IT Spending Market Growth Analysis - Forecast Trends and Outlook (2025-2034)
Description
The IT spending market size attained a value of USD 3.88 Trillion in 2024 . The industry is expected to grow at a CAGR of 3.50% during the forecast period of 2025-2034 . By { {FORECAST_PERIOD_END}} , the market is expected to reach USD 5.47 Trillion .
Enterprises are investing heavily in data centre systems to support AI workloads, adding to the growth of the IT spending market. With generative AI and large language models requiring immense computational power, businesses are upgrading infrastructure to include high-performance GPUs, low-latency networks, and energy-efficient cooling systems. According to industry reports, data centers are estimated to require USD 6.7 trillion worldwide to keep up with the requirements for compute by 2030.
Several companies are introducing AI-enabled PCs to enhance performance and reduce cloud dependency while boosting device-side performance, complimenting the IT spending market. These PCs are designed for specialized roles that require high computational power. To support with industry reports, 98% of all PCs worldwide are expected to be AI-enabled by 2028. Such advancements are helping to improve the response time and data privacy with reduced bandwidth costs, adding to the market growth.
Infrastructure investments are emerging as a stable growth factor for the IT spending industry. With businesses expanding digital operations, there is a rising need for robust IT infrastructure to support data-heavy applications. Enterprises are upgrading on-premises data centers, investing in hybrid cloud models, and enhancing network architecture to ensure speed, scalability, and security. In November 2024, Peru’s BCP invested USD 650 million in hybrid cloud with Microsoft and Kyndryl to boost digital transformation in Peru. These sustained investments are reflecting innovation and long-term technological competitiveness in the market.
Key Trends and Recent Developments
June 2025
Amazon Web Services invested around USD 13 billion (AUD 20 billion) to enhance its data center infrastructure in Australia by 2029. This initiative helped to meet the rising global demand for artificial-intelligence computing with the inclusion of the construction of three new solar farms to power the expanded infrastructure.
June 2025
Singapore’s state investment firm Temasek joined the AI Infrastructure Partnership, a consortium led by Microsoft, BlackRock, and MGX. The partnership aimed at investing over USD 30 billion in AI-related projects in the United States for focusing on data centers and energy facilities essential for powering applications.
September 2024
BlackRock and Microsoft, along with Global Infrastructure Partners and UAE-based investment firm MGX launched the Global AI Infrastructure Investment Partnership to create a USD 30 billion fund. This helped to develop data centers and associated energy infrastructure necessary to support the massive computational power required by the AI revolution.
August 2023
Indian telecom equipment manufacturer Tejas Networks secured a ₹7,492 crore contract to supply its latest 4G/5G Radio Access Network equipment for Bharat Sanchar Nigam Limited's pan-India network. This helped the company to form strategic partnerships while expanding its global footprint.
Surge in Cloud Services
The rising popularity of public cloud services, fueled by increased utilization and price hikes from vendors, is adding to the IT spending market share. According to industry reports, the global public cloud spending is likely to reach USD 723.4 billion in 2025. As businesses are migrating workloads to the cloud for scalability, flexibility, and cost efficiency, public cloud platforms are witnessing record demand. This is further intensified by price hikes from cloud vendors and a higher overall usage of services like storage, computing, and AI-based tools.
Rise in Cybersecurity Spending
Cybersecurity is reshaping the IT spending market outlook, as organizations are facing a rising volume of sophisticated cyber threats, including ransomware, AI-powered attacks, and data breaches. According to industry reports, the ransomware landscape witnessed 5,414 published attacks on organizations across the world in 2024, further driving investments in cybersecurity spending. Businesses and governments are prioritizing investment in advanced security solutions such as zero-trust architectures, endpoint protection, and cloud security.
