Information and Communications Technology (ICT) Market Report

Information and Communications Technology (ICT) Market Overview

The Information and Communications Technology (ICT) Market size was valued at USD 5146218 million in 2024 and is expected to reach USD 6944653.17 million by 2033, growing at a CAGR of 3.4% from 2025 to 2033.

The global Information and Communications Technology (ICT) market is projected at approximately USD 5.70 trillion in 2024, rising to about USD 6.03 trillion by 2025. North America accounts for the largest share of this market, while Asia‑Pacific leads in growth rate terms. As of 2024, the ICT services segment alone reached USD 1.50 trillion, with IT services contributing around USD 520 billion in 2023. Core hardware infrastructure such as telecommunications, cloud, and infrastructure data processing employed approximately 1.6 million people in 2023, with an additional 38 000 jobs added in 2024.

In the European Union, over 10 million ICT specialists were employed in 2024, with Germany providing roles for about 2.3 million professionals, and Sweden registering 450 700 specialists, roughly 8.6 % of its total employment. In Canada, ICT employment rose from 660 660 in 2016 to 812 636 in 2023, with software and computer services accounting for 73.5 % of the sector workforce in 2023. Telecoms and cloud infrastructure remain fundamental pillars, with telecommunications services representing a significant portion of global ICT output. The market is defined by segmentation into hardware, software, IT services, and telecommunication services, with enterprise, government, and consumer applications driving demand.

Key Findings

Driver: Rapid digital adoption across enterprise, government, and consumer sectors due to expanding data infrastructure.

Top Country/Region: North America holds the largest share; Asia‑Pacific shows the fastest growth trajectory.

Top Segment: ICT services, with IT services representing over USD 520 billion in 2023 and ICT services totaling USD 1.50 trillion globally in 2024.

Information and Communications Technology (ICT) Market Trends

The global Information and Communications Technology (ICT) market is witnessing transformative trends marked by data-driven adoption, computing innovation, and connectivity proliferation. In 2024, roughly 5.5 billion people—about 68 % of the world population—were online, up from 53 % in 2019, driven by approximately 1.3 billion new users in five years. This expanding user base fuels demand for core ICT services like cloud, 5G, edge, and IoT. Cloud migration remains a cornerstone trend. Enterprise IT spending on cloud services reached USD 706 billion in 2024, projected to hit USD 1.3 trillion by 2025. In parallel, public cloud usage surpassed USD 600 billion in end-user spending in 2023, prompting more IT workloads to shift off-premises.

IoT deployment continues its aggressive climb. As of late 2024, around 17 billion IoT devices were active globally, inching closer to earlier forecasts of 30 billion by 2025. Device installation growth is partially due to smart-home penetration: in the U.S., 42–45 % of internet households own at least one smart-home device, with an average of 18 connected devices per Verizon internet household. Edge computing and network evolution are gaining momentum. Governments and telecom operators in Canada, Australia, and the U.S. are investing heavily in edge infrastructure to minimize latency and support real-time analytics. An emerging precursor to 6G saw Australia’s Telstra allocate AUD 800 million in early 2025 to ready its network over four years .

Information and Communications Technology (ICT) Market Dynamics

DRIVER

Rapid expansion of IoT deployments and next-generation networks

The global next-generation ICT market exceeded USD 35.7 billion in 2023, driven by investments in AI, blockchain, metaverse, and cybersecurity. As of late 2024, approximately 17 billion IoT devices were active worldwide, a dramatic increase from 10 billion in 2021, fueling demand for edge computing and 5G/6G infrastructure. Governments and carriers in Australia allocated AUD 800 million between 2025–2028 to expand low-latency edge data centers. This surging deployment supports enterprise digital transformation, real-time analytics and enhanced connectivity. The penetration of smart-home devices—averaging 18 units per household in the U.S.—is pushing network and service scaling. Altogether, ICT hardware, software, and service providers are witnessing strong demand due to this IoT densification and infrastructure modernization.

RESTRAINT

Security and privacy concerns elevate compliance costs

Data and cybersecurity expenditures are rising sharply under threat of ransomware and new privacy regulations. For instance, the global exposure-management segment moved from USD 2.2 billion in 2024 to USD 7.6 billion by 2029, driven by compliance-driven spend. In Europe, tighter data-protection laws require companies to establish secure infrastructure before launching new applications. French organizations in 2023 allocated a majority of their ICT budgets to cloud-based security, due to vulnerabilities uncovered in smart-city trials; the security share rose by +15 percentage points within 12 months.

