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IT distribution off to a flying start in 2021

Market intelligence company CONTEXT is forecasting IT distribution in EMEA to grow by between 6% and 12% in the first three months of 2021.

This follows a strong Q4 2020, when distribution sales in the region hit a record €26.3 billion, representing year-on-year growth of 10.2%.

With ongoing lockdowns continuing to drive demand in the homeworking and studying categories, CONTEXT is predicting growth of 25% in mobile computing in Q1 2021, 25% in monitors, 20% in computing components and 30% in computing accessories.

Other fast growing areas include AV kit, up 30% year-on-year in Q1 2021 (estimated); smart home products, up 14%; and SaaS apps that meet the needs of remote workers in areas like office productivity, security and network management.

CONTEXT Global MD Adam Simon said: “Everything we’re hearing is of continued strong demand in key technology areas supporting home working, such as mobile computing. In fact, our guidance would have been even higher if distributors were able to access all the stock they needed to meet demand. One of the biggest challenges for the industry this year will be the supply chain.”

Product areas expected to do less well in Q1, partly for COVID-related reasons, are desktop PCs (-16%), LFDs (-5%) and other displays (-7%).

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TechnologyReseller: 2021