Forrester: Global Tech Spend Will Reach $4.4 Trillion In 2023 Despite A Turbulent Macroeconomic Environment
Software and IT services, fueled by cloud, will capture nearly two-thirds of global tech spend by 2027
Despite facing a difficult 2023, tech executives can accelerate their organizations’ growth by both improving operational efficiency and investing in areas such as research and development, cybersecurity, and enterprise digital transformation. In 2023,
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5.6% in the
Middle East andAfrica . 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 tech. As cloud adoption accelerates,Nigeria andSouth Africa will see the potential for fast R&D investment growth over the next two years.
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5.4% in
Asia Pacific . China’s tech spend is forecasted to see at least 7% annual growth rates from 2024 to 2027. Software and IT services investment is a high priority for large Japanese companies, while India’s domestic tech spend grows by 9.6% in 2023. Longer term, R&D investment will also encourage tech spend in theAsia Pacific region.
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5.1% in
North America . Interest rate hikes, high inflation, and low real GDP growth are dampening North America’s tech spend outlook. In 2023, US tech spend growth will be 5.4% — down from 7.4% the year prior. Yet North American tech purchases are expected to grow between 5.6% to 5.8% from 2024 to 2027 due to increased R&D investments.
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3.6% in
Europe . High inflation and weak business confidence will persist in the region. Additionally, theUK ,Italy , andGermany will all see unemployment rates rise as their economies fall into recession. Tech purchases are forecasted to grow, however, between 4.8% and 5.5% from 2024 to 2027, enabled by enterprise cloud adoption.
“Despite macroeconomic uncertainty, global tech spend will surpass more than
Resources:
- Read Forrester’s Global Tech Market Forecast, 2022 To 2027 report (client access required).
- Learn more about Forrester’s forecast for global tech spend through 2027.
- Learn which actions tech executives can take to navigate the current economic downturn.
- Explore Forrester’s Planning Guide 2023: Technology Executives report.
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ikantor@forrester.com
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