INSIGHTS
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Mary Jacques, Executive Director, Global ESG and Regulatory Compliance, Lenovo
“With e-waste generation outpacing the rise in formal recycling by a factor of almost 5, enabling increased repair, refurbishment and recycling of electronics will become critical for achieving net-zero goals and addressing raw material scarcity. In 2025, businesses will increasingly seek devices designed for longevity and maximum upgradeability, driving a stronger shift
cloud and ramp up their investments in GenAI projects. l Semiconductors: Will outgrow the overall IT industry again, at near 12% growth, due to AI compute adoption and a rebound in non-AI-related demand. l Network Equipment: Projected 7% revenue growth after a downturn in 2024. l Mobile Telecom Equipment: Modest growth expected after declines in 2023 and 2024. l Storage: Gradual recovery with 4% revenue growth. l PCs & Smartphones: Shipments to grow 2%-3%, but industry revenues should be higher given a gradual infusion of AI-enabled devices. l Servers: Shipments to grow 4%, with revenues rising 10%-20%. The Bottom Line: Despite geopolitical uncertainties, the tech sector is poised for robust growth, with AI and cloud services leading the charge. l Positive Long-Term View: We maintain a positive long-term view of the technology industry and believe the sector to become less cyclical, with increasing investments across industries. l AI & Cloud: Key drivers of growth, with as-a-service spending becoming more prevalent. toward a more circular economy and sustainability in the tech industry. Energy-efficient hardware and extended software support aim to further mitigate environmental impact. Repairable designs with accessible instructions and simplified disassembly will become more widespread, alongside take-back programs for material recovery and reuse.”
Mary Jacques
Andrew Chang, Technology Director, S&P Global Ratings We maintain a positive long-term view of the technology industry. Industries from health care to energy will increase their investments in IT, and AI in particular, to increase sales, hasten R&D, and achieve operational efficiency.
lenovo.com
Key Takeaways from the S&P Global Ratings Technology Industry Credit Outlook : l Global IT Spending: Expected to grow 9% in 2025, driven by AI spurring massive data center spending and traditional hardware investments. l Software & IT Services: Steady growth; semiconductors to see double-digit growth due to AI. l U.S. Tariffs: Potential risk to IT consumption, especially for consumer- focused and enterprise hardware. l Diversification: The tech industry is diversifying its supply chain but is still heavily dependent on China.
Andrew Chang
spglobal.com
2025 Outlook: l GDP Growth: Global 3.0%,
U.S. approx. 2.0%, Eurozone 1.2%, China 4.1%. l Hyperscalers: Continued strong revenue growth well above 20%, supported by gradual monetization of AI investments. l Software: Modest grow acceleration to 10%, driven by digital transformation and AI integration. l Hardware: Material improvement in 2025 as enterprises transition to the
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