Predictions from Forrester reveal that global technology spend will significantly accelerate by 5.6% in 2025 to reach $4.9 trillion, increasing from $4.7 trillion in 2024.
The rapid adoption of software, IT services, generative AI (genAI), and cloud technologies is expected to drive market growth, with Asia Pacific and North America playing a pivotal role and expected to experience the most rapid growth.
Global tech market forecast
According to the report titled Global Tech Market Forecast, 2024 To 2029, software and IT services combined will account for a significant 66% of global technology spend in 2025. This dominance is driven by increased investment in cybersecurity solutions and the modernisation of legacy systems.
Software alone will become the fastest-growing tech sector with a 10.5% growth rate. Forrester expects it to capture 60% of global tech spend growth by 2029.
Asia Pacific tech spend
The Asia Pacific tech spend is set to grow at an impressive 5.6% in 2025, exceeding the global average GDP growth. This growth is led by countries such as India, the Philippines, Vietnam, and Indonesia.
Government initiatives in China and India, as well as increased investment in genAI and semiconductors in Japan and South Korea, will drive tech spending in the region.
Forrester expects tech spending in India to increase by 9.6% in 2025, the fastest growth rate.
“Over the next five years, technology investments will reshape industries at an unprecedented pace,” said Michael O’Grady, principal forecast analyst at Forrester. “GenAI, cloud technologies, and cybersecurity will take centre stage, transforming how businesses operate and deliver value. Companies that prioritise these investments will not only strengthen their competitive edge but also achieve sustainable growth, but it’s important that they also balance their rapid tech investments with ongoing efforts to manage legacy systems and reduce technical debt.”
