India to Lead Global Tech Growth with 9.6% CAGR : Report
Forrester Predicts India’s Enterprise IT Market to Expand at the Highest Rate Amid AI and Cloud Boom
India is set to become the world’s fastest-growing technology market, with enterprise IT spending projected to grow at a compound annual growth rate (CAGR) of 9.6% between 2024 and 2029, the highest across any region globally, according to Forrester’s latest Global Tech Market Forecast, 2024-2029. India remains the only country where double-digit growth is expected in certain tech sectors, solidifying its position as the leading force in global enterprise IT expansion.
The report highlights that while overall global tech spending is projected to grow at an average of 5.6% annually, India is outpacing all other markets due to strong AI adoption, rapid cloud migration, and a government-backed push toward digital modernization. “India’s technology market is witnessing unprecedented growth, driven by enterprise AI adoption, cloud transformation, and a thriving digital economy,” said the report.
AI and Cloud Investments Power India’s Unmatched Growth
With AI adoption accelerating at an unparalleled pace, Indian enterprises are increasingly deploying generative AI, automation, and advanced analytics to enhance efficiency and competitiveness. The report notes that India’s AI infrastructure spending is set to grow significantly, fueled by private-sector innovation and government-led initiatives in digital governance, smart cities, and AI policy frameworks.
Cloud computing is another dominant driver, as organizations transition from legacy IT systems to highly scalable, cloud-based platforms. The shift from capital expenditures (capex) to operating expenditures (opex) is becoming a mainstream strategy, particularly among mid-sized and large enterprises looking for cost efficiency and agility. “Enterprises across India are scaling up their cloud investments, with multi-cloud and hybrid cloud strategies becoming central to IT modernization efforts,” said the report.
India’s Digital Economy Expands Amid Global Economic Uncertainty
Despite global economic pressures, India’s digital economy continues to thrive, with enterprise IT budgets expanding across industries such as financial services, retail, healthcare, and manufacturing. A strong focus on cybersecurity investments is emerging, driven by the increasing frequency of cyber threats and data privacy regulations. The report highlights that India’s regulatory environment, including data localization policies and AI governance frameworks, is playing a crucial role in shaping enterprise technology adoption.
India’s IT services sector is also benefiting from its rapid growth trajectory. Forrester’s analysis suggests that India’s position as the world’s leading IT outsourcing hub is strengthening, with heightened demand for AI-driven automation, cybersecurity consulting, and cloud-native development services.
India Outpaces APAC and Global Peers in Tech Growth
India’s dominance in the global tech landscape sets it apart from other regions. While North America and Europe are expected to experience steady growth, their tech market expansion remains below 6%. Even within Asia-Pacific, where the overall tech market is projected to grow by 5.6% annually, India stands out with nearly double that rate.
China continues to invest in semiconductors and industrial AI, but its economic slowdown and trade tensions are creating headwinds for enterprise IT spending. Japan and South Korea remain strong players in AI and robotics but are experiencing slower overall tech market growth. In contrast, India’s expanding digital infrastructure, booming startup ecosystem, and enterprise IT investments make it the top-performing region in global technology expansion.
For enterprises looking to capitalize on India’s record-breaking tech growth, the report suggests focusing on AI-driven automation, cybersecurity resilience, and cloud-first strategies. As India cements its position as the fastest-growing technology market in the world, businesses will need to adapt quickly to evolving technology trends to maximize opportunities in this high-growth landscape.