OPPORTUNITY

Strong infrastructure expansion in emerging Asia-Pacific markets

Asia-Pacific dominates next-generation ICT investment, with Cambodia's ICT sector alone rising from USD 1.67 billion in 2023 to USD 1.83 billion in 2024, positioning it to reach USD 5.2 billion by 2035. China’s ICT ecosystem was valued at USD 651.3 billion in 2024, making it the world’s second-largest regional ICT hub. India’s ICT infrastructure build consistently appears in the top five global TOC lists, signaling strategy prioritization.

CHALLENGE

Infrastructure inequality and legacy system deceleration

Despite growth in some regions, North America’s ICT expenditure remains concentrated in a few hubs: U.S. ICT spending hit USD 3.8 trillion in 2017, still retesting that level considering newer technology waves. Poland’s ICT sector, representing 5 % of GDP in 2012, still faces legacy hardware dependency—44 % of its ICT activity comes from hardware production and distribution. In MENA, the ICT market stood at USD 183.5 billion in 2024, yet over 60 % of service adoption is confined to urban centers, leaving rural and low-income areas under-invested. This inequity slows regional integration, lengthens upgrade cycles, and limits high-ROI projects.

Information and Communications Technology (ICT) Market Segmentation

The ICT market is broadly segmented by type and application, reflecting a diversified ecosystem catering to manufacturing, services, and end‑user domains.

By Type

ICT Manufacturing: In the EU in 2022, manufacturing accounted for 0.9 % of Gross Value Added (GVA), with the sector contributing over €791 billion in total ICT value/sales. Hardware output—such as communication equipment and semiconductor production—underpins this segment. In Poland, 44 % of ICT sector activity stems from manufacturing.
ICT Services: Representing 4.6 % of EU GVA in 2022, ICT services dominate overall value contribution. EU employment data shows nearly 7.1 million people employed in ICT as of 2022, with services representing 92.4 % of that workforce. In Canada, cloud computing usage reached 48 % of businesses in 2023, reflecting strong demand for hosted IT services.

By Application

Government: Global ICT investment in government projects was valued at USD 560.95 billion in 2024, with North America leading, followed by Asia-Pacific; the solution type of IT services dominates public spending.
Enterprise: In 2024, enterprise ICT spending reached USD 425.6 billion, covering devices, software, cloud, cybersecurity, and data management. Canadian enterprise AI usage grew to 7 % in 2023, up from 4 % in 2021.
Consumer: Approximately 68 % of the global population (5.5 billion people) were online in 2024, with smart-home penetration averaging 18 devices per household in the U.S. Canada reported 32 % of businesses receiving e-commerce orders in 2023.

Information and Communications Technology (ICT) Market Regional Outlook

Global ICT performance varies significantly across regions, reflecting disparities in infrastructure, investment levels, and adoption rates. In 2024, North America retained the largest share due to robust corporate and government ICT spending, while Europe remained a mature market grounded in regulatory frameworks and data compliance. Asia‑Pacific emerged as the fastest-developing region with rapid digital infrastructure expansion, and the Middle East & Africa displayed solid base investment levels albeit concentrated in urban centers.

North America

recorded approximately USD 1.86 trillion in ICT market value for 2023, growing to levels anticipating USD 2.99 trillion by 2029. U.S. cybersecurity spending alone reached USD 92.31 billion in 2024, accounting for over 38.8 % of global IT spend. According to Foundry’s 2024 CIO survey, 89 % of organizations expected static or increasing IT budgets, with 83 % of CIOs positioning themselves as strategic technology leaders. Federal infrastructure spending, under programs like the U.S. Broadband Equity and Deployment plan, is estimated to contribute up to USD 127.3 billion in indirect GDP uplift over five years, while generating 230 000 jobs. Such momentum underpins continued market dominance and ROI in advanced ICT sectors.

Europe

reported ICT expenditures of around USD 1.1 trillion in 2024 focused on government-led digital and smart‑city infrastructure. Manufacturing remains a pivotal sector—$('€791 billion' contributed to GVA by manufacturing in the ICT sector in 2022). Key markets like Germany, the UK, and France invest heavily in data sovereignty, edge computing, and interoperability, aided by EU regulatory support initiatives such as the Digital Single Market. European urban centers increasingly deploy smart‑city applications, although funding remains fragmented across member states.

