NEEDHAM, Mass., Oct. 29, 2024 – Distributor revenues inched up from the previous quarter to $20.2 B in the third quarter of 2024 (3Q24), according to the International Data Corporation (IDC) North America Distribution Tracker (NADT). Year-over-year growth was down a fraction of a percent with continued growth in Software, Personal Computing, and Security, but offset by declines in Network Infrastructure, Services, and AV.
“IT distributors remain a critical component of a successful strategy,” said Ruth Flynn, research vice president, IDC Tracker & Data Products. “The flexibility and product coverage of IT distributors helped balance factors like interest rates and political uncertainty with post-pandemic recovery in a challenging Q3. An example is PC growth of 2% through distribution where overall PC shipments were down 6% in preliminary Q3 reporting.”
Personal Computing sales for 3Q24 came in at $3.6B, which at 2% year-over-year is a second consecutive quarter of growth. The notebook market is showing a return to normalcy at 4.6% year-over-year post the covid volatility. The product mix continues to shift towards AI PC configurations with 24% of notebook revenue now derived from AI PCs, which is up 142% year-over-year.
Software saw 11.8% year-over-year growth settling at $4.4 B. All of the largest software categories grew, but most notably, Embedded Software grew 22.8% year-over-year driven by Cisco as the large amount of their network infrastructure hardware sold in 2023 gets deployed in 2024 and the associated embedded software is upgraded.
Additionally the cybersecurity market grew nicely in 3Q24 with 7.4% year-over-year growth in security software, and 2.6% year-over-year growth in the security appliance market, driven by Palo Alto Networks which solidly holds the number one spot with almost 42% share of sales.
IDC’s North America Weekly Distribution Tracker and 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.
For more information about the North America Weekly and Monthly Distribution Trackers, powered by GTDC, please contact Ruth Flynn at rflynn@idc.com.
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.
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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.
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