The United States IT spending market size USD 1.35 Trillion in 2025. The industry is expected to grow at a CAGR of 3.80% during the forecast period of 2026-2035. By 2035, the market is expected to reach USD 1.96 Trillion.
Cybersecurity is playing a key role in the United States IT spending market due to the rising cyber threats, urging organizations to invest heavily in protective measures. With surging incidents of data breaches and ransomware, companies and government bodies are prioritizing spending on advanced security solutions such as zero-trust architectures, threat detection, and endpoint protection. According to industry reports, the government cybersecurity spending across the Unites States surpassed USD 10 billion in 2023, driving the market growth.
The integration of artificial intelligence (AI) into business processes is significantly driving the United States IT spending market as it enables organizations to automate tasks while enhancing decision-making and improving operational efficiency. Companies are investing in AI-powered tools, such as predictive analytics, natural language processing, and robotic process automation to optimize workflows and customer experiences. In October 2024, Chipotle introduced Ava Cado, an AI-driven hiring tool developed in partnership with Paradox to automate various recruitment tasks. This widespread adoption is fuelling the spending on AI platforms, data management, and skilled talent, making AI integration a cornerstone of digital transformation and IT budgets nationwide.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
3.8%
Value in USD Trillion
2026-2035
*this image is indicative*
| United States IT Spending Market Report Summary | Description | Value |
| Base Year | USD Trillion | 2025 |
| Historical Period | USD Trillion | 2019-2025 |
| Forecast Period | USD Trillion | 2026-2035 |
| Market Size 2025 | USD Trillion | 1.35 |
| Market Size 2035 | USD Trillion | 1.96 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 3.80% |
| CAGR 2026-2035 - Market by Region | Southeast | 4.9% |
| CAGR 2026-2035 - Market by Types | Enterprise Software | 4.3% |
The rise in generative AI investments is influencing the United States IT spending market outlook by significantly surging the demand for advanced computing infrastructure, software, and services. Companies are investing heavily in AI models that require powerful GPUs, high-capacity data centres, and specialized hardware to process massive datasets and run complex algorithms. In February 2025, Microsoft revealed plans of investing around USD 80 billion in AI-related capital expenditures in 2025, boosting cloud service usage and data centre expansion, further accelerating the spending on AI software development tools.
Cloud computing expansion is driving the United States IT spending market growth due to the shifting focus of businesses from traditional on-premises infrastructure to scalable, flexible cloud services. Companies are increasing investments in public, private, and hybrid cloud solutions to improve agility, reduce capital expenses, and support remote workforces. In January 2025, Amazon Web Services invested USD 11 billion in Georgia to expand cloud infrastructure and boost AI technology capabilities. Such moves are making cloud adoption a cornerstone of modern IT budgets and digital transformation strategies in the country.
Data centre modernization is largely contributing to the United States IT spending market as organizations are upgrading legacy infrastructure to support increasing demands for cloud services, AI, and big data analytics. Modern, energy-efficient data centres are enabling faster processing, greater scalability, and improved security. In April 2025, Dell Technologies unveiled advancements in its industry-leading storage, server, and data protection portfolios to assist organizations in achieving data centre modernization. This trend is boosting the spending on new servers, cooling technologies, software-defined networking, and automation tools.
Thriving investments in semiconductor production is complimenting the United States IT spending market development. With the growing demand for advanced technologies like AI, cloud computing and 5G, the need for high-performance semiconductors is intensifying. Boosting domestic semiconductor production is helping reduce reliance on global supply chains, improving security and stability. In March 2025, the CHIPS and Science Act allocated USD 39 billion to boost semiconductor manufacturing in the United States. These investments are enabling the development of cutting-edge chips for powering modern IT infrastructure.
