Global spending on information and communications technology (ICT) is projected to reach $4 trillion in 2026, with continued double-digit growth expected to push the market past $6 trillion by 2029, according to the latest IDC Worldwide ICT Spending Guide.
IDC estimates that, excluding consumer spending, the ICT market will expand by 10% in 2026 as enterprises accelerate adoption of artificial intelligence (AI) platforms.
Investments in AI are expected to grow by more than 70% during the year, reflecting a shift from experimentation to operational deployment across industries.
Software will account for the largest share of ICT expenditures in 2026, absorbing more than one-third of total spending. Growth is being driven primarily by enterprise resource management applications, security software, and production and operations systems, as organizations prioritize efficiency gains and cybersecurity resilience.
Hardware, meanwhile, is forecast to be the fastest-growing segment, with a projected 15% year-on-year increase. IDC attributed this to rising demand for non-x86 servers, wearable devices, and Infrastructure-as-a-Service (IaaS) as companies build out specialized computing environments to support AI workloads, edge processing, and hybrid cloud deployments.
By industry, software and information services, banking, and retail are expected to account for the largest share of ICT spending in 2026, collectively surpassing $1 trillion.
Additional sectors — including government, telecommunications, media and entertainment, healthcare, and high-tech manufacturing — will together represent more than one-fifth of global expenditures.
Regionally, the United States is projected to remain the largest ICT market at about $2 trillion in 2026, followed by Western Europe at $908 billion and China at $355 billion.
IDC said growth across these regions is being shaped by cloud adoption, regulatory modernization, and government-backed digital infrastructure programs.
IDC linked the acceleration in ICT investment to geopolitical tensions, supply-chain disruptions, and security concerns that intensified in 2025, prompting organizations to prioritize digital transformation, automation, and cyber-defense capabilities.
“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.”
IDC also noted that industries such as aerospace and defense, insurance, and software and information services are expected to ramp up AI platform spending at the fastest pace, driven by rising security requirements, claims-processing demands, and the need to automate complex workflows.
Other sectors — including automotive, consumer goods, and high-tech manufacturing — are increasing investments in nearshoring, factory automation, and advanced analytics to mitigate trade pressures, address talent shortages, and stabilize supply chains in a volatile global environment.
