2024 technology industry outlook

Preparing for a return to growth in the tech market

How can technology companies position themselves for a robust and resilient future? Our 2024 technology industry outlook examines recent challenges in the industry, a renewed focus on growth and innovation, and key considerations for tech leaders in the year ahead.

A renewed focus on innovation

The technology industry flourished during the early pandemic years as companies accelerated their digital transformation efforts. But the industry has hit several speed bumps over the past two years. High inflation, elevated interest rates, and considerable macroeconomic and global uncertainties contributed to a softening of consumer spending, lower product demand, falling market capitalizations, and workforce reductions in 2022. Headwinds continued into 2023, with slight weakening of global tech spending and rising layoffs. But there are now glimmers of hope that a tech comeback may be imminent: Economists have lowered their assessments of recession risk, and analysts are optimistic that the tech sector could return to modest growth in 2024.

As the technology market faced heightened global challenges over the past few years, Deloitte urged tech leaders to evaluate where manufacturing happens, to improve the transparency and resiliency of their supply chains, and to prepare proactively for future systemic risks. We suggested leaders use technology to streamline business processes, rely more on intelligent automation, reduce tech debt by implementing leading practices for software development, and modernize legacy architectures by migrating to cloud resources and anything-as-a-software (XaaS) services. We also recommended that tech companies consider how to extend their reach into other industries, using digital advancements to spur transformation. Finally, we advised leaders to build up talent in critical areas such as artificial intelligence (AI), robotic process automation (RPA), and cybersecurity.

With global and economic uncertainties continuing into 2024, these recommendations remain important. But it’s likely time to refocus on innovation and growth as well. 

Our 2024 technology industry outlook explores some of the trends and strategies we expect tech leaders to focus on this year—and beyond:

  • Angling for a comeback, with help from cloud, AI, and cybersecurity. Enterprise spending on software and IT services—particularly artificial intelligence, cloud computing, and cybersecurity technology—is expected to enable the most growth in the tech market over the coming year.
  • Striking a balance between globalization and self-reliance. The worldwide, interconnected nature of the tech industry heightens the risk of disruptions from geopolitical unrest, supply chain volatility, raw material shortages, and new regulations and policies.
  • Setting the stage for growth with generative AI. The next year is expected to be transitional for generative AI, with tech companies experimenting and finding applications that can drive efficiency and productivity.
  • Reckoning with regulations for the tech industry. Governments around the world are evaluating the impacts that massive tech platforms and social networks have on businesses and consumers.

Download the full report to learn more about the potential effects of technology industry trends, key actions to take, and critical questions to ask.

A closer look at this year’s trends

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