey of 400 senior business leaders in user organisations worldwide was conducted in the fourth quarter of 2015, asking questions about 2016/2017. Most responding organisations were those with annual revenue of US$1 billion or more. The survey results show that while business conditions are challenging, CEOs remain confident enough to sanction strategic investments, particularly when it comes to digital business transformation.

“The big rise of explicit mentions of the word ‘customer’ was very noticeable in the results of this year’s survey, “CEOs seem to be concerned about improving customer service, relationship and satisfaction levels. At the same time, CEOs have become much more concerned about employee issues than a couple of years ago. The emphasis is as much on benefits, retention and training of mainstream staff. It is not constrained only to senior grade ‘talent’ issues,” said Mark Raskino, Vice President and Gartner Fellow.

PC shipment down 9.6% in Q1

GartnerWorldwide PC shipment shed 9.6 percent to 64.8 million in Q1, according to Gartner. This was the sixth consecutive quarter of PC shipment declines, and the first time since 2007 that shipment volume fell below 65 million units.

In the Asia-Pacific, PC shipment dropped 5.1 percent to 23.3 million units. The ongoing fragile Chinese economy and weak global demand continued to dampen consumer sentiment in the region.

With high PC penetration in the major cities, it was a challenge to invoke PC replacements on the appeal of new technology. The PC life cycle is lengthening as many consumers are waiting until their PC breaks down before purchasing a new one.

Global semiconductor market drops 2.3 percent in 2015

GartnerWorldwide semiconductor revenue declined 2.3 percent to US$334.8 billion in 2015, according to final results by Gartner.

The combined revenue of the top 25 semiconductor vendors fell by 0.5 percent during 2015. This was a better performance than the rest of the market, however, which saw a 6.9 percent revenue decline. The top 25 vendors accounted for 73.5 percent of the market, down slightly from 74 percent in 2014.

“The worldwide semiconductor market declined in 2015 as slowing demand for key applications combined with strong currency fluctuations to subdue the market. 2015 saw a mixed performance by the different device categories, unlike 2014 when all categories posted positive growth. Non-optical sensors performed best due to increased usage of fingerprint sensors in smartphones, while discretes saw the strongest decline due to a mix of weak demand and currency issues,” said Andrew Norwood, Research Vice President of Gartner.

Slower smartphone growth in 2016

Despite the launch of new models, such as the Samsung Galaxy S7 Edge, smartphone growth is expected to slow down this year.
Despite the launch of new models, such as the Samsung Galaxy S7 Edge, smartphone growth is expected to slow down this year.

Global smartphone sale is expected to experience just a single-digit growth this year, according to Gartner.

It estimates that global smartphone sale will reach 1.5 billion units, a seven percent increase from 2015. The total mobile phone market is predicted to reach 1.9 billion units in 2016.

“The double-digit growth era for the global smartphone market has come to an end. Historically, worsening economic conditions had negligible impact on smartphone sales and spend, but this is no longer the case. China and North America smartphone sales are on pace to be flat in 2016, exhibiting a 0.7 per cent and 0.4 per cent growth respectively,” said Ranjit Atwal, Research Director of Gartner.

While smartphone sales will continue to grow in emerging markets, the growth will slow down. Gartner predicts that, through 2019, 150 million users will delay upgrades to smartphones in emerging Asia-Pacific, until the functionality and price combination of a low-cost smartphone becomes more desirable.

Worldwide IT spending to remain flat this year

GartnerThe global economy is hitting IT spending, with Gartner predicting just a 0.6 percent increase over 2015 spending of US$3.52 trillion.

2015 saw the largest US dollar drop in IT spending since Gartner began tracking IT spending. US$216b less was spent on IT in 2015 than in 2014 and 2014 spending levels won’t be surpassed until 2019.

“The rising US dollar is the villain behind 2015 results. US multinationals’ revenue faced currency headwinds in 2015. However, in 2016 those headwinds go away and they can expect an additional five percent growth,” said John-David Lovelock, Research Vice President of Gartner.