Shift to IT Services
The strong focus of enterprises on spending more on IT services when compared to internal staff is driving the IT spending market expansion. This shift stems from the need for specialized expertise in cloud management, cybersecurity, and AI integration, which external providers deliver more efficiently. Supporting with industry reports, the spending on IT services touched USD 1.5 trillion in 2024. This trend is highlighting the reliance of businesses on external partners to remain agile, and competitive in a fast-evolving landscape.
Accelerated Software Spending
The escalating software spending, driven by increased cloud adoption and the need for scalable applications is complimenting the IT spending industry. Enterprises are rapidly investing in Software-as-a-Service (SaaS) platforms and collaboration tools to streamline operations and improve efficiency. For instance, in January 2022, San Francisco-based fintech firm Arc secured USD 161 million in investment to launch a comprehensive finance platform tailored for SaaS companies. The shift toward cloud-native applications is allowing businesses to scale usage based on demand, reduce upfront costs, and support remote and hybrid workforces.
Excessive 5G Deployment
Telecommunications companies are increasingly investing in 5G infrastructure to meet the surging demand for high-speed connectivity, further fostering the IT spending market development. In June 2025, Vodafone and Three UK signed a partnership to form VodafoneThree by committing to invest EUR 11 billion in 5G infrastructure over the next decade. This helped to achieve 99.95% 5G Standalone coverage in the United Kingdom by 2034 while enhancing the broadband services. Such investments are expected to drive growth in communications services spending.
IT Spending Industry Segmentation
The EMR’s report titled “IT Spending Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Breakup by Type Enterprise IT Services Customized Software and App development Services Including IT consulting Others Devices Communications Services Key Insight: The enterprise software segment of the IT spending market is rapidly expanding, driven by rising digital transformation across industries. This segment includes business intelligence software, which help companies make data-driven decisions. Content management software facilitates document control and collaboration. Customer relationship management platforms enhance customer engagement, while enterprise resource planning tools are streamlining operations. Supply chain management software optimizes logistics and inventory, vital for manufacturers and retailers. As demand grows for real-time insights and cloud-based integration, enterprise software remains a cornerstone of IT investments.
Breakup by Region
IT Spending Market Share
Communications Services & Devices to Boost IT Spending
Communications services are contributing to the global IT spending market, driven by the rising demand for connectivity, particularly for mobile and broadband internet. As per industry reports, about 5.5 billion people used the internet in 2024, showing a rise in 227 million individuals from 2023. With 5G deployment accelerating across major economies, telecom companies are investing heavily in infrastructure upgrades. Enterprises are increasingly relying on unified communications platforms to integrate messaging and collaboration tools. With digital connectivity becoming central to business and daily life, the segment is gaining traction.
Devices, including PCs, smartphones, laptops, tablets, and peripherals, represent a critical part of the IT spending market. Enterprises are continuing to refresh hardware to support hybrid work environments, with stronger emphasis on endpoint security. Apple's MacBooks and iPhones, along with Dell and HP laptops, remain top enterprise choices. The education sector also contributes significantly to tablet and Chromebook demand. Ongoing innovations in devices, such as foldable displays or AI-enhanced chips are also keeping this segment competitive within overall IT investment portfolios.
IT Spending Market Regional Analysis
Europe & Asia Pacific to Witness Higher IT Spending
Europe is contributing to the IT spending market, with substantial investments in cloud computing, cybersecurity, and green IT initiatives. Germany, the United Kingdom, and France are increasingly promoting digital transformation via policy support. As per industry reports, IT spending in Europe is estimated to hit USD 1.28 trillion in 2025, further increasing the focus on public sector digitalization and secure data infrastructure. The stringent data protection regulations are also driving the demand for secure IT systems. Moreover, investments in AI and IoT for smart cities and industry 4.0 are reinforcing Europe's place in the global IT ecosystem.
Asia Pacific IT spending market value is growing due to rapid digitization, expanding 5G networks, and government-led tech initiatives in China, India, Japan, and South Korea. Supporting with industry reports, there would be around 1.4 billion 5G connections across Asia Pacific by 2030. India’s Digital India initiative and China’s push for domestic tech innovation are driving the regional market growth. Multinational companies are also outsourcing IT services to Asia Pacific for cost efficiency.
