21 Information Technology Trends to Watch Out for in 2023

Looking back at 2022, we can see the tech world had an exciting and tumultuous year. For one, the evolution of artificial intelligence and machine learning reached new heights. This, in turn, aided the development of self-learning algorithms, autonomous cars, and virtual assistants. Blockchain expanded way beyond the financial industry and created a wealth of future opportunities. It is already setting the stage for other information technology trends to emerge.

The past years have not been all fun and games, as some events raised valid questions about the future of certain innovations. Gene-edited babies faced a severe public backlash, blockchain suffered a sudden crash, and the Cambridge Analytica data scandal even brought Facebook CEO Mark Zuckerberg to stand.

Information Technology Trends

• The global information technology market expanded from $8179.48 billion in 2022 to $8852.41 billion in 2023.
• The tech market in the United States represents 35% of the total global market.
• By 2024, 5G networks are expected to cover 40% of the global population.
• The global IT industry spending  $4.6 trillion, an increase of 5.1% from 2022.
• 44% of respondents said they expect stable results on par with previous years.
• As of 2022, the US accounts for 36% of the market share, up from 34.7% in 2021.
• 95% of business leaders expect their revenues to increase or remain the same in 2022.

Despite the setbacks, the tech field is confidently moving forward steadily.

So what should we expect from 2023 and beyond?

What do the cold, hard facts and numbers have to say on the matter?

Let's have a look...

1. The annual growth rate (CAGR) of 8.2%.

(Source: The Business Research Company)

It enabled the global information technology market to increase from $8179.48 billion in 2022 to $8852.41 billion in 2023.

However, in the short term, the Russia-Ukraine war has disrupted global economic recovery from the COVID-19 pandemic.

The war has resulted in economic sanctions on multiple countries, a surge in commodity prices, and disruptions in supply chains, leading to inflation across various goods and services and affecting multiple markets worldwide.

Nonetheless, the information technology market is expected to grow at a CAGR of 7.9% and reach $11995.97 billion in 2027.

2. North America, which includes the United States and Canada, has the largest share of the tech industry market at 35%.

(Source: Zippia)

Telecom services, devices and infrastructure, as well as IT and business services, receive significant portions of IT budgets globally. However, the allocation of spending varies among individual countries, influenced by various factors.

Tech companies are benefiting from the ongoing digital transformation, while other companies are focusing their resources on internal operations to address the challenges faced in 2020.

North America controls 35% of the market share of the tech industry, Asia 31%, and Europe 22%. Although Africa and Latin America have made substantial progress in recent years, developed markets have also continued to expand. 

3. By 2024, 5G networks are expected to cover 40% of the global population.

(Source: Ericsson)

According to researchers, the amount of mobile data used per month will surpass 21GB by 2024, almost quadrupling the 2018 consumption. Ericsson estimates that 5G networks will carry a quarter of the world's mobile data traffic, with North America and North East Asia expected to lead the 5G deployment, followed by Western Europe. 

4. Technology trends for 2023 will continue to please both clients and investors—the total global IT industry spending  $4.6 trillion, an increase of 5.1% from 2022.

(Source: Gartner)

In 2023, the software and IT services sectors are expected to experience growth rates of 9.3% and 5.5%, respectively. On the other hand, the devices segment is predicted to decrease by 5.1% due to both consumers and businesses delaying the replacement of their devices.

Worldwide IT Spending Forecast (Millions of U.S. Dollars)

5. The US accounts for 36% of the 2022 global ICT market share.

(Source: Statista)

Let’s compare some data with the previous year:

The US was still in the lead but with 34.7%. The EU ranked second with 15%, while China followed with 11.3%.

Industry experts have forecasted that these numbers will continue to increase in 2022. By Q4, the ICT (Information and Communication Technology) market would reach $5.5 trillion; by 2023, it will grow to almost $6 trillion.

As of 2022, the US accounts for 36% of the market share, while China and the EU hold 11.6% and 11.3%, respectively.

6. Fastest growing tech markets don't always need a rich economic environment to bloom.

(Source: IDC)

Even though "usual suspects" like Germany and the UK are still high on the list, we must note the progress of smaller-scale economies like Argentina and Chile. That fact is partly due to the overall boom of new technologies in the Latin American tech market. Tech adoption is inconsistent across the globe—China actively invests in robotics, Germany is doing wonders with 3D printing innovations, and India is spending heaps on mobility services.

