IT spending growing at an ever-faster pace worldwide – Where do Europe and Hungary stand in the global competition?

Following a 7.2% global increase in 2024, the 2025 forecast indicates an even faster climb in IT investments. Software and data centers are expected to grow by more than 14%, whereas devices, IT services, and communications will see sub-9% increases. Projections suggest global IT spending could hit USD 7 trillion by 2028.

In Europe, spending rebounded after a dip in 2022, growing by 5.5% in 2023 and 6.8% in 2024, boosted by AI adoption. The expected 8.7% growth in 2025 marks the strongest annual increase since the pandemic. However, data center spending in Europe is lagging behind global averages.

Hungary’s IT sector is expected to reach USD 8.33 billion in 2025, marking a modest 3.6% increase. IT services have stagnated at USD 2.14 billion, and while software and hardware spending show slight growth, sector expansion is hampered by talent shortages, delayed EU funds, and political cycle effects.

The share of GDP allocated to IT services in Hungary (0.90%) places the country in the EU’s mid-range but still far from the EU average (1.62%). The Deloitte analysis highlights key challenges ahead, including regulatory compliance pressures (NIS2 and DORA), cybersecurity risks, and a cautious investment climate due to inflation and high interest rates.

“The biggest challenges for Hungary’s IT service sector are talent drain, cautious digital investments, and increasing compliance burdens,” said Dániel Kiss, Head of Technology Strategy at Deloitte Central Europe.

Further insights are available in the Deloitte Tech Trends 2025 report.