Despite widespread market fluctuations and escalating geopolitical tensions, the global technology sector has demonstrated remarkable resilience, according to a comprehensive new business survey conducted by international law firm DLA Piper.
The agency’s 2024 report, marking its first expansion beyond Europe, shows a tech sector resilient to current market turbulence, with 1,200 executives across six key regions seemingly unaffected by prevailing financial headwinds? According to the latest survey findings, approximately two-thirds of industry experts expect revenue growth within the next 12 months, with more than one-third anticipating increases exceeding 6%.
While some economies struggle to rebound from the pandemic’s aftermath and contend with persistent inflationary pressures, the tech industry presents a surprisingly rosy scenario globally. The examination provides valuable insights from small businesses to large corporations with annual revenues spanning US$10 million to US$10 billion, providing a comprehensive overview of diverse organizational scales.
The survey achieved a new record-high confidence rating of 71%, eclipsing the previous high of 68%. Throughout the regions, a pervasive sense of confidence was consistently evident, particularly in North America, Latin America, and Africa, where excessively high levels of self-assurance were observed. During the same period, the Middle East, Europe, and the Asia-Pacific region displayed relatively more subdued yet still positive attitudes.
The analysis identified several key drivers underpinning this confidence within the global tech industry, including buoyant sentiment regarding venture capital markets, accessible technological expertise, and a favorable regulatory environment. Although respondents’ self-assurance remained generally high, a significant decline was observed when they were specifically asked about geopolitical factors, resulting in a substantially lower rating of 53%, likely due to ongoing concerns surrounding global political tensions and international trade dynamics.
The rise of synthetic intelligence dominated the landscape, with an overwhelming 63% of respondents identifying it as their top technological investment priority. European organizations have expressed an unwavering commitment to artificial intelligence (AI), with a staggering 72% naming it their top priority area for growth and development.
According to Mark O’Connor, International Co-Chair of DLA Piper’s Technology Sector in London, “This groundbreaking report offers a truly global perspective on the technology industry for the first time, incorporating expert insights from business leaders and policymakers globally.”
The examination also uncovers a transformation in how expertise companies approach challenges. As organisations navigate through the most recent disruptions – including the pandemic, supply chain challenges, and financial volatility – it appears that many have cultivated a greater capacity for adapting their business models.
While overall sentiment remains upbeat, companies are increasingly adopting a more cautious approach to growth compared to previous years. The findings indicate a marked transition towards more rigorous budgeting strategies and prudent assessments of cutting-edge innovations, particularly in the realms of finance and technology.
While the global tech sector forecast for 2024 remains generally upbeat, corporate leaders are exercising prudence by addressing practical concerns and adopting a more measured approach to strategic planning. The industry is currently experiencing a shift towards more sustainable growth models, marking a significant departure from its previously rapid expansion.
Regulatory compliance, once viewed as a potential obstacle to innovation, is now widely regarded with greater optimism by many stakeholders. According to the survey, a significant 75 percent of respondents believe the current regulatory environment fosters growth, implying that well-defined frameworks could actually aid rather than impede industry progress.
