As we navigate through 2025, the channel landscape is experiencing significant shifts driven by various factors, including the ongoing impact of tariffs. In a recent discussion, CRN’s Jennifer Follett and Circana’s Mike Crosby delved into the outlook for 2025, focusing on growth trends in the IT hardware and software sectors, the influence of AI on the market, and the challenges posed by tariffs and supply chain issues.
Growth Trends in IT Hardware and Software
The IT hardware sector is projected to see a resurgence in 2025, with an expected growth of around $32 billion. This growth is primarily driven by a significant PC refresh cycle, which began in January and is anticipated to continue throughout the year. Notebooks and desktops are leading this growth, contributing to a single-digit increase in the overall IT hardware market.
On the software and cloud services front, the outlook remains positive. Software is expected to grow between 7% and 9%, while cloud services are projected to see a robust growth rate of 25% to 30%. This collective growth across hardware, software, and cloud services is expected to result in an overall market gain of approximately 6%.
The Role of AI in Market Dynamics
AI continues to be a transformative force in the IT sector. The adoption of AI PCs and their integration into various industries are driving significant changes. Solution providers are increasingly focusing on AI-driven innovations to stay competitive and meet the evolving demands of their clients.
Challenges Posed by Tariffs and Supply Chain Issues
One of the critical challenges facing the channel in 2025 is the impact of tariffs and supply chain disruptions. Tariffs have introduced a layer of complexity for solution providers, OEMs, and partners. Navigating these challenges requires agility and effective communication to mitigate the adverse effects on business operations.
Mike Crosby emphasized the importance of staying adaptable and maintaining open lines of communication with partners and clients. This approach is crucial for managing the uncertainties brought about by tariffs and ensuring that businesses can continue to thrive despite these obstacles.
As we move forward in 2025, the channel must remain vigilant and proactive in addressing the challenges posed by tariffs and supply chain issues. By leveraging growth opportunities in the IT hardware, software, and cloud services sectors, and embracing AI-driven innovations, solution providers can navigate this complex landscape and achieve sustained success.
For more insights and detailed analysis, you can read the full article on CRN’s website.