Global enterprise tech spend pushed by secular, pulled by cyclical
Global spending on technology products by businesses and governments will grow 5.8% in 2025, adjusted for inflation and currency movement, which is over twice the pace of GDP, according to Oxford Economics’ latest forecasts. Adding the impact of prices and currencies, global enterprise tech spend will increase by 7.6%, exceeding $6.5 trillion.
What’s driving this growth?
- The increase is led by Asia as cyclical recovery in device spending continues to build. Taiwan and South Korea will have among the fastest rates of tech spending growth in 2025.
- Growth in the Americas spending on software will be 5.1% y/y in 2025, anchored by the US, much of this spent by the information sector. However, Mexico will rank first in region growth, with a 9% y/y gain, driven by device spending from its manufacturing sector.
- Europe’s enterprise spend will pick up to a 4.4% inflation adjusted pace in 2025. Demand for tech in Europe is concentrated in software. Sweden and Ireland will be among the 2025 tech spend growth leaders in Europe.
- Risks to our outlook include potential for greater geopolitical tensions between China and the West, possibly resulting in restrictions on trade, also the economic risks posed by a higher for longer interest rate environment, and possible fallout from greater regulatory control.
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