Tech recovery is underway -

Ta dah! The tech sector is properly out of the woods, says Forrester Research, with the global IT market set to grow by 7.7 percent to $1.6 trillion this year.

The US will be the best-performing region, with IT spending rising by 8.4 percent. It's benefited from the Greek financial crisis, which weakened the Euro against the dollar - which is why Forrester has increased its forecast from the 6.6 percent rise it predicted back in January. Asia Pacific is set to do well too.

Western and Central Europe will show the lowest expansion, thanks to the stronger Euro and individual countries' debt concerns.

Computer equipment and software will be the strongest product categories, especially PCs, peripherals, and storage equipment; operating system software and applications should do well too.

And communications equipment purchases are looking up, especially for enterprise and small and medium-size business buying. IT services will lag a bit, though.

On an industry basis, US manufacturers, financial services firms, utilities, and healthcare will see the strongest growth in 2010.  Those that were last shall be first, says Forrester - the industries that have had the worst declines over the last couple of years will show the biggest gains in 2010.

"Confirming past research, the largest US industry market for tech products and services is the professional services industry - $103 billion - followed by financial services ($81 billion), and government ($71 billion)," says the report's author, Andrew Bartels.
 
"In terms of 2010 growth prospects, US manufacturers, financial services firms, utilities, and healthcare will see the strongest growth in 2010."

All the same, Forrester counsels caution. A return of the recession could really drive down tech investment, says Bartels, and while vendors should plan for a good 2010 they shouldn't get carried away.