Worldwide end users spent $1.16 trillion on information technology in 2006 and will increase IT spending at a compound annual growth rate (CAGR) of 6.3% to reach $1.48 trillion in 2010, a newly updated IDC forecast on worldwide vertical market IT spending reveals.

In the latest study from the Worldwide Vertical Market research program, IDC presents an analysis of vertical market IT spending and opportunities across the regions where IDC maintains a research presence.

"Regional dynamics can significantly impact top business challenges in different industries," said Anne Lu, program manager in IDC's Worldwide Vertical Market research program. "IT vendors should look closely at the unique industry and regional trends and business challenges of each target market and then segment their customers based on these needs. This needs-based segmentation should help deliver a win-win solution for IT suppliers and their customers. Customers will get the strategic solutions they need – and subsequently buy more – and IT suppliers will in turn increase sales and profits."

Worldwide software spending is expected to reach $327 billion in 2010, reflecting a five-year CAGR of 7.7%. The largest markets are discrete manufacturing, the services industries, and government. The fastest-growing markets are healthcare, communications, and government.

Worldwide hardware market spending is set to recover in the 2006–2010 period, reaching $562 billion in 2010. IDC sees rising spending on volume servers, peripherals and storage, and networking equipment across regions. It is driven mainly by the robust spending from the home business and consumer, communications, and government sectors.

IDC expects spending on IT services worldwide to reach $587 billion in 2010, reflecting a CAGR of 5.8% from 2005 to 2010. The largest market opportunities reside in government, banking, and discrete manufacturing.