IDC: Global ICT Spend to Reach $4 Trillion in 2026

Global spending on information and communications technology (ICT) is forecast to reach $4 trillion in 2026 and surpass $6 trillion by 2029, according to the latest update of the International Data Corporation’s (IDC) Worldwide ICT Spending Guide Enterprise and SMB by Industry. Excluding the consumer segment, the ICT market is projected to grow 10% in 2026, driven by rapid adoption of Artificial Intelligence (AI) platforms, which will grow over 70% by the end of the year.

Software emerges as the largest technology group in 2026, absorbing more than 33% of global ICT spending. This surge is primarily fueled by robust investments in enterprise resource management (ERM) applications, security software, and production and operations applications, which together will account for over one-third of total global software expenditure, according to IDC. These categories reflect enterprises’ ongoing priorities around operational efficiency and cybersecurity resilience. Hardware is set to be the fastest growing technology group, with a projected year-over-year growth rate of 15% in 2026. This expansion is driven by significant momentum in non-x86 servers, the proliferation of wearables, and increased adoption of Infrastructure-as-a-Service (IaaS). This underscores the rising demand for specialized compute infrastructure, edge devices, and scalable cloud resources to support next-generation workloads and hybrid environments.

Top industries include Software and Information Services, Banking, Retail, representing more than $1 trillion combined.

Fastest-growing sectors include Software and Information Services, Media and Entertainment, and Retail, according to the report.

The report anticipates a Five-year CAGR greater than10%.

Major global events in 2025, including escalating trade tariffs, security threats, and the US government shutdowns, prompted organizations to accelerate investments in AI-driven optimization and security. Geopolitical tensions and supply chain disruptions accelerated digital transformation and security spending. The United States is expected to lead global ICT spending in 2026, reaching $2 trillion, driven by its large enterprise base and rapid adoption of cloud and AI technologies. Western Europe is predicted to be the second largest market at $908 billion, supported by regulatory-driven modernization and accelerated AI adoption in sectors like banking and manufacturing. China will follow with $355 billion, fueled by government-led digital infrastructure and expansion of smart manufacturing and AI platforms, according to the research.

“We are entering a new phase of the AI-everywhere journey: the era of expectations and reckoning,” said Andrea Siviero, senior director at IDC. “The excitement of experimentation is giving way to a sharper focus on accountability, value creation, and productivity impact. In 2026, enterprises will demand that AI and digital investments demonstrably improve processes, accelerate decision making, and ultimately drive business growth across the organization.”

“As companies continue to invest in automation, industries such as aerospace and defense, insurance, and software and information services are poised to accelerate spending in AI platforms the fastest,” said Andrea Minonne, research manager at IDC. “In aerospace and defense, escalating geopolitical cross-regional tensions and heightened security concerns are prompting governments to expand defense budgets.”

Channel Impact^®
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