The 2022 IT spending forecast is bright for B2B technology marketers. 61% of companies expect higher revenue in the coming year. More than half (53%) expect their IT budgets to increase, while just 7% anticipate budget cuts.
The tech spending outlook for 2022 is even more optimistic than it was coming into 2020 (before the pandemic).
One downside is that “More than 40% of businesses expect shortages, price increases, shipping delays, and logistical issues.” But that is potentially good news for vendors that are able to deliver and keep price increases in check.
Here are six more interesting results from the SWZD research.
- North American companies are somewhat more optimistic than their European counterparts. Among companies based in the U.S. and Canada, 64% expect their revenue to increase next year, while just 6% of firms anticipate a decline. For firms across the Atlantic, those figures are 57% and 11%, respectively.
- By size, larger companies are more positive; or rather, more large companies are positive. Just 54% of businesses with less than 100 employees expect revenue growth in 2022, compared to roughly three-quarters of enterprises with a thousand or more workers.
- By industry, more than 70% of companies in manufacturing, retail, and financial services anticipate higher top lines.
- 55% of North American companies, and 51% of European firms, say their IT budgets will increase next year. Again, that figure is higher for businesses with 1,000 or more employees (63%) than for organizations with few than 500 workers (45%).
- Among the top factors driving growth in IT budgets are digital transformation and the need to replace or extend older technology platforms; the continuing shift to cloud-based services; and the need to support a hybrid work environment over the long term. Companies will continue to invest in advanced security solutions.
- Although the two biggest categories for spending are still hardware (30%) and software (28%), those numbers are steadily shrinking. Cloud-based services (22% in 2020; 26% in 2022) and managed services are taking an increasing share of spending.
There are many more details in the full report from SWZD, including breakdowns of hardware, software, cloud, and managed services spending by specific type and area; purchase triggers for IT spending decisions; and the path ahead for the adoption of emerging technologies, like IoT (and IIoT), 5G networking, AI, and 3D printing.
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As reported here previously, Millennials are taking over tech buying. Unlike their senior counterparts, this group doesn’t care much about industry analyst reports, and they don’t answer cold calls. Three keys for B2B tech marketers to effectively reach this group are:
Search: As previously noted, “Gen Z and Millennial buyers are 2X more likely than older generations to discover a product by searching online.” Investments in both organic (SEO) and paid search are vital.
Testimonials: Customer reviews and case studies are big. Today’s tech buyers are much more interested in hearing, seeing, and reading what your customers say about you than your marketing collateral.
Trials: Free trials, freemium pricing models, and self-guided demos are useful. Tech buyers want the opportunity to poke around your product on their own before starting a conversation.
Again, there’s lots more detail about tech spending plans in the 2022 State of IT report. It’s worth checking out.