CAMBRIDGE, Mass. – Global technology spending is set to soar, with Forrester, a leading global research and advisory firm, forecasting a surge to $4.7 trillion by 2024. The Asia Pacific region is expected to lead this growth, with a projected increase of 5.7% in tech spend. Countries such as India, China, Vietnam, and Indonesia are anticipated to be at the forefront of this expansion. Meanwhile, North America is predicted to experience a 5.4% growth, driven primarily by software and IT services. In Europe, tech spending is projected to grow by 5.1%, with increased investments in enterprise digital maturity and cybersecurity adoption. The demand for cloud and artificial intelligence technologies is expected to remain strong across all regions, with genAI poised to have a significant impact on the tech market. As the global tech market gears up for a period of substantial growth, various regions and sectors are presented with lucrative opportunities.
Michael O’Grady, principal forecast analyst at Forrester, expressed optimism for 2024, focusing on the economic growth of Asia, fueled by India’s thriving IT export market and significant investments in tech innovation. O’Grady also highlighted emerging technology investments in the United States, driven by the development of agencies under the CHIPS and Science Act, as well as Europe’s recovery, bolstered by increased investment in cybersecurity and the EU’s Coordinated Plan on AI.
The rise in global tech spending is underpinned by several key factors. Investments in software and IT services, generative AI, cloud computing, security, and digital transformation have played a pivotal role in driving this growth. In India, for example, IT exports are projected to reach $194 billion in 2023, with the nation’s tech and service industry revenues potentially climbing to $350 billion by 2025.
North America’s tech expenditure is expected to witness a significant increase, with software and IT services set to constitute 60% of spending by 2027, up from 53% in 2018. Financial services and healthcare sectors are expected to lead the way in tech spending growth in 2024.
After facing economic challenges in 2023, Europe’s tech spending is projected to rebound strongly, with a growth rate almost double that of the previous year. Increased enterprise digital maturity and advanced cybersecurity adoption are among the primary drivers behind the region’s anticipated tech spending growth between 2024 and 2027, estimated at 5.1% to 5.7%.
The forecast points to a dynamic period ahead for the global tech market, presenting substantial growth opportunities across various regions and sectors. GenAI, along with cloud and AI technologies, will play a key role in shaping the industry in the coming years.
As the information technology sector continues to evolve, the demand for innovative solutions and cutting-edge services remains high. With technology spending on the rise, businesses and organizations worldwide are expected to seize these opportunities and drive economic growth in their respective regions. The stage is set for a future that is deeply interconnected and propelled by technology.
