Quick Bite | Global Technology Spend Forecasted to Head Higher
October 20th, 2023 | Article
By: Oscar King
There is no denying that technology has an ever-increasing importance in our daily lives. Whether it’s the excitement about generative artificial intelligence (AI), the latest smartphone, or the ability to communicate easily with friends and family online. The world is becoming more connected via the Internet of Things (IoT).
According to the latest estimates by Gartner Inc. global technology spending is forecast to increase 4.3% from 2022 to USD 4.7 trillion in 2023. As tech talent becomes increasingly competitive, corporates have shifted expenditure towards technologies that enable automation and efficiency to drive growth at scale with fewer employees.
Gartner notes that within its forecasts, corporates’ commitment towards generative AI has not yet significantly been seen in technology spending levels, implying that growth forecasts could be upgraded.
While the overall outlook for technology spending is positive, spending on devices is forecast to remain under pressure in 2023 due to the ongoing concerns about the rising costs of living, decreasing consumers purchasing power.
Note: Gartner’s technology spending forecast methodology relies heavily on thorough analysis of the sales by over a thousand vendors across the entire range of IT products and services, thus it is subject to change.
What does this mean for investors?
On the balance of probabilities, global technology spend is set to increase over the next 5 years, with the implications of demand for generative AI yet to be fully understood. Investors should therefore consider those companies that are leveraged to major technology trends such as the IoT, cloud computing, cybersecurity, and artificial intelligence.
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