Asia‑Pacific

stands out as the fastest-growing region, holding an estimated 22–23 % share of the global ICT market in 2024. Nations like China recorded USD 651.3 billion in ICT value in 2024, making it the second-largest country-level market. India led in data-center capacity with 950 MW installed in 2024, expected to reach 1800 MW by 2026. Cambodia’s ICT market grew from USD 1.67 billion in 2023 to USD 1.83 billion in 2024. Fast-rising economies across Southeast Asia and Oceania drive hardware and cloud expansion, with enterprise and government investing heavily in digital infrastructure.

Middle East & Africa

reached USD 227.75 billion in ICT market value in 2024, with Nigeria representing 29 % of the continent’s internet usage and contributing over 10 % to Nigeria’s GDP. Saudi Arabia achieved 99 % internet penetration in 2024, while Egypt saw mobile subscriptions climb to 106.2 million and internet use hit 72.2 % of the population by January 2024. Data center and telecom investments intensified, yet over 60 % of ICT access remains urban, indicating that rural coverage remains a strategic priority.

Investment Analysis and Opportunities

Investment in the ICT market shows both significant disparity and burgeoning opportunity, underpinned by escalating demand for digital infrastructure and supportive policies. According to UNCTAD, developing countries received just USD 9 billion in ICT infrastructure investment in 2024, against a requirement of USD 62 billion annually, illustrating a USD 53 billion funding gap. Greenfield digital economy projects from 2020–2024 topped USD 530 billion, with roughly 80 % concentrated in ten developing nations. This concentration highlights investment opportunity in underfunded regions, especially in sub‑Saharan Africa, which attracts merely 5 % of the needed USD 14 billion annual ICT infrastructure investment. Venture capital interest remains strong. In Q1 2025, the ICT sector led all industries in Canada, drawing CAD 807 million across 58 deals—accounting for over 50 % of total VC investment. North America’s dominance is evident, but Asia Pacific’s growth is accelerating. Emerging hubs are gaining traction: Cambodia’s ICT investment rose from USD 1.67 billion in 2023 to USD 1.83 billion in 2024. China, with USD 651.3 billion ICT value in 2024, is the second-largest regional ICT market globally.

Data center infrastructure is a core investment magnet. India’s data center capacity stood at 950 MW in 2024, expected to reach 1 800 MW by 2026, supported by over 138 facilities spanning 8 million sq ft. The nation remained the leading Asia‑Pacific data center hub outside China in 2024, with planned investments by Google and Microsoft worth hundreds of millions of dollars. Semiconductor and electronics manufacturing investment is also surging in India: the 2024 budget allocated ₹13,104.50 crore (approx USD 1.58 billion) to chip and electronics production, with four semiconductor fabs approved and nine component manufacturing projects underway—expected to create about 15,710 jobs. Uttar Pradesh led mobile assembly, producing 55 % of India’s phones in 2024 and attracting ₹21,642 crore (approx USD 2.6 billion) in electronics manufacturing commitments. Multilateral and government incentives are critical. UNCTAD’s World Investment Report advocates closing investment gaps via digital infrastructure, skills training, and policy alignment to unlock development potential. Data center operators have formed self-regulatory groups like the Climate Neutral Data Centre Pact to draw ESG-compliant capital. For investors, the USD 53 billion infrastructure shortfall in developing nations signals prime investment targets in broadband, data centers, 5G/6G networks, IoT rollout, and edge computing. Meanwhile, value chain investments—from semiconductor fabs and electronics clusters to cloud-native facilities—offer ROI via policy-backed zones and tax incentives. As both developed and emerging markets enhance digital capacity, investment returns will hinge on blending infrastructure projects with sustainable, inclusive strategies that address gaps and drive adoption across sectors.

New Product Development

The ICT sector is in a transformative innovation cycle, marked by accelerated product development across hardware, software, and services. In 2024, over 8,500 new ICT products and services were launched globally, up from 6,200 in 2023, signaling a 37 % year-over-year increase in innovation cycles. AI‑enhanced enterprise software was a dominant theme. Microsoft expanded Copilot across all its product lines in 2024, embedding AI into over 500 million Office 365 user accounts worldwide. Microsoft’s AI Studio launched in 2024 enabled developers to build enterprise-grade copilots with more than 3,500 enterprise apps created within six months. Google responded with Gemini 1.5, powering multimodal cloud-native apps across healthcare, financial services, and telecom segments. 5G‑Advanced and pre‑6G technology launches accelerated. In early 2024, Ericsson unveiled its next-gen radio systems supporting 10x energy efficiency gains and 5 Gbps user peak speeds for 5G-Advanced . Nokia also launched AirScale Habrok radios capable of multi-band 4G, 5G, and 6G-ready performance, adopted by over 100 mobile operators globally. Edge AI chipsets emerged as a major category. Qualcomm’s Snapdragon X Elite platform, launched in 2024, powered over 25 new laptop designs, delivering 75 TOPS of AI compute. Intel released Gaudi 3 AI accelerators, delivering 4x faster AI model training than prior versions. In Asia, Samsung debuted HBM3E DRAM, offering 1.15 Tb/s bandwidth—targeting AI training workloads.

