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Software and Network Infrastructure Sales Continued to Grow, While Device Sales Declined in the Second Quarter of 2023, According to IDC's North America Monthly Distribution Tracker, Powered by GTDC

IT distributor revenue topped $19.5 billion in the second quarter of 2023, reflecting a year-over-year decline of 7.2%, as reported in the North America Distribution Tracker (NADT) from International Data Corporation (IDC). For the second consecutive quarter, the device categories of personal computing and audio/video (AV) saw double-digit year-over-year declines of 22.3% and 23.6% respectively. However, these declines were slightly less severe than experienced in the first quarter of 2023. In contrast, the software and network infrastructure product groups enjoyed continued growth in the quarter – up 2.7% and 43.2% year-over-year respectively – gaining some additional share of overall distribution revenues in North America.

"We are seeing companies continue to prioritize spend on IT infrastructure projects and distribution is a key partner to source the multi-vendor solutions these companies need," said Ruth Flynn, research vice president, IDC Tracker & Data Products.

Software gained 1.7 points of share year over year, just edging out personal computing to hold the largest share of second quarter distribution revenues, which is a first for this channel. The strength of software product sales through distribution is driven by system infrastructure software markets such as data replication and protection software and network security software.

Network Infrastructure saw the largest year-over-year growth of any product group, which resulted in a 4.7-point distributor revenue share increase for this market. Ethernet Switches and Access Points are the products that are driving growth with Cisco and HPE as the clear top performers. Additionally, this growth in hardware sales translates into a growth in the sales of the upgrades and renewals of the software embedded on these hardware products.

A graphic illustrating North America distribution revenue across the four largest technology categories (personal computing, services, software, network infrastructure, and AV) over the previous five quarters is available by viewing this press release on IDC.com.

IDC's North America Weekly Distribution Tracker and IDC's North America Monthly Distribution Tracker are built on the exclusive partnership between IDC and the Global Technology Distribution Council (GTDC) and provides the industry's most comprehensive view of technology distribution data and market trends in the U.S. and Canada. The data in these Trackers is actual sales data collected weekly from sales receipts across the largest distributors in North America for more than 1,000 brands over several years. This data is mapped to IDC's taxonomy with over 200 categories organized into 13 distinct product groups with detailed product attributes across categories.

About IDC Trackers

IDC Tracker products provide accurate and timely market size and segmentation, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, monthly, and weekly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

For more information about the North America Weekly and Monthly Distribution Trackers, powered by GTDC, please contact Ruth Flynn at rflynn@idc.com.

Click here to learn about IDC's full suite of data products and how you can leverage them to grow your business.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

About the GTDC

The Global Technology Distribution Council is the industry consortium representing the world's leading tech distributors. GTDC members drive an estimated $150 billion in annual worldwide sales of products, services, and solutions through diverse business channels. GTDC conferences support the development and expansion of strategic supply-chain partnerships that continually address the fast-changing marketplace needs of vendors, end customers and distributors.

All product and company names may be trademarks or registered trademarks of their respective holders.

IT distributor revenue topped $19.5 billion in Q2 2023, reflecting a year-over-year decline of 7.2%, as reported in the IDC North America Distribution Tracker.

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