SMB IT Spending Market Size, Share, Growth, and Industry Analysis by Type (Hardware, Software, and Services), By Application (Small Businesses and Medium-Sized Businesses) Regional Forecast By 2031

Updated On: 17 June 2024

SMB IT Spending Market Report Overview

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The global SMB IT spending market size is USD 213284.56 million in 2021 & the market is expected to reach USD 330942.16 million in 2031, exhibiting a CAGR of 4.49% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with SMB IT spending experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

IT expenditures is the total amount of money the business has allocated to IT over the past 12 months. The cost of IT can be incurred across the entire corporation, not just the IT department. The business's occupancy costs are also included in the IT spending, along with IT service equipment, software, personnel, outsourcing, and disaster recovery. All taxes are included in the costs (excluding value-added tax, where the company is compensated or reimbursed).

COVID-19 Impact: Pandemic Caused Disruption in Market

Since the start of the COVID-19 outbreak, numerous markets all over the world have experienced losses as a result of global lockdown regulations. The COVID-19 pandemic caused several sectors to shut down partially, and for a few businesses, it resulted in a complete closure of operations. As a result, the worldwide supply chain was disrupted, raw materials could not reach the warehouses, and workers could not go to work owing to the risk of infection.

Latest Trends

"AI and Digitization Could Lead Towards Market Expansion"

Businesses are heavily investing in automation, artificial intelligence, and digitization, which is driving the market's expansion for SMB IT spending. Businesses can reduce risks in the political and economic spheres by investing in cloud software. Instead of the internet, cloud software is accessed directly through cloud providers. The requirement for costly internal servers, storage, networking, and various other hardware components is reduced. This gives the market for SMB IT spending a boost as it grows. The performance of settings with plenty of data is enhanced by the application of AI approaches in software audit management. As a result, audit firms benefit from shorter monitoring periods and less time and money spent on audit management. The advantages of AI audit management are anticipated to significantly influence the SMB IT spending market growth.

SMB IT Spending Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Hardware, Software, and Services.

• By Application Analysis

Based on application, the market can be divided into Small Businesses and Medium-Sized Businesses.

Driving Factors

"Rise of IT Infrastructure Drives Market Growth"

One of the main factors boosting the SMB IT expenditure market growth is the rising adoption of mobility solutions in the region. E-government efforts can be successful in tier II or tier III cities, as well as in rural areas without an IT infrastructure or Internet connectivity, due to mobility. Additionally, financial inclusion can be accomplished through mobility, allowing those without access to a bank to use m-commerce, mobile banking, and mobile money.

"Increasing Demand from Hardware Sector Proliferates Market Progress"

The hardware sector's share rise in the IT spending industry will be important for generating income. The use of mobile devices, such as smartphones and tablets, is predicted to develop quickly, which will cause the hardware segment to expand steadily over the projection period. The demand for phones with VoLTE and 4G has also increased as a result of users upgrading their phones in response to network providers' growing acceptance of these standards. Many telecommunications companies are investing a lot in 4G and 5G infrastructure. During the projection period, these variables will have an impact on the expansion of the SMB IT spending market in the hardware sector.

Restraining Factors

"Security Concerns to Impede Market Development"

The market for IT spending is positively impacted by the continual expansion of the world economy. However, the security of data could provide a significant obstacle to the expansion of the IT spending sector.

SMB IT Spending Market Regional Insights

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"Presence of Prominent Players to Foster Growth in North America"

North America is expected to have the largest SMB IT spending market share due to the presence of big companies which are well versed with technology. Avoiding the loss of important competencies is one of the biggest issues the IT spending market is currently facing, particularly when businesses are experiencing a crisis or making strategic divestitures. Because countries like India, China, the US, and Canada have competitive wage scales, it could be challenging to find and keep important professionals in outsourcing destinations like Malaysia and other Southeast Asian nations.

In addition, it is anticipated that increasing urbanization would fuel an increase in mobility in Malaysia and Indonesia. With urbanization's increased mobility comes a greater need for IT services and software development facilities. During the projected period, these factors are anticipated to fuel the expansion of the SMB IT spending market.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Brainhub (Poland)
• Energy Catapult (U.K.)
• Grupo Digital (Spain)
• HQSoftware (U.S.)
• Asperbrothers (Poland)
• Proxya (China)
• Quistor (Netherlands)
• Avaus (Finland)
• Capture (Singapore)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors such as segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.