As I come from a literary background, I endeavor to give the articles you read here, on IoT Evolution World, Future of Work News and elsewhere as much of a palatable spin as possible. I love words, and I hope you enjoy the time spent reading them.
That said, sometimes numbers and raw data ride roughshod over fanciful phrasings, and that’s totally okay. It’s great to consume measurable insights grounded in trends, statistics, and waves of market intelligence. After all, life is about balance.
Case in point is a recent report this quarter from Forrester. According to Forrester’s (News - Alert) Global Tech Market Forecast, 2022 to 2027, global tech spend is expected to grow 4.7% to reach an enormous $4.4 trillion. Europe, the Middle East and Africa (EMEA) and Asia-Pacific (APAC) will likely experience the fastest regional tech spend growth the world over, despite the “… turbulent macroeconomic challenges of slowing liquidity, tight labor markets, and geopolitical turmoil.”
By 2027, Forrester sees tech software and IT services capturing approximately 66% of global tech spend; this is up 60% from our pre-pandemic era. Cloud applications and platform services are sure to aid in this growth, and Forrester predicts that the public cloud market will reach $1 trillion by 2026, as well.
Per Forrester, tech executives worldwide can adeptly accelerate organizations’ growth trajectories by improving operational efficiencies and investing in R&D, cybersecurity, and digital transformation. So, let’s dive into potential investment figures pertaining to global tech spend:
- 3.6% – 5.6% in EMEA – One thing Europe must handle is its high inflation and weaker senses of business confidence. Unemployment rates could rise, so purchases in tech are forecasted to grow between 4.8% and 5.5% by 2027 in order to fill gaps. Also, by 2025, Forrester forecasts that Africa’s internet economy may reach $180 billion (i.e. more than 5% of the entire continent’s GDP). Plus, the Saudi government plans to spend another $25 billion on technologies like cloud adoption.
- 5.4% in APAC – Unsurprisingly, China’s tech spend is expected to see big growth in the next four years, as well; approximately 7% annually. In Japan, investments in software and IT services are becoming weightier priorities. In India, tech spend may grow by 9.6% in the very near future.
- 5.1% in NA – North America’s tech spend outlook, not completely dissimilar to Europe’s, has been dampened by high inflation, interest rate hikes, and low GDP growth. (Not to mention unease surrounding the recent collapse of SVB and the considerations of other financial areas that might be susceptible to such sudden crumble.) In 2023, the United States spend growth will be 5.4%, Forrester has reported; this is down from 7.4% in 2022. However, increased R&D could bolster future tech purchases. Time will tell.
“Despite macroeconomic uncertainty,” said Michael O’Grady, Principal Forecast Analyst at Forrester, “global tech spend will surpass more than $4 trillion in 2023, as technology remains crucial for businesses. Over the next three to five years, we anticipate tech spend growth to increase even further globally.”
Edited by Greg Tavarez