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Business Environment Profiles - United States

Private investment in computers and software

Published: 17 July 2025

Key Metrics

Private investment in computers and software

Total (2025)

1322 $ billion

Annualized Growth 2020-25

7.0 %

Definition of Private investment in computers and software

Private investment in computers and software is the entire amount that companies spend each year on all types of information technology hardware and programs.. Data is inflation-adjusted with 2017 as the base year and is sourced from the US Bureau of Economic Analysis.

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Recent Trends – Private investment in computers and software

Private investment in computers and software is expected to reach $1,321.9 billion, reflecting sustained growth in technology-driven business transformation. The year has been characterized by robust investment in cloud-based solutions, which continue to support hybrid and remote work models. Demand has been particularly strong for enterprise software focused on operational efficiency, worker collaboration, and compliance with evolving data security regulations. Investors have targeted software providers because of their scalable business models and potential for profitability. Regulatory forces related to privacy and cybersecurity have remained top priorities, further driving demand for innovative compliance-focused tools.

Between 2020 and 2025, private investment in computers and software expanded rapidly, with an annualized growth rate of 7.0%. The period was notably influenced by businesses' accelerated push toward digital transformation, a trend hastened by adaptations to the COVID-19 pandemic. Organizations widely adopted remote work technologies and digital collaboration tools to ensure business continuity under new operating conditions. This created a lasting need for scalable cloud computing infrastructure, advanced enterprise software, and sophisticated data analytics platforms to modernize processes and remain competitive. Cybersecurity rose to become a key investment focus after significant increases in digital threats; this led to expansive investments in advanced security infrastructure and software. Regulatory scrutiny on data privacy also increased, prompting organizations to put additional resources into compliance-centered technology. These developments underscored technology's role as a foundational driver of business resilience, productivity, and innovation.

The broader macroeconomic environment, marked by renewed economic activity and shifting labor market needs, further influenced investment flows into the software sector, with companies reacting to efficiency pressures and ongoing uncertainties by modernizing IT systems. At the same time, interest in cloud-based delivery models reflected not only their operational advantages, but also their adaptability to compliance and security imperatives. The confluence of these factors—the rise of remote work, digital security needs, and regulatory evolution—contributed to heightened, sustained levels of private investment in technology.

During the five-year period to 2025, persistent business reliance on digital technologies and evolving market pressures have collectively shaped the investment landscape, leading to steady and robust growth in private investment in computers and software.

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5-Year Outlook – Private investment in computers and software

Private investment in computers and software is forecast to increase to $1,375.9 billion in 2026,...

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