HG Insights Projects External IT Spending to Near $5 Trillion by 2025

HG Insights' recent IT Spend Report reveals a projection that external IT spending will approach $5 trillion by 2025, signaling a pivotal moment for the B2B market. This enterprise-focused analysis diverges from broader forecasts by detailing business IT budget allocations across four primary categories: Software, Hardware, Services, and Communications.

Software emerges as the fastest-growing sector, with an anticipated global spend of $1.5 trillion, propelled by investments in ERP Applications, Industry-Specific Applications, and Security. IT Services, the largest category, is expected to hit $2.1 trillion, with Cloud Services and IT Consulting experiencing significant growth. Hardware spending is forecasted at $757.1 billion, led by Client Computing and Network Infrastructure, while Communications, the smallest category, is projected to reach $470.7 billion, driven by Mobile Services and Fixed Data.

Geographically, the Americas are set to dominate IT spending, exceeding $2 trillion for the first time, with Asia-Pacific and Europe, the Middle East, and Africa following. This regional analysis highlights the global scale of IT investment and diverse market priorities. Rohini Kasturi, CEO of HG Insights, underscores the critical role of strategic planning in adapting to the dynamic IT environment, offering businesses valuable insights to navigate regulatory, economic, and public sentiment shifts.