The rollout of 5G networks for enabling faster data transmission and supporting the growth of IoT applications is favouring the United States IT spending market revenue. 5G technology offers enhanced bandwidth, reduced latency, and increased device connectivity for facilitating real-time data processing and communication across various sectors. As per industry reports, The United States recorded 115.1 million 5G subscriptions in Q4 of 2022, rising 12% from 103.2 million in Q3 of 2022. This advancement is particularly impactful in industries, such as healthcare, automotive, and manufacturing, where IoT devices require reliable and swift connectivity.
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The EMR’s report titled “United States IT Spending Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insight: The United States IT spending market value is growing, due to varying demand for data centre systems based on company size. Small businesses with fewer than 300 employees tend to invest selectively are focusing on scalable, cost-efficient solutions to support growth. Mid-sized companies are allocating more funds towards hybrid data centre systems, balancing on-premises infrastructure with cloud services to optimize performance and flexibility. Large enterprises with over 2000 employees are driving the highest spending, investing heavily in advanced, customized data centre architectures to support massive workloads, AI integration, and enhanced security. In March 2024, Google established a USD 1 billion data centre campus in Kansas City to enhance its cloud and AI services in the region, driving segment growth.
Market Breakup by Region
Key Insight: The West dominates the United States IT spending market due to the presence of major tech hubs. This region is home to industry giants who are investing heavily in cloud infrastructure, AI, and enterprise software. For instance, in February 2025, Google revealed plans of increasing its capital investments to USD 75 billion for expanding its AI and cloud capacity. California accounts for a significant share of national IT budgets on account of constant innovation and high digital adoption rates. Rising investments in ongoing cloud infrastructure projects along with the surging research & development spending are shaping the national IT trends.
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Enterprise Software & Communication Services to Gain Popularity in the United States
In the United States IT spending industry, companies with more than 2,000 employees have emerged as major investors in business intelligence software due to critical role in driving data-driven decisions across complex operations. Large enterprises are allocating substantial budgets to advanced BI platforms to analyse vast datasets, uncover insights, and optimize performance. Major corporations, such as JPMorgan Chase and Procter & Gamble are leveraging business intelligence to enhance financial forecasting, customer analytics, and supply chain efficiency. This heavy investment is reflecting the growing need for real-time analytics and competitive advantage in an increasingly data-centric business environment.
Communications services are driving the United States IT spending market with spending patterns differing by company size. Small businesses with fewer than 300 employees are prioritizing cost-effective, cloud-based communication tools to support remote work and collaboration. As per industry reports, approximately 22 million adults in the United States worked remotely in 2024. Mid-sized companies (300-2000 employees) are investing more broadly in unified communication platforms to integrate voice, video, and messaging to enhance productivity. Large enterprises with over 2000 employees are allocating significant budgets to robust, secure communications infrastructure, including private networks and advanced collaboration suites.
The United States IT spending market continues to grow as organizations intensify their focus on digital transformation, cloud adoption, and cybersecurity enhancement. Enterprises across industries are allocating sustained budgets to modernize IT infrastructure, optimize software environments, and strengthen network resilience. The rising dependence on automation, advanced analytics, and hybrid work technologies is reshaping enterprise technology strategies, supporting steady expansion in IT investment. This momentum reflects the increasing need for scalable digital systems, secure connectivity, and efficient data management across U.S. businesses.
In parallel, the push for innovation, combined with government support for secure and future-ready digital ecosystems, is reinforcing the market’s upward trajectory. Companies are prioritizing modernization of legacy systems, adoption of AI-driven tools, and integration of managed IT services to maintain operational agility. As organizations align their long-term strategies with evolving technology demands, the United States IT spending market maintains strong growth, supported by key trends such as cloud computing, cybersecurity spending, enterprise software upgrades, and mobility solutions.
