The global tech market will grow by 5.3% in 2015, according to Forrester's annual forecast. This market will hit US $2.337 trillion in 2015 and US $2.483 trillion in 2016.
As the major driver of global tech market growth, the US will set the pace for the rest of the world with rates of 6.3% in 2015 and 6.1% in 2016.
The global economic scene will improve leading to an overall improvement in tech market growth across the world.
China's economy should expand by around 7% in 2015 and 2016. India will grow by more than 6% and Indonesia's by more than 5%.
South Korea's economy will reach 4.1% in 2016 and Australia will continue to expand by 2.5% or more during this period.
Software rules the roost
Software will represent US $677 billion of total tech budget spending in 2016 and the projected growth will be driven by technologies that focus on the end customer.
Computer equipment will represent US $412 billion of spending in 2016, and will only grow 5.0% from 2015. Desktop and collaboration apps will grow by 9% in 2015 and 5% in 2016 as low-cost SaaS apps will impact the sales of on-premises applications like Microsoft Office.
A steady, moderate growth tech markets in 2015 and better growth in 2016 will allow most CIOs to increase their tech spending in these two years.
Operating system revenues will see little or no growth in 2015 and 2016 because of slow growth in computer equipment.
In order to gain a competitive edge, Forrester advises CIOs to focus on investing in business technology as they help organizations to win, serve, and retain customers.
CIOs should also choose their cloud apps carefully, and build up their analytics and big data capabilities.
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