Investment into technology services and next-gen innovations will grow in 2024, as reported in a new study from Forrester. The forecasting report, called the “Global Tech Market Forecast, 2023 to 2027“, predicts that the spending on technology will go up to 5.3%, up from 3.5% in 2023.
This roughly translates to an estimate of US$4.7 trillion for global tech spend.
In regional terms, the Asia Pacific will experience the fastest economic growth, with six Asian countries forecasting to have the highest increase in gross domestic product (GDP). This will be reflected in how this region is expected to see economic expansion, take the lead on market growth, and will likely increase its tech spend by 5.7%.
Of course, next-gen digital innovations that will drive this growth include generative artificial intelligence (Generative AI); green and sustainable tech; and cyber-security. Notably, solutions providers operating in this space have been partnering up with hyper-scalers to ensure there is enough computing power.
Technology financing is not the only critical driver as there are also socio-economic factors that have been reported to be major contributors, such as the still-growing digital economy for the Asia Pacific region.
Based on these three digital trends, Generative AI will be in the spotlight for the foreseeable future as many businesses across the Asia Pacific have already spent or are keen to invest in this next-gen AI-powered digital platform. Countries in Asia that can be included, in no proper order, are Malaysia, India, the Philippines, Vietnam, Indonesia, and China.
As is, investments in Generative AI have been predicted to reach US$227 billion by 2030.
With IT services, it is very much about exports (US$194 billion in 2023) and technology solutions (US$350 billion by 2025) for the Asia Pacific. Other economic powers, such as the North American and European regions, are also set to invest in new digital technologies.
For the US, it is expected to see higher spending — at 5.4% — as its goal is to expand silicon chip manufacturing as well as speed up healthcare innovation and digital financial services. As for Europe, as it has many mature businesses that have already deployed digital technologies, it will be the one spending less for this year — 5.1%.
“Technology companies faced significant economic headwinds this past year, but 2024 promises a better outlook. (Even so,) Asia will see the fastest economic growth, due to India’s growing IT export market as well as significant investments in tech innovation,” said Michael O’Grady, Principal Forecast Analyst, Forrester.
Those keen on wanting some additional information can also check out the new blogpost that appeared on Forrester’s website.