Midwest & Southwest to Witness Higher IT Spending in the United States
The Midwest is a rising IT powerhouse in the United States IT spending market with growing investments in smart manufacturing, fintech, and cloud infrastructure. In April 2025, SEMIEXPO Heartland highlighted the Midwest’s growing role as a global leader in smart manufacturing and mobility. The presence of strong academic institutions and a lower cost of operations is offering opportunities to startups and established firms. The Midwest is also strategically positioned for IT services catering to healthcare, automotive, and manufacturing industries. The region is evolving rapidly into a major IT spending and development cluster, closely following the West.
| CAGR 2026-2035 - Market by | Region |
| Southeast | 4.9% |
| West | 4.1% |
| Mid West | XX% |
| Southwest | XX% |
| Northeast | XX% |
The Southwest United States IT spending industry is becoming a critical player in IT spending, driven by favourable business climates, tax incentives, and affordable real estate. Austin has emerged as a tech hub with the presence of several leading companies. Arizona is witnessing increased investments in data centres and semiconductor manufacturing. The region is further attracting startups and large enterprises seeking to reduce operational costs whilst maintaining access to a skilled workforce.
Key players in the United States IT spending market are deploying strategies that focus on innovation, cloud adoption, cybersecurity enhancement, and strategic partnerships. Companies are prioritizing cloud migration and infrastructure modernization, leveraging platforms, such as AWS, Microsoft Azure, and Google Cloud to enhance scalability and reduce operational costs. Investments in cybersecurity solutions are surging, driven by increasing threats and regulatory requirements, leading firms to adopt zero-trust architecture and AI-driven threat detection.
Digital transformation initiatives are central, with enterprises implementing AI, machine learning, and data analytics to streamline operations and gain competitive advantage. United States IT spending market players also focus on managed services and subscription-based models, providing flexibility and predictable costs for clients. Mergers and acquisitions are used to gain technological capabilities or expand market presence. Notable players are acquiring niche firms to enhance service offerings. Additionally, public-private partnerships and government contracts are playing a significant role, especially in sectors, such as defence, healthcare, and education.
Accenture Plc, founded in 1989 and headquartered in Dublin, Ireland, offers consulting, technology, and outsourcing services across industries. The company’s capabilities span digital transformation, cloud computing, cybersecurity, and data analytics, serving clients globally to improve operational efficiency and drive innovation through customized business and IT solutions.
IBM Corporation, founded in 1911 and headquartered in New York, the United States, is known as a pioneer in computing for providing cloud services, artificial intelligence solutions, and enterprise software. IBM also offers IT infrastructure, blockchain, and consulting services, helping organizations modernize operations and manage complex digital ecosystems efficiently and securely.
Cognizant Technology Solutions Corporation, founded in 1994 and headquartered in Teaneck, the United States delivers IT services, including consulting, application development, systems integration, and business process outsourcing. Cognizant specializes in areas, such as digital engineering, cloud migration, AI, and industry-specific technology solutions for clients in healthcare, finance, and retail sectors.
Google LLC, a subsidiary of Alphabet Inc., was founded in 1998 and is headquartered in Mountain View, the United States. Initially a search engine company, Google now provides cloud computing, advertising solutions, enterprise software, and AI-powered tools with its offerings including Google Cloud, Android, Chrome, and productivity platforms.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the United States IT spending market are Intel Corporation, and others.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 1.35 Trillion.
Key strategies driving the market include increased investments in cloud computing, cybersecurity enhancements, adoption of AI and automation, expansion of 5G infrastructure, semiconductor manufacturing growth, and data centre modernization. These focus on boosting agility, security, innovation, and supporting digital transformation across industries.
Collaborating with companies of emerging nations and upgrading current technology to adapt with the changing market are the currently followed trends in the market.
Data centre systems, enterprise software, enterprise IT services, devices, and communications services are the types in the market.
The company sizes in the market include less than 300 employees, 300-2000 employees, and more than 2000 employees.
The key players in the market report include Accenture Plc, IBM Corporation, Cognizant Technology Solutions Corporation, Google LLC (Alphabet Inc.), Intel Corporation and others.
The market is projected to grow at a CAGR of 3.80% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach USD 1.96 Trillion by 2035.
The West dominates the market due to the presence of major tech hubs.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and
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| Breakup by Types |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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