Key Features of the IT Spending Market Report:
Unlock deep insights into evolving IT spending market trends 2025 and beyond. Download your free sample report now to explore investment forecasts, regional growth hotspots, and key player strategies. Whether you're a tech leader or investor, our research helps you make smarter, data-driven decisions in the competitive IT landscape.
More Insights On:
United States IT Spending MarketEurope IT Spending Market
Enterprises are investing heavily in data centre systems to support AI workloads, adding to the growth of the IT spending market. With generative AI and large language models requiring immense computational power, businesses are upgrading infrastructure to include high-performance GPUs, low-latency networks, and energy-efficient cooling systems. According to industry reports, data centers are estimated to require USD 6.7 trillion worldwide to keep up with the requirements for compute by 2030.
Several companies are introducing AI-enabled PCs to enhance performance and reduce cloud dependency while boosting device-side performance, complimenting the IT spending market. These PCs are designed for specialized roles that require high computational power. To support with industry reports, 98% of all PCs worldwide are expected to be AI-enabled by 2028. Such advancements are helping to improve the response time and data privacy with reduced bandwidth costs, adding to the market growth.
Infrastructure investments are emerging as a stable growth factor for the IT spending industry. With businesses expanding digital operations, there is a rising need for robust IT infrastructure to support data-heavy applications. Enterprises are upgrading on-premises data centers, investing in hybrid cloud models, and enhancing network architecture to ensure speed, scalability, and security. In November 2024, Peru’s BCP invested USD 650 million in hybrid cloud with Microsoft and Kyndryl to boost digital transformation in Peru. These sustained investments are reflecting innovation and long-term technological competitiveness in the market.
Key Trends and Recent Developments
June 2025
Amazon Web Services invested around USD 13 billion (AUD 20 billion) to enhance its data center infrastructure in Australia by 2029. This initiative helped to meet the rising global demand for artificial-intelligence computing with the inclusion of the construction of three new solar farms to power the expanded infrastructure.
June 2025
Singapore’s state investment firm Temasek joined the AI Infrastructure Partnership, a consortium led by Microsoft, BlackRock, and MGX. The partnership aimed at investing over USD 30 billion in AI-related projects in the United States for focusing on data centers and energy facilities essential for powering applications.
September 2024
BlackRock and Microsoft, along with Global Infrastructure Partners and UAE-based investment firm MGX launched the Global AI Infrastructure Investment Partnership to create a USD 30 billion fund. This helped to develop data centers and associated energy infrastructure necessary to support the massive computational power required by the AI revolution.
August 2023
Indian telecom equipment manufacturer Tejas Networks secured a ₹7,492 crore contract to supply its latest 4G/5G Radio Access Network equipment for Bharat Sanchar Nigam Limited's pan-India network. This helped the company to form strategic partnerships while expanding its global footprint.
Surge in Cloud Services
The rising popularity of public cloud services, fueled by increased utilization and price hikes from vendors, is adding to the IT spending market share. According to industry reports, the global public cloud spending is likely to reach USD 723.4 billion in 2025. As businesses are migrating workloads to the cloud for scalability, flexibility, and cost efficiency, public cloud platforms are witnessing record demand. This is further intensified by price hikes from cloud vendors and a higher overall usage of services like storage, computing, and AI-based tools.
Rise in Cybersecurity Spending
Cybersecurity is reshaping the IT spending market outlook, as organizations are facing a rising volume of sophisticated cyber threats, including ransomware, AI-powered attacks, and data breaches. According to industry reports, the ransomware landscape witnessed 5,414 published attacks on organizations across the world in 2024, further driving investments in cybersecurity spending. Businesses and governments are prioritizing investment in advanced security solutions such as zero-trust architectures, endpoint protection, and cloud security.