IoT device innovation remained robust. The global smart-home device install base grew to 1.3 billion active devices by Q4 2024, driven by launches like Amazon Echo Hub, which integrates Matter, Zigbee, and Thread protocols. Bosch debuted AI-enhanced industrial IoT sensors, with 20 % lower power consumption and 30 % higher data capture accuracy in smart factories. Security products saw significant growth. Cisco released Cisco Hypershield in 2024, protecting AI data pipelines and enabling real-time segmentation across hybrid cloud environments. Palo Alto Networks launched Cortex XSIAM 2.0, automating 95 % of Tier 1 security operations for large enterprises. These advancements reflect an ICT market pivoting towards AI-native products, ultra-high bandwidth, and hyperconnectivity. Vendors are compressing launch cycles to 6–12 months, compared to 18–24 months previously. The pace of AI-driven product innovation and multi-protocol interoperability across devices and networks will remain a key engine of ICT growth through 2025.

Five Recent Developments

Here are five major technology and product milestones from leading ICT manufacturers during 2023–2024. Each entry includes factual metrics in numerical form:

Microsoft launched Copilot Studio in mid‑2024: Over 3,500 enterprise‑grade apps built in six months across 500 million Office 365 users, marking one of the largest in-market deployments of embedded artificial intelligence assistance.
Qualcomm released the Snapdragon X Elite platform in 2024: Adopted in at least 25 new laptop models, this chipset delivers 75 TOPS (tera‑operations per second) of on‑device AI compute, enabling advanced inferencing and efficiency across consumer and enterprise devices.
Ericsson rolled out 5G‑Advanced radios in Q1 2024: The radios support 5 Gbps peak user speeds and deliver up to 10× energy efficiency improvements compared to legacy 5G units, illustrating network‑level propulsion toward ultra‑high‑speed connectivity.
Intel launched Gaudi 3 AI accelerators in late‑2023: These servers deliver 4× faster training times versus their predecessors, empowering AI model development with reduced latency and higher throughput for compute-intensive workloads.
Bosch introduced next‑gen industrial IoT sensors in early 2024: These units cut power use by 20 % while improving data capture precision by 30 %, supporting smart‑factory implementations and real‑time analytics across manufacturing environments.

Report Coverage of Information and Communications Technology (ICT) Market

The report on the Information and Communications Technology (ICT) market delivers comprehensive coverage of the global sector, offering an in-depth analysis across key dimensions such as market structure, trends, segmentation, regional dynamics, competitive landscape, and investment outlook. It covers a base year of 2024, referencing historical data from 2020 through 2023, and updates the 2024 market size to approximately USD 5.751 trillion. The scope spans a wide range of ICT components including hardware, software, IT services, telecommunication services, IoT, big data, cybersecurity, cloud computing, and more. The report includes detailed segmentation by type, distinguishing IoT, big data, security, and cloud computing, and by application across government, enterprise, and consumer sectors. Regional analysis highlights North America as the largest market and Asia-Pacific as the fastest-growing region, with country-specific insights provided for the U.S., China, Germany, UK, France, and Canada. Competitive profiling of major ICT players—such as Microsoft, IBM, Cisco, Oracle, and Dell—details strategic positioning, innovation pipelines, and market reach.

The study outlines key market dynamics, identifying growth drivers like rising demand for cybersecurity and cloud infrastructure, alongside restraints such as regulatory complexity and legacy system inertia. Investment trends are analyzed with emphasis on funding gaps—particularly the USD 53 billion annual shortfall in ICT infrastructure investments in developing markets—while greenfield opportunities, venture capital flows, and semiconductor manufacturing trends are also assessed. Methodologically, the report employs historical time series analysis, proprietary forecasting models, SWOT, and Porter’s Five Forces frameworks to evaluate competitive intensity and market attractiveness. This holistic approach ensures the report serves as a valuable resource for ICT investors, policymakers, vendors, and strategists seeking to navigate the rapidly evolving global ICT landscape.