Q2 PC shipment drops 9.5%

GartnerLenovo remained the top PC vendor amidst a 9.5 percent global PC shipment decline in Q2, according to Gartner. On the whole, Lenovo suffered along with the rest of the industry with a year-on-year shipment decline for the first time since Q2 2013.

HP also experienced a shipment decline after five consecutive quarters of PC shipment growth. It was impacted by tight inventory controls in the consumer market before the Windows 10 launch.

Worldwide PC shipment totalled 68.4 million units in Q2 with 2015 shipment expected to drop 4.4 percent.

India software market up 8% in 2014

GartnerSoftware revenue in India rose 8.3 percent to hit US$4 billion in 2014, according to Gartner.

“The enterprise software marketplace is dynamic and ever-changing. Its growth and structure are being shaped by the factors and forces of decentralised purchasing, consumerisation and mobility, influence of emerging markets, cloud-based implementations, and new consumption models. Improvement in global economic conditions has somewhat relaxed the strain on the Indian economy, thereby boosting corporate sentiments. Along with a new stable government at the center, this has helped in alleviating concerns about economic growth — to a certain extent — with early signs of spending in growth initiatives beginning to emerge,” said Bhavish Sood, Research Director of Gartner.

Several leading trends include:

  • Software as a service (SaaS) adoption and development
  • Open-source software (OSS) adoption and its broader market implications
  • Changing buying behaviors and purchasing styles associated with the digital business
  • Spending in key growth markets such as India and China

Amazon takes pole position in Gartner Supply Chain Top 25 ranking

GartnerE-commerce giant Amazon has emerged tops in Gartner’s 11th annual Supply Chain Top 25 ranking, which identifies global supply chain leaders and highlights their best practices.

Fast food chain McDonald’s came in second and consumer goods maker Unilever third.

“In this edition of the Supply Chain Top 25, we have several longtime leaders with new lessons to share and a number of more recent entrants from the high-tech, consumer products, retail and industrial sectors,” said Stan Aronow, Research Vice President of Gartner.

APAC device shipment to grow 3.2% in 2015

GartnerShipment of devices (PCs, tablets, ultramobiles, and mobile phones) in Asia Pacific are expected to hit 1.2 billion units in 2015, an increase of 3.2 percent over 2014, according to Gartner.

“Device penetration is very high in Asia Pacific – at or beyond saturation point in mature markets and major cities in the emerging markets. Market saturation, along with consumers extending the lifetime of their tablets, has caused a re-calibration in the growth trajectory in the market. From 2016, we expect the tablet market to resume growth from a stabilised base,” said Lillian Tay, Principal Analyst of Gartner.

The computing devices market is forecast to drop 1.9 percent this year, affected by weak demand for tablets. The PC market overall will continue to grow slightly, as shipment in the premium ultramobile category compensate for a decline in sales of traditional desk-based and notebook PCs.

Business intelligence and analytics top priorities for Asean CIOs

GartnerBusiness intelligence and analytics are the top priorities of CIOs in Southeast Asia (SEA), according to a Gartner survey.Next on their list are mobile, ERP and cloud.

Eighty-four percent of CIOs in SEA recognise the need to adapt their leadership style in the next three years to succeed in digital business, compared with the global average of 75 percent. To achieve this, 69 percent said that they want to decrease their controlling approach to focus on significantly increasing their visionary and coaching attributes.

The annual survey covered more than 2,810 CIOs worldwide, representing more than US$397 billion in CIO IT budgets in 84 countries. It included responses from 117 CIOs from Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.

Lenovo strengthens grip on top spot as PC shipment rises 1% in Q4

GartnerLenovo maintained its pole position in the PC market, holding off HP and Dell. However, the gap between Lenovo and HP narrowed as HP garnered 18.8 percent of the market in Q4, relative to Lenovo’s 19.4 percent, according to Gartner. Dell remained third with 12.7 percent market share.