Shift to IT Services
The strong focus of enterprises on spending more on IT services when compared to internal staff is driving the IT spending market expansion. This shift stems from the need for specialized expertise in cloud management, cybersecurity, and AI integration, which external providers deliver more efficiently. Supporting with industry reports, the spending on IT services touched USD 1.5 trillion in 2024. This trend is highlighting the reliance of businesses on external partners to remain agile, and competitive in a fast-evolving landscape.
Accelerated Software Spending
The escalating software spending, driven by increased cloud adoption and the need for scalable applications is complimenting the IT spending industry. Enterprises are rapidly investing in Software-as-a-Service (SaaS) platforms and collaboration tools to streamline operations and improve efficiency. For instance, in January 2022, San Francisco-based fintech firm Arc secured USD 161 million in investment to launch a comprehensive finance platform tailored for SaaS companies. The shift toward cloud-native applications is allowing businesses to scale usage based on demand, reduce upfront costs, and support remote and hybrid workforces.
Excessive 5G Deployment
Telecommunications companies are increasingly investing in 5G infrastructure to meet the surging demand for high-speed connectivity, further fostering the IT spending market development. In June 2025, Vodafone and Three UK signed a partnership to form VodafoneThree by committing to invest EUR 11 billion in 5G infrastructure over the next decade. This helped to achieve 99.95% 5G Standalone coverage in the United Kingdom by 2034 while enhancing the broadband services. Such investments are expected to drive growth in communications services spending.
IT Spending Industry Segmentation
The EMR’s report titled “IT Spending Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Breakup by Type
- Data Centre Systems
- Enterprise Software
- Business Intelligence Software
- Content Management Software
- Customer Relationship Management Software
- Enterprise Resource Planning Software
- Supply Chain Management Software
- Others
Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
IT Spending Market Share
Communications Services & Devices to Boost IT Spending
Communications services are contributing to the global IT spending market, driven by the rising demand for connectivity, particularly for mobile and broadband internet. As per industry reports, about 5.5 billion people used the internet in 2024, showing a rise in 227 million individuals from 2023. With 5G deployment accelerating across major economies, telecom companies are investing heavily in infrastructure upgrades. Enterprises are increasingly relying on unified communications platforms to integrate messaging and collaboration tools. With digital connectivity becoming central to business and daily life, the segment is gaining traction.
Devices, including PCs, smartphones, laptops, tablets, and peripherals, represent a critical part of the IT spending market. Enterprises are continuing to refresh hardware to support hybrid work environments, with stronger emphasis on endpoint security. Apple's MacBooks and iPhones, along with Dell and HP laptops, remain top enterprise choices. The education sector also contributes significantly to tablet and Chromebook demand. Ongoing innovations in devices, such as foldable displays or AI-enhanced chips are also keeping this segment competitive within overall IT investment portfolios.
IT Spending Market Regional Analysis
Europe & Asia Pacific to Witness Higher IT Spending
Europe is contributing to the IT spending market, with substantial investments in cloud computing, cybersecurity, and green IT initiatives. Germany, the United Kingdom, and France are increasingly promoting digital transformation via policy support. As per industry reports, IT spending in Europe is estimated to hit USD 1.28 trillion in 2025, further increasing the focus on public sector digitalization and secure data infrastructure. The stringent data protection regulations are also driving the demand for secure IT systems. Moreover, investments in AI and IoT for smart cities and industry 4.0 are reinforcing Europe's place in the global IT ecosystem.
Asia Pacific IT spending market value is growing due to rapid digitization, expanding 5G networks, and government-led tech initiatives in China, India, Japan, and South Korea. Supporting with industry reports, there would be around 1.4 billion 5G connections across Asia Pacific by 2030. India’s Digital India initiative and China’s push for domestic tech innovation are driving the regional market growth. Multinational companies are also outsourcing IT services to Asia Pacific for cost efficiency.
