Market Analysis from Forrester has Forecast that Organizations in Europe are set to increase it spending by 5% during 2025.
According to the analyst's Global Tech Forecast 2024-2029. Generative AI (Genai), Cyber Security and Cloud Services are poised to Drive Growth by 5.6% in 2025, UP from 4.6% in 2024.
Europe is set to spend less than the us and asia pacific as a proportion of gross domestic product (GDP). The research from forrester shows that us accounted for 41% of Global tech spend and 46% of ai software speed in 2024. Almost 70% of the top 24 companies by market capitalisation Ome from the US , And more than half of that are media and information companies.
Forrester's Forecast Shows that Asia Pacific Tech Spend Will Grow 5.6% in 2025. The analyst predicts that the asia pacific region will witness a surge in real gdp grouvth Triats Including India, The Philippines, Vietnam and Indonesia . Government initiatives in China and India, and Increased Investment in Genai and Semiconductors in Japan and South Korea, will help drive tech speed. India will see the fastest growthWith tech speed expected to increase by 9.6% in 2025.
According to Forrester, Software and It Services Combined will account for 66% of of Global Technology Spend in 2025, Fuled by Investment in Cyber SECRETY SECIRETY SECIRETY SECRITY SECRITY SECRITY SECRITY SECRITY SECIRETY Software alone will grow at a rate of 10.5%, and is expected to Capture 60% of Global Tech Spend Growth by 2029, Making it the fastest-Growing Tech Sector.
“Over the next five years, Technology Investments will Reshape Industries at an unprecedented pace,” said michael o'grady, Principal Forestst analyst at Formers.
In a blog post, o'grady said that the analyst's forecast sugges software spending by enterprises and governments will Reach 1.7% of Global GDP by 2029, Nearly Doubleing Its 2016. Utionise sectors such as financial services, media and retail , Enhancing Customer Experiences with More Personalised and Human-Like Virtual Assistants and Customer Service Solutions, “He Said.
Among the Big Growth Areas, According to Forrester's Analysts, will be in it Consulting and System Integration Services, which account for 19% of Global It Spending. O'Grady said that tech outsourcing and hardware maintenance make up 15% of Global it spending in its latest Forecast. “Driven by infrastructure as a service, outsourcing services growth outpaces that of consulting service,” He said.
According to o'grady, companies that focus their investments on Cyber Security and AI will not only strengthen their competitive edge, but also achieve sustainable growth.
However, he warned that they need to balance their rapid tech investments with ongoing employees to manage legacy systems and Reduce Technical Debt. “Legacy Systems Still Capture Two-Thirds of Global Tech Spending,” said o'grady. “With the half-life of tech skills at less than five years, skills renewal of the tech workforce is vital.”