GenAI drives USD $4.96 trillion global IT spend by 2026

HG Insights forecasts global enterprise IT spending will reach USD $4.96 trillion in 2026, with 16.3 million businesses investing across software, services, hardware and communications.

The research group attributed the projected growth to faster adoption of generative AI, continued cloud expansion and modernisation of core technology stacks. It also cited demand for data centres, servers and related infrastructure.

HG Insights has also published its first IT spend forecast for small and medium-sized businesses. SMB IT spending is projected to reach USD $460.5 billion in 2026.

Software and services

Software remains a major component of expected budgets. Enterprise software spending is forecast at USD $1.39 trillion in 2026, while SMB software spending is projected at USD $143.3 billion.

Services make up the largest single share of enterprise IT outlay. Enterprise IT services spending is forecast at USD $1.95 trillion, representing more than 43% of total enterprise IT spend.

Cloud services account for a substantial part of service budgets in both segments. They are forecast to make up 36.9% of enterprise IT spend and 37% of SMB IT spend.

The figures point to a continued shift in technology procurement. Software and services together represent a larger share of enterprise technology spending than hardware and communications combined, reflecting a move towards cloud, platforms and subscription-based models.

Regional split

The Americas represent the largest regional block in the forecast. The United States, Central America and South America together are estimated to account for roughly USD $1.98 trillion in IT spend in 2026-almost 44% of global enterprise investment.

No comparable regional totals were provided for other parts of the world in the information released, though the full report includes regional and vendor-level insights.

GenAI and hardware

HG Insights identified generative AI as a major influence on 2026 technology investment plans, saying acceleration is increasing demand for data centres, servers and infrastructure.

The forecast also highlighted cost pressures shaping hardware purchasing decisions. Tariffs are raising the cost of hardware, which the firm listed as a second major driver of IT investment patterns in 2026.

This sits against a backdrop of uncertain economic conditions, with enterprise IT investment described as resilient despite the uncertainty.

The firm also said enterprise buyers are factoring suppliers' product direction into procurement, evaluating vendor roadmaps and AI capabilities as part of purchasing decisions.

Report detail

The 2026 forecast covers more than 130 IT categories. It also includes enterprise install base and spending intelligence.

The research draws on material from TrustRadius, described as a B2B buyer intelligence platform. The report incorporates verified reviewer insights on popular products, along with first-party intent data on how buyers research software purchases.

HG Insights positions the combined enterprise and SMB dataset as a way to compare spending patterns across organisation sizes, saying the SMB forecast adds deeper insight into the overall market landscape.