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,
5.6% in the
Middle Eastand 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 billionon tech. As cloud adoption accelerates, Nigeriaand South Africawill see the potential for fast R&D investment growth over the next two years.
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 the Asia Pacificregion.
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.
Europe. High inflation and weak business confidence will persist in the region. Additionally, the UK, Italy, and Germanywill 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
- 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.