Global Tech Spend To Reach $4.7 Trillion In 2024: Forrester (Photo by Marc-Olivier Jodoin on Unsplash)

Forrester, a renowned global research and advisory firm, forecasts that global tech spending will reach $4.7 trillion in 2024, witnessing 5.3 percent growth this year. It is a significant rise from the 3.5 percent growth in 2023. Forrester says that software and IT services will capture 69 percent of global tech spending in 2027.

“There’s a lot to be excited about when it comes to the technology market in 2024,” wrote Michael O’Grady, forecast analyst, and data researcher Michael Kearney, in a blog. This is due to certain factors, including the huge demand for software, the wide-ranging possibilities of generative AI, and the rapid rise of the Asia-Pacific market. Forrester also predicts that there will be improvements in the economic conditions this year due to healing supply chains, declining inflation, and lower energy prices.

As per the findings, India is among several Asian markets that will register the highest growth rates in tech spending in 2024. India is set to witness a 9.5 percent growth in domestic and government tech spend this year. Notably, the Asia-Pacific region is expected to mark 5.7 percent tech spend growth. The findings also mentioned that the digital economy is estimated to account for 41.5 percent of GDP in China.

In North America, software and IT services will capture 60 percent of US tech spend by 2027. Financial services and healthcare will witness the fastest tech spending growth this year in this region. Meanwhile, the European economy is on the path of recovery. Europe is likely to see tech spend growth between 5.1 percent and 5.7 percent between 2024 and 2027.

According to Forrester”s findings, custom and off-the-shelf software revenues will see double-digit growth. It is worth mentioning that investments in generative AI software are forecast to grow 36 percent annually between 2023 and 2030, reaching $227 billion.