Despite widespread market volatility and geopolitical tensions, the global tech sector is demonstrating unexpected resilience, according to a comprehensive new industry survey released by international law firm DLA Piper.

The firm’s 2024 Tech Index, which expanded its scope beyond Europe for the first time to include 1,200 executives in six major regions, reveals a tech sector that appears largely unphased by current economic headwinds. The survey found that approximately two-thirds of technology companies anticipate revenue growth in the next 12 months, with over a third projecting increases exceeding 6%.

The optimistic global tech sector outlook comes when many vital markets grapple with sluggish post-pandemic recovery and persistent inflation concerns. The study captures insights from small enterprises to major corporations with revenues between US$10 million and US$10 billion, providing a comprehensive view of different business scales.

The survey recorded its highest-ever confidence score of 71, surpassing the previous peak of 68. This sentiment was consistent across regions, with North America, Latin America, and Africa showing extreme confidence levels. At the same time, the Middle East, Europe, and the Asia Pacific demonstrated slightly more measured but still positive outlooks.

The research identified several vital drivers supporting this confidence in the global tech sector, including positive sentiment about venture capital markets, talent availability, and the regulatory environment. However, when explicitly asked about geopolitical factors, respondents’ confidence dropped significantly, with the score falling to 53, reflecting ongoing concerns about international tensions and trade relationships.

Artificial intelligence emerged as a dominant theme, with 63% of respondents identifying it as their primary growth opportunity. European organisations showed extreme enthusiasm for AI, with 72% highlighting it as their key focus area for development.

Mark O’Conor, Global Co-Chair of DLA Piper’s Tech sector in London, contextualised the findings: “For the first time, this report offers a truly global perspective on the tech sector, drawing insights from industry leaders and policymakers worldwide,” he said.

The study also reveals an evolution in how technology companies approach challenges. Having navigated through recent disruptions, including the pandemic, supply chain issues, and economic volatility, many organisations appear to have developed greater adaptability in their business strategies.

While overall sentiment remains positive, companies are adopting a more measured approach to growth compared to previous years. The research indicates a shift toward more disciplined investment strategies and careful evaluation of new technologies, particularly in AI implementation and digital transformation.

This balanced approach suggests that while the global tech sector outlook for 2024 remains broadly positive, industry leaders are tempering their optimism with practical considerations and more careful strategic planning. The sector appears to be entering a phase characterised by more sustainable growth patterns rather than the aggressive expansion seen in previous years.

Regulatory compliance, which has historically been viewed as a potential barrier to growth, is now seen in a more positive light by many respondents. The survey indicates that 75% of participants view the current regulatory environment as conducive to growth, suggesting that clear regulatory frameworks might support rather than hinder the sector’s development.

Tags: Digital Transformation