Overall, worldwide PC shipment totalled 83.7 million units in Q4, a one-percent increase from the fourth quarter of 2013. These results indicate a slow, but consistent improvement following more than two years of decline.

“The PC market is quietly stabilising after the installed base reduction driven by users diversifying their device portfolios. Installed base PC displacement by tablets peaked in 2013 and the first half of 2014. Now that tablets have mostly penetrated some key markets, consumer spending is slowly shifting back to PCs,” said Mikako Kitagawa, Principal Analyst of Gartner.

Tablet sales to be sluggish in 2015

GartnerGlobal demand for tablets will continue to be slow in 2015, according to Gartner. Worldwide tablet sales will reach 233 million units, an eight percent increase from 2014.

“The collapse of the tablet market in 2014 was alarming. In the last two years, global sales of tablets were growing in double-digits. The steep drop can be explained by several factors. One is that the lifetime of tablets is being extended – they are shared out among family members and software upgrades, especially for iOS devices, keep the tablets current. Another factor includes the lack of innovation in hardware which refrains consumers from upgrading,” said Ranjit Atwal, Research Director of Gartner.

Gartner analysts expect vendors in the devices space to announce new partnerships at CES this week that lead to innovative apps that use personal data to tailor the user experience.

Singapore government IT spending hits US$3.2b

GartnerThe Singapore government continued to invest in IT this year with spending expected to hit US$3.2 billion, up 3.2 percent from 2013.

According to Anurag Gupta, Research Director of Gartner, IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, would be the largest overall spending category throughout the forecast period within the government sector.”

“Government spending on IT services is expected to grow three percent in 2014 to reach US$1.9 billion, up from US$1.8 billion in 2013 – with the business process outsourcing segment growing 5.3 percent in 2014,” he noted.

Smart garments show greatest potential for growth among wearable devices

GartnerWearable electronic devices for fitness shipments are forecast to reach 68.1 million units in 2015, down from 70 million units in 2014, according to Gartner. This temporary dip in sales will be driven by an overlap in functionality between smart wristbands, other wearable fitness monitors and smartwatches.

However, the market for smart wristbands and other fitness monitors will rebound in 2016 because of versatile designs and models with lower-cost displays.

“Fitness wearables are used for tracking health, which goes hand-in-hand with fitness and wellness. Consumers will be able to integrate the data from most wearables into a single account where their data can be analysed using cognizant computing to provide useful insights to wearers.,” said Angela McIntyre, Research Director of Gartner.

3D printers set for rapid growth

GartnerThe global 3D printer market is set to double next year to reach 217,350 units in 2015, according to Gartner.

From then, 3D printer shipment will more than double every year between 2015 and 2018, by which time worldwide shipments are forecast to reach more than 2.3 million.

“As we noted last year, the 3D printer market is at an inflection point. Unit shipment growth rates for 3D printers, which languished in the low single and double digits per year throughout the 30 years since the first 3D printers were invented, are poised to increase dramatically beginning in 2015. As radical as the forecast numbers may seem, bear in mind that even the 2.3 million shipments that we forecast will be sold in 2018 are a small fraction of the total potential market of consumers, businesses and government organisations worldwide,” said Pete Basiliere, Research Vice President of Gartner.

Worldwide semiconductor market to grow 7.2% this year

GartnerA slew of demand for semiconductors is helping the industry to hit a targeted 7.2 percent growth to hit US$338 billion this year.

Apple and Samsung are among the many IT vendors that have unleashed new products in recent months, spurring the growth in the semiconductor market.

“Semiconductor revenue set an all-time record in the third quarter of 2014, fueled by a strong electronics build for the holiday season. Get ready for a flood of new product introductions, ranging from simple low-cost tablets to high-end ultramobiles and smartphones. Demand for the iPhone 6 and iPhone 6 Plus has been robust, but there is concern for other types of devices planned for the holidays,” said Jon Erensen, Research Director of Gartner.