Key Features of the IT Spending Market Report:
- In-depth quantitative analysis of global and regional IT spending trends.
- Market segmentation by type, and region.
- Insights into cloud, AI, and enterprise software investment patterns.
- Profiles of key players with financials and recent strategic initiatives.
- Forecasts up to 2034 with CAGR and market valuation projections.
- Evaluation of technological advancements shaping IT infrastructure demand.
- Trusted insights backed by rigorous data analysis and industry expertise.
- Up-to-date reports aligned with emerging global technology trends.
- Customized research catering to client-specific strategic needs.
- Global coverage with region-wise market breakdowns and forecasts.
Unlock deep insights into evolving IT spending market trends 2025 and beyond. Download your free sample report now to explore investment forecasts, regional growth hotspots, and key player strategies. Whether you're a tech leader or investor, our research helps you make smarter, data-driven decisions in the competitive IT landscape.
More Insights On:
United States IT Spending MarketEurope IT Spending Market
Table of Contents
169 Pages
- 1 Executive Summary
- 1.1 Market Size 2024-2025
- 1.2 Market Growth 2025(F)-2034(F)
- 1.3 Key Demand Drivers
- 1.4 Key Players and Competitive Structure
- 1.5 Industry Best Practices
- 1.6 Recent Trends and Developments
- 1.7 Industry Outlook
- 2 Market Overview and Stakeholder Insights
- 2.1 Market Trends
- 2.2 Key Verticals
- 2.3 Key Regions
- 2.4 Supplier Power
- 2.5 Buyer Power
- 2.6 Key Market Opportunities and Risks
- 2.7 Key Initiatives by Stakeholders
- 3 Economic Summary
- 3.1 GDP Outlook
- 3.2 GDP Per Capita Growth
- 3.3 Inflation Trends
- 3.4 Democracy Index
- 3.5 Gross Public Debt Ratios
- 3.6 Balance of Payment (BoP) Position
- 3.7 Population Outlook
- 3.8 Urbanisation Trends
- 4 Country Risk Profiles
- 4.1 Country Risk
- 4.2 Business Climate
- 5 Global IT Spending Market Analysis
- 5.1 Key Industry Highlights
- 5.2 Global IT Spending Historical Market (2018-2024)
- 5.3 Global IT Spending Market Forecast (2025-2034)
- 5.4 Global IT Spending Market by Type
- 5.4.1 Data Centre Systems
- 5.4.1.1 Historical Trend (2018-2024)
- 5.4.1.2 Forecast Trend (2025-2034)
- 5.4.2 Enterprise Software
- 5.4.2.1 Historical Trend (2018-2024)
- 5.4.2.2 Forecast Trend (2025-2034)
- 5.4.2.3 Breakup by Type
- 5.4.2.3.1 Business Intelligence Software
- 5.4.2.3.2 Content Management Software
- 5.4.2.3.3 Customer Relationship Management Software
- 5.4.2.3.4 Enterprise Resource Planning Software
- 5.4.2.3.5 Supply Chain Management Software
- 5.4.2.3.6 Others
- 5.4.3 Enterprise IT Services
- 5.4.3.1 Historical Trend (2018-2024)
- 5.4.3.2 Forecast Trend (2025-2034)
- 5.4.3.3 Breakup by Type
- 5.4.3.3.1 Customized Software and App development
- 5.4.3.3.2 Services Including IT consulting
