Spending on information technology by enterprises, small and midsize businesses (SMBs) and others will hit $2.7 trillion by 2020, according to International Data Corporation’s newly published Worldwide Semiannual IT Spending Guide: Vertical and Company Size.

IDC’s report states that the bulk of IT spending will come from the banking, discrete manufacturing and telecom verticals. These industries combined will account for almost a third of all IT spending through 2020.

However, the healthcare industry will be the fastest-growing vertical over IDC’s forecast period, with a five-year compound annual growth rate (CAGR) of 5.7 percent expected. The banking, media and professional services industries will also see spending increase, with CAGRs of 4.9 percent.

“In the U.S., the greatest near-term growth is expected among healthcare providers, professional services firms, banks and securities and investment services organizations,” Jessica Goepfert, program director, Customer Insights and Analysis at IDC, said in a statement. “These service-based organizations are turning to 3rd Platform technologies like mobility and big data to enable more productive and meaningful ways to engage with clients. In addition to these customer-centric priorities, businesses operating in regulated environments are also turning to technology to assist with compliance.”

Large enterprises, which are defined as those with more than 1,000 employees, will account for 45 percent of IT spending, IDC said. It also highlighted where larger industries will spend their IT dollars, saying that financial services and manufacturing firms will continue to invest in Big Data, cloud and mobility technologies as they advance their digital strategies.

Software will account for the lion’s share of spending, IDC said. However, hardware will still represent a significant part of the overall market, though reduced consumer spending on PCs, smartphones and tablets could hurt the IT market.

SMBs will account for roughly a quarter of all IT spending in the next four years, but IDC notes that this share could increase as smaller companies begin investing in enterprise-grade technologies like machine learning and cloud.

“Enterprise investment in new project-based initiatives, including data analytics and collaborative applications, remains strong and mid-sized companies have been especially nimble when it comes to rapidly adopting 3rd Platform technologies and solutions,” said Stephen Minton, VP of customer insights and analysis at IDC.

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