Software and IT service purchases to dominate global tech spend

Technology spending is forecasted to accelerate and grow by 5.3% in 2024.

Globally, users will spend $4.7 trillion on technology this year, research and advisory company Forrester said.

One of the main contributors to the acceleration of technology spending is increased demand and investments in software and IT services, including generative AI, cloud, and security, among others.

Economic growth in the Asia Pacific region is also expected to significantly contribute to technology spending in 2024.

The majority of investments will go to software and IT services. Investments in generative AI services alone are expected to reach nearly $330 billion by the end of the decade.

"Technology companies faced significant economic headwinds this past year, but 2024 promises a better outlook," said Michael O'Grady, principal forecast analyst at Forrester.

While Asia Pacific will be the fastest growing region, with India being one of the largest exporters of technology services, expenditure on technology will grow significantly in other parts of the world, too.

North America will grow by 5.4%, with software and IT services set to capture 60% of US tech spend in 2027.

After a challenging 2023, the European economy is expected to recover this year and almost double its growth rate compared to the previous year.

“In Europe, greater investment in cybersecurity and the EU's Coordinated Plan on AI will help the region bounce back. Demand for cloud and AI is strong across all regions, with genAI expected to boost the tech market over the next three years," O'Grady said.

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