IDC has forecast that IT spending will increase by 10% in 2026 – slower than 2025 but still representing one of the strongest years for the industry since the 1990s. According to the analyst, IT had one of its best years ever in 2025, growing by 14% worldwide.
► Healthy spend in 2025 driven by AI, cloud, and PC refresh
► Even in a moderate recession, IT spending is set to continue
► Service provider spending to grow 20%
► Heightened expectations for DX spending
Massive AI infrastructure investment wave drove what IDC described as a ‘supercycle of tech spending’ with the total for 2025 expected to be $4.25 trillion. Total ICT spending, which includes telecom and business services, as well as IT, was expected to be almost $7 trillion.
In its monthly Worldwide Black Book forecast at the end of November 2025, IDC increased its annual IT spending forecast for a seventh consecutive month, reflecting the continued aggressive investment by service providers in AI infrastructure. Service providers spent more than was expected on servers and network equipment and in 2026 IDC expects another 20% increase in service provider IT spending.
The increases have also been driven by strong enterprise software spending, as organisations continued with digital transformation and cloud migration projects.
Looking ahead to 2026, IDC said that there are ‘headwinds and downside risks’, including an expected shortage of memory, which may drive up PC prices. But demand had been resilient in 2025, despite uncertainty around tariffs and a sluggish global economy, and its baseline forecast is for a stable economy, supported by ongoing AI investment. Even in a moderate recession, the firm said, most IT spending would continue.
