CAMBRIDGE, Mass. - Forrester (NASDAQ:FORR), a leading global research and advisory firm, has forecasted a significant increase in global technology spending, with the Asia Pacific region at the forefront of this growth. According to Forrester's Global Tech Market Forecast for 2023 to 2027, technology spend is expected to grow by 5.3% in 2024, a notable rise from the 3.5% growth in 2023. This uptick is attributed to heightened investments in software and IT services, including generative AI (genAI), cloud computing, security, and digital transformation.
The Asia Pacific region is anticipated to experience the most rapid growth, with a 5.7% increase in tech spend. Countries such as India, the Philippines, Vietnam, Indonesia, Malaysia, and China are expected to lead the surge. India's IT exports alone are projected to reach $194B in 2023, with the nation's tech and service industry revenues potentially climbing to $350B by 2025.
In North America, a 5.4% growth is forecasted, with software and IT services poised to constitute 60% of the United States' tech expenditure by 2027, up from 53% in 2018. Sectors such as financial services and healthcare are predicted to witness the fastest growth in tech spending in 2024.
Europe's tech spend is projected to grow by 5.1%. After facing economic challenges in 2023, the region is expected to recover and see a growth rate nearly double that of the previous year. From 2024 to 2027, European tech spending is anticipated to grow between 5.1% and 5.7%, driven by increased enterprise digital maturity and advanced cybersecurity adoption.
Michael O'Grady, principal forecast analyst at Forrester, commented on the positive outlook for 2024, highlighting Asia's economic growth driven by India's burgeoning IT export market and substantial tech innovation investments. He also noted significant investments in emerging technologies in the US, fueled by the development of agencies under the CHIPS and Science Act, and Europe's recovery aided by enhanced investment in cybersecurity and the EU's Coordinated Plan on AI.
Overall, the demand for cloud and AI technologies remains robust across all regions, with genAI expected to significantly boost the tech market over the next three years. The forecast, based on a press release statement, indicates a dynamic period ahead for the global tech market, with substantial growth opportunities across various regions and sectors.
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