IT Services Spend Will Reach $2 Trillion By 2028: Forrester
CIO Dive, Tuesday, May 7th, 2024
Tepid growth this year will give way to a landslide of cloud infrastructure spending driven by AWS, Microsoft and Google Cloud, the analyst firm said.
The global IT services market will balloon to $2 trillion by 2028, as enterprises pursue cloud modernization, according to a new Forrester report. The firm reviewed public financial documents, conducted executive interviews and used additional consumer and executive data in its analysis.
Forrester expects enterprise IT services spend to increase an average of 16% annually through 2028, despite relatively tepid near-term growth. Economic headwinds spurred by trade conflicts, geopolitical tensions and budgetary caution have taken a bite out of IT services revenue projections this year, the report said.
Hyperscalers AWS, Microsoft and Google Cloud are driving the strongest growth by category, with IaaS spending expected to double in five years. By 2028, Forrester expects public cloud infrastructure providers to command 15% of the IT services market, up from 8% in in 2022.