Global Tech Spend To Grow 5.3% In 2024, Reaching $4.7 Trillion

CAMBRIDGE, MA. – Forrester has released new global technology market forecasts for 2023 and 2027, predicting that improving economic conditions will help global technology spending grow by 5.3% in 2024, up from 3.5% in 2023.

"Technology companies faced significant economic challenges last year, but 2024 promises better opportunities," said Michael O'Grady, senior forecast analyst at Forrester. “Asia will see the fastest economic growth, driven by the growth of India's IT export market and significant investment in technological innovation. Likewise, in the US, large investments in new technology by major CHIPS institutions and the development of the Science Act will increase technology spending. In Europe, cybersecurity is increasing investment, and a coordinated EU AI plan will help improve the region. Demand for cloud and artificial intelligence is high in all regions, and genAI is expected to drive the technology market over the next three years.

The study shows that this growth is mainly due to two factors: increased spending on software and IT services, including generative artificial intelligence (genAI), cloud, security and digital technologies, and economic growth in the Asia-Pacific region.

By 2027, software and IT services will account for 69% of global technology spending, and investment in genAI software is expected to reach $227 billion by 2030, with a compound annual growth rate of 36%. Countries in Asia, particularly India, the Philippines, Vietnam, India, Malaysia and China, will see the fastest growth in technology spending in 2024.

However, North America is expected to grow strongly by 5.4% in 2024. Software and IT services will account for 60% of US technology spending in 2027, up from 53% in 2018. Financial services and healthcare will see the largest growth in technology spending, while retail, manufacturing, transportation and logistics will slow to record growth in 2024. .

The Asia-Pacific region will grow by 5.7%. India is one of the largest exporters of technology services, with IT exports expected to reach $194 billion by 2023 and total revenue from the technology and services industry could reach $350 billion by 2025.

Europe will grow by 5.1%. After a difficult 2023, the European economy will recover in 2024 and grow almost twice as fast as in the previous year. In the long term, technology spending in Europe will increase by 5.1-5.7% between 2024 and 2027, driven by the increasing digital maturity of the business world and the adoption of more advanced cybersecurity tools.

More information can be found here.