Forrester: Global Tech Spend Hit $4.4T In 2023

CAMBRIDGE, Fair . — Despite concerns about the outlook for the global economy in 2023, Forrester's Global Technology Market Outlook 2022 to 2027 forecasts global technology spending to grow 4.7% to $4.4 trillion in 2023.

North America will see slightly stronger growth of 5.1%, Forrester forecasts, but the Middle East and Africa (MEA) and Asia-Pacific (APAC) will see the fastest growth of the region, despite macroeconomic challenges related to slower liquidity and labor restrictions Map Technology Spending Markets . Markets and geopolitical factors. Confusion.

By 2027, hardware, software and IT services will account for 66% of global technology spending, up from 60% before the pandemic. The researchers believe that the growth of cloud applications and platform services will contribute to this growth.

Forrester predicts that the public cloud market will reach $1 trillion by 2026, accounting for nearly a quarter of global technology spending.

"Despite macroeconomic uncertainty, global technology spending will exceed $4 trillion in 2023 as technology remains critical to business," said Michael O'Grady, senior analyst at Forrester. "Over the next five years, we expect continued growth in technology spending around the world. Increasing R&D investment in the Middle East & Africa, Asia-Pacific, and North America. Asia-Pacific investing more in IT Software and Services; Accelerating cloud adoption in the Middle East, Africa and Europe will continue to drive technology spending."

In 2023, Forrester predicts an increase in local technology spending;

• 5.6% in the Middle East and Africa. By 2025, Africa's internet economy could reach $180 billion, more than 5% of the continent's GDP, while the Saudi government plans to spend $25 billion on technology. As cloud adoption accelerates, Nigeria and South Africa will see potential for rapid growth in R&D investment over the next two years.
• 5.4% in the Asia Pacific region. China's technology spending is expected to grow at least 7% annually between 2024 and 2027. Investing in software and IT services is a priority for large Japanese companies, while India's domestic technology spending is expected to grow 9.6% through 2023. Long term In the long term, R&D investment will also drive technology spending in the Asia-Pacific region.
• 5.1% in North America. Rising interest rates, high inflation and weak real GDP growth are undermining the outlook for tech spending in North America. In 2023, technology spending growth in the United States will be 5.4%, compared to 7.4% last year. However, tech purchases in North America are expected to increase from 5.6% to 5.8% from 2024 to 2027, thanks to increased investments in research and development.
• 3.6% in Europe. High inflation and low business confidence will persist in the region. In addition, unemployment rates in the UK, Italy and Germany will rise as their economies enter recession. However, technology purchases are expected to increase by 4.8% to 5.5% between 2024 and 2027, driven by corporate adoption of cloud technology, the researchers report.