- 5.4.3.3.3 Others
- 5.4.4 Devices
- 5.4.4.1 Historical Trend (2018-2024)
- 5.4.4.2 Forecast Trend (2025-2034)
- 5.4.5 Communications Services
- 5.4.5.1 Historical Trend (2018-2024)
- 5.4.5.2 Forecast Trend (2025-2034)
- 5.5 Global IT Spending Market by Region
- 5.5.1 North America
- 5.5.1.1 Historical Trend (2018-2024)
- 5.5.1.2 Forecast Trend (2025-2034)
- 5.5.2 Europe
- 5.5.2.1 Historical Trend (2018-2024)
- 5.5.2.2 Forecast Trend (2025-2034)
- 5.5.3 Asia Pacific
- 5.5.3.1 Historical Trend (2018-2024)
- 5.5.3.2 Forecast Trend (2025-2034)
- 5.5.4 Latin America
- 5.5.4.1 Historical Trend (2018-2024)
- 5.5.4.2 Forecast Trend (2025-2034)
- 5.5.5 Middle East and Africa
- 5.5.5.1 Historical Trend (2018-2024)
- 5.5.5.2 Forecast Trend (2025-2034)
- 6 North America IT Spending Market Analysis
- 6.1 United States of America
- 6.1.1 Historical Trend (2018-2024)
- 6.1.2 Forecast Trend (2025-2034)
- 6.2 Canada
- 6.2.1 Historical Trend (2018-2024)
- 6.2.2 Forecast Trend (2025-2034)
- 7 Europe IT Spending Market Analysis
- 7.1 United Kingdom
- 7.1.1 Historical Trend (2018-2024)
- 7.1.2 Forecast Trend (2025-2034)
- 7.2 Germany
- 7.2.1 Historical Trend (2018-2024)
- 7.2.2 Forecast Trend (2025-2034)
- 7.3 France
- 7.3.1 Historical Trend (2018-2024)
- 7.3.2 Forecast Trend (2025-2034)
- 7.4 Italy
- 7.4.1 Historical Trend (2018-2024)
- 7.4.2 Forecast Trend (2025-2034)
- 7.5 Others
- 8 Asia Pacific IT Spending Market Analysis
- 8.1 China
- 8.1.1 Historical Trend (2018-2024)
- 8.1.2 Forecast Trend (2025-2034)
- 8.2 Japan
- 8.2.1 Historical Trend (2018-2024)
- 8.2.2 Forecast Trend (2025-2034)
- 8.3 India
- 8.3.1 Historical Trend (2018-2024)
- 8.3.2 Forecast Trend (2025-2034)
- 8.4 ASEAN
- 8.4.1 Historical Trend (2018-2024)
- 8.4.2 Forecast Trend (2025-2034)
- 8.5 Australia
- 8.5.1 Historical Trend (2018-2024)
- 8.5.2 Forecast Trend (2025-2034)
- 8.6 Others
- 9 Latin America IT Spending Market Analysis
- 9.1 Brazil
- 9.1.1 Historical Trend (2018-2024)
- 9.1.2 Forecast Trend (2025-2034)
- 9.2 Argentina
- 9.2.1 Historical Trend (2018-2024)
- 9.2.2 Forecast Trend (2025-2034)
- 9.3 Mexico
- 9.3.1 Historical Trend (2018-2024)
- 9.3.2 Forecast Trend (2025-2034)
- 9.4 Others
- 10 Middle East and Africa IT Spending Market Analysis
- 10.1 Saudi Arabia
- 10.1.1 Historical Trend (2018-2024)
- 10.1.2 Forecast Trend (2025-2034)
- 10.2 United Arab Emirates
- 10.2.1 Historical Trend (2018-2024)
- 10.2.2 Forecast Trend (2025-2034)
- 10.3 Nigeria
- 10.3.1 Historical Trend (2018-2024)
- 10.3.2 Forecast Trend (2025-2034)
- 10.4 South Africa
- 10.4.1 Historical Trend (2018-2024)
- 10.4.2 Forecast Trend (2025-2034)
- 10.5 Others
- 11 Market Dynamics
- 11.1 SWOT Analysis
- 11.1.1 Strengths
- 11.1.2 Weaknesses
- 11.1.3 Opportunities
- 11.1.4 Threats
- 11.2 Key Indicators for Demand
- 11.3 Key Indicators for Price
Pricing
Currency Rates
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