Forecasts show continued focus on IT spending

Author Moonshot.news

Published on: 10/12/2025

Worldwide spending on information technology (hardware, software and IT services) has increased 14% in 2025. While there is much speculation about how and when this cycle may unwind, there is so far no evidence of any slowdown taking hold, and surveys continue to indicate that most businesses plan to increase IT budgets again in 2026 despite lingering anxiety around the overall economy, market research firm  IDC says forecasting that IT spending will increase by 10% in 2026. A survey by consultancy PwC confirms the picture showing that more than three-fifths (61%) of investors say technology will be the sector attracting the most investment over the next three years, well ahead of every other sector.

The IT spending reported by IDC represents the fastest year of growth since 1996 when the launch of Windows 95, expanding PC usage and internet adoption meant  IT spending. 

“Some 30 years later, AI infrastructure investment is driving another supercycle of tech spending  with IT spending set to reach $4.25 trillion this year. Total ICT spending (which includes telecom and business services, in addition to IT spending) will reach almost $7 trillion this year.”

“AI is the headline of IT market performance in 2025, but most of the actual AI investment this year is concentrated in service provider infrastructure,” says Stephen Minton, Group Vice President at IDC. 

“This AI investment is partly supported by enterprise spending on core IT products and services, which make up the strong revenue streams of the service providers investing heavily in AI deployment. In turn, this AI investment is supporting economic growth and stability, which in turn is supporting the ability of businesses to maintain their investments in cloud services and enterprise software. As a result, we’re currently experiencing a virtuous cycle of tech-driven macroeconomic growth.”

“There are headwinds and downside risks in the 2026 outlook, including an expected memory component shortage which may drive up PC prices next year,” says Minton. 

“Technology demand has been resilient this year in the face of uncertainty around tariffs and a sluggish global economy, but our baseline forecast calls for a stable economy, supported in part by ongoing AI investment. Even in a moderate recession, most IT spending would continue. The likelihood of a ‘perfect storm’ similar to the IT market crash of 2001 remains low.”

Highlights from the PwC survey comprising 26 countries:

• 61% say technology will be the sector attracting the most investment over the next three years—well ahead of every other sector.
• 92% are calling on companies they invest in to increase capital allocation to technological transformation and cybersecurity (88%)—with growth and resilience expected to go hand-in-hand.
• Roughly three-fourths (74%) expect higher growth from companies that pursue opportunities across traditional sector boundaries.
• Investors are looking for transparency on AI: Less than two-fifths (37%) say companies disclose enough about AI strategies and policies.
• More than two-fifths want greater disclosures around AI related investments (42%), returns (42%) and innovation strategies (47%).

“The overwhelming support for investment in technological transformation comes as investors see companies realising gains from AI adoption. Over the past year, investors report AI-driven improvements in productivity (86%), profitability (71%) and revenue gains (66%) in the companies they invest in”, PwC says.

“Despite qualified enthusiasm for investment in technology, expectations of global growth are subdued amid a challenging macroeconomic environment—only 28% expect moderate to significant improvement in global growth over the next year.”

“Zooming in from the global picture, investors believe the United States will be the most attractive destination for investment (67%) over the next three years, ahead of India (45%), Chinese Mainland (32%), the United Kingdom (26%) and the United Arab Emirates (26%).”

“Conservative expectations of growth can be partially explained by investors’ assessment of the threat landscape. More than half of respondents (55%) describe high or extreme exposure to cyber risk at the companies they invest in or cover, and nearly as many (53%) see the same in technological disruption. Inflation (44%), macroeconomic volatility (43%), and geopolitical conflict (42%) are also weighing on sentiment.”