Global business technology spending is expected to reach a staggering £3.93 trillion in 2025, according to recent forecasts. That’s a 5.6% increase compared to the previous year marking a significant shift in how companies are prioritising their digital infrastructure.
So, what is the tech spending forecast pointing to in practical terms? In short: AI, cyber security, cloud services, and digital transformation are leading the charge. Whether you’re a global enterprise or a growing local business, this rise in investment signals a clear message technology is no longer a support function; it’s a critical business driver.
Let’s explore where this money is going, what it means for your business, and how you can stay ahead.
What is the tech spending forecast and Why Are Businesses Spending More on Tech in 2025?
With innovation moving at breakneck speed, standing still simply isn’t an option. The forecasted growth is being driven by several key factors:
1. Cyber Security Remains a Top Priority
In the wake of escalating cyber threats, investment in advanced security tools is no longer optional. From ransomware to phishing, businesses are bolstering their defences with zero-trust frameworks, endpoint protection, and staff training.
2. Cloud Computing and Hybrid Work
The post-pandemic world has reshaped how teams operate. Cloud infrastructure continues to grow, enabling remote collaboration, scalable operations, and business continuity.
3. Artificial Intelligence and Automation
AI is transforming everything from customer service to data analysis. Businesses are investing in automation tools and machine learning to improve efficiency and gain a competitive edge.
4. Digital Transformation Strategies
Legacy systems are being replaced by integrated platforms that offer real-time analytics, improved workflows, and better user experiences.
What is the IT Spending Trend in 2025?
Understanding what is the IT spending trend in 2025 offers a more granular look at how budgets are being distributed. Here are the most prominent developments:
- Software spending is set to grow by over 12%, especially in cloud-based solutions and AI-powered platforms.
- IT services are projected to rise by 8.7%, as businesses rely more heavily on managed service providers and consultancy firms.
- Hardware investment is increasing modestly, largely driven by upgrades in network infrastructure and endpoint devices.
- Cyber security spending is expected to surpass £180 billion, reflecting the growing risk landscape and regulatory pressures.
For small and medium-sized businesses, this trend represents both a challenge and an opportunity. While the cost of staying up to date is increasing, the risk of falling behind, or worse, being exposed to cyber threats is far greater.
How Can You Prepare for These Shifts?
You don’t need to match enterprise-level budgets to stay relevant but you do need a clear strategy. Here’s how to make sure your business is aligned with the tech spending forecast:
Audit Your Current Infrastructure
Identify where your current systems fall short. Is your hardware outdated? Are your employees using unsupported software? A full review helps clarify what needs immediate attention.
Prioritise Security Investments
Cyber threats don’t discriminate by business size. Invest in robust, multi-layered security this includes firewalls, threat monitoring, and staff awareness training.
Consider Cloud Migration
Cloud services aren’t just for large enterprises. They offer flexibility, scalability, and cost efficiency especially useful for growing businesses with remote teams.
Partner with Trusted IT Providers
Whether it’s for managed services or one-off upgrades, working with a knowledgeable provider ensures you’re investing in the right areas.
Final Thought: Standing Still Isn’t an Option
If your current tech setup feels like it’s holding you back, or worse, exposing you to unnecessary risk this is the time to act. The 2025 spending forecast isn’t just for the big players; it’s a roadmap for any business looking to stay secure, agile, and future-ready.
What is the tech spending forecast teaching us? That smart investment today could be the difference between growth and stagnation tomorrow.
If you’d like help reviewing your current IT strategy or identifying where best to invest, our team is here to support you.