7. North America and Asia are leading the pack when it comes to IT technology distribution. Both continents account for 33% of tech worldwide.

(Source: Statista)

While the tech industry grows by the year, users across the globe do not enjoy the same access to innovations. African countries are still way behind, enjoying a mere 5% global distribution of tech industry trends.

Progress within Africa doesn't spread evenly as well. A notable example of that divide is Nigeria. The country's demographic boom and continuous drop in smartphone prices are expected to help Nigeria host over 50% of the mobile technology users on the continent by 2025.

8. Company size matters! Big enterprises are 10 times more likely to adopt an emerging tech trend, compared to smaller-scale companies.

(Source: Spiceworks)

Bigger companies are undoubtedly holding most the power (and money) when it comes to getting the most from the latest information technology trends. That influence spans across all innovations. Take blockchain for example. Global blockchain adoption from small and mid-sized companies gravitates around 9%, while enterprises with more than 5000 employees are much more receptive with 25%.

9. Speaking of top dogs and their gadgets, 90% of Fortune 500 companies have already moved their systems to the Microsoft Cloud.

(Source: Fortune)

This process has established Microsoft as one of the cloud's top players, something that seemed ludicrous just a few years back. An increasing number of companies are attempting to embrace the recent information technology trends in their early stages, and they often pivot from their traditional offerings.

10. 39% of companies report they’ll be improving their budget for 2022.

(Source: CompTIA)

Additionally, 44% of businesses plan to spare the same budget as in previous years. The main areas of interest are innovative, cutting-edge technology and collaboration tools.

Technology has now become synonymous with innovation. However, the approach here is much more strategic. It’s not just about developing new technologies but also factoring in broader solutions that benefit the company’s operation (including enabling revolutionary processes and increasing productivity) and people’s well-being, as the right tools are fundamental to the workforce of the future.

11. AI, Big Data Analytics, and Cloud Computing will continue to grow in 2022.

(Source: Inc Africa)

IT trends for 2022 indicate that the global predictive analytics market has continued to grow at a steady 24.5% rate. By 2026, it is expected to reach $22.1 billion!

This also extends to cloud computing. Gartner predicts worldwide spending will increase from $314 billion (2020) to $482 billion (end-2022). Not a surprise since tons of industries' computing workloads currently run on the cloud.

12. People and companies will continue to spend a lot on anything fresh the market has to offer. Emerging tech like AR/VR headsets, IoT solutions, robots, and drones will be raking about 23% of the total spending in the industry.

(Source: IDC)

Platform investments will maintain the lead in terms of IT expenditure. A whopping 70% of all spending will be aimed toward taking cloud, mobile, social, and big data analytics to the next level.

13. Make way for artificial intelligence! AI investments rise by 50.4% in 2022.

(Source: Yahoo Finance)

Global IT trends for 2022 are perfectly clear! The AI services market is growing at an exponential rate.

It’s expected to reach $12.39 billion in 2022. Just to compare—the 2021 figure was $8.24 billion. That accounts for over 50% annual growth rate! What’s more, the market is predicted to reach $58.93 billion by 2026.

Since most companies are resuming operations and embracing AI services, the industry will continue to experience rapid growth. Thus, this becomes a great time to invest in the AI service industry.

14. 30% of big enterprises will use conversational speech tech for customer engagement by 2022.

(Source: IDC)

We already got acquainted with Siri and formed a bond with Alexa. The latest technology trends in information technology bring exciting changes in the way businesses build relationships with their customers. Chatbots and voice-operated tech will actively feature in the short-term plans of companies, while AI-enabled user interfaces and process automation will rule the game by 2025.

15. The majority of companies are optimistic about their 2022 revenues.

(Source: CompTIA)

58% of companies report expectations to either grow in revenue in 2022 or recoup losses from the peak-pandemic period (2020-2021) and return to 2019 earnings levels. Further 36% expect to remain stable and enjoy revenues this year equaling the previous one. Only 6% remain unsure and cannot engage in predictions for this year.

This means that none of the respondents has reported any pessimistic views toward their earnings in the current year. So revenue-wise, things are looking pretty solid for the IT industry!