Watch for it — US$30 smartwatches next year!

mi-bandSmartwatches are attracting lots of attention but the prices are keeping many at bay, at least for now. Come next year, the prices are expected to average US$30, as smartphone vendors and component suppliers look to tap this market. In fact, Xiaomi has already introduced the Mi Band at just US$13.

Gartner predicts that by 2016, smartwatches will comprise about 40 percent of consumer wristworn devices. Nine out of the top 10 smartphone vendors have entered the wearables market to date or are about to ship a first product, while a year ago only two vendors were in that space.

“Apple has finally unveiled its Apple Watch, which we expect to trigger more consumer interest once it starts shipping in 2015,” said Angela McIntyre, Research Director of Gartner.

75% of mobile apps will fail security test

Gartner

Enterprise employees are downloading mobile applications from app stores and use these applications to access enterprise assets or perform business functions. What’s scary is that many of these applications have little or no security assurances.

According to Gartner, more than 75 percent of mobile applications will fail basic security tests in 2015. These applications are exposed to attacks and violations of enterprise security policies.

“Enterprises that embrace mobile computing and bring your own device (BYOD) strategies are vulnerable to security breaches unless they adopt methods and technologies for mobile application security testing and risk assurance. Most enterprises are inexperienced in mobile application security. Even when application security testing is undertaken, it is often done casually by developers who are mostly concerned with the functionality of applications, not their security,” said Dionisio Zumerle, Principal Research Analyst of Gartner.

Consumer 3D printing not quite there yet

GartnerWhile 3D printing is a much talked about topic these days with several startups getting crowdfunding to deliver such solutions, Gartner beileves that the technology is five to 10 years away from mainstream adoption.

The research firm pointed out that consumer adoption will be outpaced by business and medical applications that have more compelling use cases in the short term.

“Consumer 3D printing is around five to 10 years away from mainstream adoption. Today, approximately 40 manufacturers sell the 3D printers most commonly used in businesses, and over 200 startups worldwide are developing and selling consumer-oriented 3D printers, priced from just a few hundred dollars. However, even this price is too high for mainstream consumers at this time, despite broad awareness of the technology and considerable media interest,” said Pete Basiliere, Research Vice President of Gartner.

Chromebook sales to nearly triple by 2017

Acer Chromebook 13Acer has launched the Acer Chromebook 13, its first 13-inch Chromebook as well as the first Chromebook to use the NVIDIA Tegra K1 processor, which gives the new Chromebook a performance edge and longer battery life of up to 13 hours.

This rollout should help Acer concretise its position as the number in the Chromebook market, behind leader Samsung, which had 64.9 percent market share in 2013.

Gartner expects sales of Chromebooks to reach 5.2 million units this year, a 79 percent increase from 2013. By 2017, sales of Chromebooks are set to nearly triple to reach 14.4 million units.

India security market on track for 8% growth this year

GartnerSecurity vendor revenue (hardware, software and services) in India will grow from US$882 million in 2013 to US$953 million this year, according to Gartner.

Security spending will continue to grow to reach $1.06 billion next year. Security services (including consulting, implementation, support, and managed security services) revenue accounted for more than 55 percent of this total revenue in 2013 and this trend will continue into the foreseeable future.

“Enterprises in India that traditionally did not focus on, or invest in, a lot of security technologies are now beginning to realize the implications that a weak security and risk posture can have on their business,” said Sid Deshpande, Principal Research Analyst ofGartner.

PC market on slow road to recovery

GartnerWorldwide combined shipment of devices (PCs, tablets, ultramobiles and mobile phones) are expected to reach 2.4 billion units in 2014, a 4.2 percent increase from 2013, according to Gartner.

After declining 9.5 percent in 2013, the global PC market (desktop, notebook and premium ultramobile) is on pace to contract only 2.9 percent in 2014.

“2014 will be marked by a relative revival of the global PC market. This year, we anticipate nearly 60 million professional PC replacements in mature markets,” said Ranjit Atwal, Research Director of Gartner.