Forrester: Global Tech Spend To Surpass $4.9 Trillion In 2025
Generative AI, cybersecurity, and cloud solutions are poised to drive growth by
According to Forrester’s Global Tech Market Forecast, 2024 To 2029, software and IT services combined will account for
The report further states that investments in generative AI will drive industry-specific growth. For example, industries including financial services, retail, and media will increasingly adopt AI-enabled tools to enhance customer experiences and operational efficiency. This growth in genAI investments will subsequently force businesses to reposition their workforce, compete for tech talent, and lower technical debt.
Noteworthy highlights from the report include:
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Asia Pacific tech spend will grow5.6% in 2025. The region will witness a surge in real GDP growth that far exceeds the global average, led by countries includingIndia ,the Philippines ,Vietnam , andIndonesia . Government initiatives inChina andIndia , and increased investment in generative AI and semiconductors inJapan andSouth Korea , will help drive tech spend.India will see the fastest growth, with tech spend expected to increase by9.6% in 2025. -
North American tech spend will grow by
6% in 2025. Excluding staffing costs, US tech spend will exceed for the first time in 2025, with$2 trillion 63% driven by financial services and insurance, government, media and information, and professional and business services. The US leads with41% of global tech spending and46% of AI software spend, underscoring its domination in generative AI and cloud computing adoption. -
European tech spend will grow by
5% in 2025. European tech spend will exceed for the first time in 2025. Software and IT services will capture$1.5 trillion 78% of tech spend inEurope by 2029 — up from68% in 2016 — as enterprises spend more on cloud, security, generative AI, and the digital economy. More than40% of European tech spend comes from financial services, media and information, and professional and business services.
“Over the next five years, technology investments will reshape industries at an unprecedented pace,” said Michael O’Grady, principal forecast analyst at Forrester. “GenAI, cloud technologies, and cybersecurity will take center stage, transforming how businesses operate and deliver value. Companies that prioritize these investments will not only strengthen their competitive edge but also achieve sustainable growth, but it’s important that they also balance their rapid tech investments with ongoing efforts to manage legacy systems and reduce technical debt.”
Resources:
- Read more about Forrester’s Global Tech Market Forecast, 2024 To 2029, in this blog or download the report here (client access required).
- Read more about Forrester’s US Tech Market Forecast, 2024 To 2029, in this blog or download the report here (client access required).
About Forrester
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Hannah Segvich
hsegvich@forrester.com
Source: Forrester