16. Global tech employment plays a significant role in the industry's economic growth.

(Source: Statista)

Based on the latest technology trends, the IT industry is projected to ensure jobs for over 62 million people by the end of 2023. This is significant growth from the 55.3 million pre-covid estimations for 2020.

17. Why are companies looking to hire? The top reasons include company expansion (58%) and the need for a particular set of skills (52%).

(Source: CompTIA)

The labour market in the US is getting tighter, and 2022 is no different. Emerging tech will increase the need for experts in AI, IoT, AR/VR, and Blockchain, so the job market will inevitably undergo some transformations as a result. Industry giants will show no remorse when stealing the best talent to handle their leading technologies, resulting in over 43% of IT companies having to look for replacements.

18. Companies reveal that the most considerable portion of their 2022 IT budgets will be focused on digitalization.

(Source: Information Week)

As this is a subject of utmost importance and interest, here are some more specifics for you to know:

IT companies’ focus for the current year includes data utilization, digitalization, and the pursuit of talent and airtight security.

19. Where is technology headed? Most European companies plan to adopt AI security solutions in 2022.

(Source: Swzd)

Are you ready for these 2022 top technology trends? Listen to this:

55% of European companies fully intend to adopt AI-based security technologies. Also, 65% of businesses in Europe and 51% in North America plan to adopt zero-trust security solutions.

Several industries have also shown a keen desire to welcome emerging technologies. For example, 3D printing has a 62% adoption rate in the education industry and 45% in manufacturing.

20. Tech CEOs share their concerns about future technology inventions. 41% are most concerned with terrorism, and 36% feel uneasy about economic overregulation.

(Source: PwC)

The survey compared the most urgent concerns of Tech CEOs and directors from other industries. While terrorism remains a top issue for everyone, the research unveils that other problems are not distributed so evenly. For example, a big concern (35%) for tech directors is the protectionist policies some countries employ. Global CEOs, on the other hand, put this way back on the list, with only 29% worried about such a state of the economy.

21. Information technology trends will inevitably rely on the security tech market. Investments in security reached $75.5 billion in 2016, and $92.1 billion in 2018, and are expected to hit $133.7 in 2022.

(Source: Deloitte)

Digital evolution comes with a lot of perks, but we have also to consider the hidden dangers. Cyber attacks are one of the most pressing concerns for tech businesses and their clients alike. Tackling this growth inhibitor will include advanced solutions and heavy measures. On the bright side, companies look ready to pay for quality.

22. Cybersecurity strongly affects all trends in information technology.

(Source: PECB)

In the past, companies paused their adoption of AI initiatives due to online safety risks. However, new trends in technologies have proven that advancements in AI, threat intelligence, and machine learning can help recognize data patterns and curb security threats on time. This can help companies reduce incident response times and ensure compliance with security practices.

So what is the future of AI in cybersecurity?

The global market of AI in cybersecurity is estimated to grow at a steady 23.6% rate between 2021 and 2027. By 2027, it is expected to reach $46.3 billion!

23. Technology is booming, but not all investors are happy. Facebook became Investor Enemy #1 in 2018 after the Cambridge Analytica scandal resulted in a massive 19% share drop in a single day.

(Source: Profit Confidential)

Just because the industry is gradually increasing in value, doesn't necessarily mean everybody is making a profit out of it. On the contrary, even the Big Five in the tech business are not 100% fail-safe. Facebook investors felt that particularly hard in March 2018. As the Cambridge Analytica data breach scandal erupted, their stocks plummeted in a matter of hours. That fateful day cost shareholders a staggering $120 billion.

24. Despite all the risks and threats, recent technology innovations will continue to be a hot topic in the business world. In 2020, over 61% of organizations planned to use ggBit wi-fi networking actively, and 48% intend to adopt IoT technologies.

(Source: Spiceworks)

The future is now, and tech companies are ready to ride the wave of digital evolution in search of competitive advantage. Process automation and optimization, emerging tech development, and a skilled workforce will be the cornerstones of any successful trend adoption.

IT Industry Trends – Key Takeaways

• We can, in all fairness, predict a bright future the current information technology trends like AI, IoT, VR, and blockchain. They are expected to completely revolutionise whole sectors of the economy like healthcare, military, construction, etc.
• Tech automation will result in the loss of many manual jobs but will open vast opportunities for employment in other markets.
• Protecting the clients and fighting against regulations will be top priorities for companies in the tech niche.