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North American distributors’ revenue growth continues in Q3 2022, reports IDC

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IDC reports that the total revenue reported by the top-tier North American distributors grew 9.3% year over year to $21 billion in Q3 2022, according to its North America Distribution Tracker (NADT). In Q2 2022, the total revenue by the top-tier North American distributors was $19.3 billion with an annual growth of 5.6%. 

The strong growth across product categories indicates the resiliency of tier 1 IT distributors amidst economic headwinds and generally slower markets. IT vendors are relying on their distributor partners to reach more buyers, as commercial buyers continue to prioritize IT investments. 

IDC north American distributors

Among the 14 product groups covered in the NADT, only peripherals and accessories decreased in revenue by 8.2% year over year. Audio/Video (AV), storage, and imaging remained flat year over year while sales in the remaining ten categories increased with the largest gain of 55% in consumer electronics. 

Notebook sales, which grew 9.3% year over year, have helped personal computing continue its post-pandemic stabilization in Q3 2022. Additional momentum was from the desktop sales revenue, which grew 7.3% year-over-year. Despite a small year-over-year decline, personal computing retained the largest share of the product mix at 22.4% in Q2 2022. 

IDC reports that the network infrastructure started showing signs of movement after a slow first half with $2 billion in sales in 3Q22 and 9.1% annual growth. The key products driving sales in this market were Ethernet switches with a growth of 10.7% year over year and enterprise-class WLAN devices with an annual growth of 34.9%. 

Software product group sales grew 8.4% in Q3 2022 as compared to Q3 2021. Most of the largest software categories had double-digit growth. The highest growth in this market was by the security software, which grew by 13.4%. Storage software grew 11.4%, however, in Q2 2022, this category posted the largest year-over-year growth of 27.7%. Palo Alto Networks saw strong sales in the security software space with a 34.8% share of the category and 66.4% year-over-year growth. 

Source: IDC 

Read next: Cloud data security – challenges and priorities for organizations

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