Uptime Report Research · Government Accounts Data

IT Spending by Industry: Business IT Investment Reached $1.19 Trillion in 2025, and Finance Grew It Fastest

IT spending by industry, measured as investment in computers, software, and communications equipment, totaled $1.19 trillion across U.S. private industries in 2025, or 2.53% of their gross output, up from 1.88% in 2015. Information firms invest the most relative to output (14.3%), followed by finance and insurance (5.5%), which also grew its IT investment fastest.

$1.19Tprivate IT investment in 2025, up 19% on 2024
2.53%of gross output went to IT in 2025, vs 1.88% in 2015
14.3%information sector, the most IT-intensive
+179%finance and insurance IT investment, 2015 to 2025, the fastest sector
63%software share of IT investment, down from a 69% peak in 2023

Most published figures on IT spending by industry come from paid analyst surveys. This report uses the U.S. government’s own national accounts instead. We downloaded the Bureau of Economic Analysis (BEA) detailed estimates of private nonresidential investment for 74 industries and more than 90 asset types, kept the IT assets (computers and peripherals, three kinds of software, and communications equipment), and divided each industry’s total by its gross output from BEA’s GDP by Industry accounts. Both files were published by BEA on September 30, 2026 and run through 2025.

IT intensity by industry, 2015 vs 2025

14 of 19 sectors put a larger share of their output into IT in 2025 than in 2015. Information moved from 10.2% to 14.3%, and finance and insurance from 3.4% to 5.5%. The ratio fell in 5 sectors (mining, construction, educational services, health care and social assistance, and other services), where IT investment grew more slowly than output.

share rose share fell

0.1%0.25%0.5%1%2.5%5%10%20152025Agriculture: IT investment 0.06% of gross output in 2015, 0.08% in 2025 ($0.5B in 2025)Agriculture 0.06%0.08% AgricultureMining: IT investment 0.43% of gross output in 2015, 0.24% in 2025 ($1.7B in 2025)Mining 0.43%0.24% MiningUtilities: IT investment 2.17% of gross output in 2015, 3.74% in 2025 ($25.6B in 2025)Utilities 2.17%3.74% UtilitiesConstruction: IT investment 0.29% of gross output in 2015, 0.25% in 2025 ($6.5B in 2025)Construction 0.29%0.25% ConstructionManufacturing: IT investment 0.77% of gross output in 2015, 0.79% in 2025 ($57.3B in 2025)Manufacturing 0.77%0.79% ManufacturingWholesale trade: IT investment 1.44% of gross output in 2015, 1.71% in 2025 ($53.2B in 2025)Wholesale trade 1.44%1.71% Wholesale tradeRetail trade: IT investment 1.78% of gross output in 2015, 2.52% in 2025 ($74.1B in 2025)Retail trade 1.78%2.52% Retail tradeTransportation and warehousing: IT investment 1.14% of gross output in 2015, 1.19% in 2025 ($23.1B in 2025)Transportation and warehousing 1.14%1.19% Transportation and warehousingInformation: IT investment 10.18% of gross output in 2015, 14.28% in 2025 ($411.8B in 2025)Information 10.18%14.28% InformationFinance and insurance: IT investment 3.36% of gross output in 2015, 5.52% in 2025 ($241.8B in 2025)Finance and insurance 3.36%5.52% Finance and insuranceReal estate and leasing: IT investment 1.12% of gross output in 2015, 1.34% in 2025 ($35.2B in 2025)Real estate and leasing 1.12%1.34% Real estate and leasingProfessional and technical services: IT investment 2.48% of gross output in 2015, 2.76% in 2025 ($100.8B in 2025)Professional and technical services 2.48%2.76% Professional and technical servicesManagement of companies: IT investment 4.36% of gross output in 2015, 4.45% in 2025 ($39.0B in 2025)Management of companies 4.36%4.45% Management of companiesAdministrative and waste services: IT investment 2.94% of gross output in 2015, 3.32% in 2025 ($51.7B in 2025)Administrative and waste services 2.94%3.32% Administrative and waste servicesEducational services: IT investment 2.67% of gross output in 2015, 2.05% in 2025 ($10.3B in 2025)Educational services 2.67%2.05% Educational servicesHealth care and social assistance: IT investment 0.78% of gross output in 2015, 0.73% in 2025 ($28.2B in 2025)Health care and social assistance 0.78%0.73% Health care and social assistanceArts and recreation: IT investment 1.28% of gross output in 2015, 1.29% in 2025 ($7.7B in 2025)Arts and recreation 1.28%1.29% Arts and recreationAccommodation and food services: IT investment 0.43% of gross output in 2015, 0.46% in 2025 ($8.4B in 2025)Accommodation and food services 0.43%0.46% Accommodation and food servicesOther services: IT investment 1.41% of gross output in 2015, 1.38% in 2025 ($15.2B in 2025)Other services 1.41%1.38% Other services

IT investment (computers and peripherals, software, communications equipment) as a percent of each sector’s gross output, current dollars, log scale. Real estate excludes housing. Source: BEA Fixed Assets detailed estimates and GDP by Industry; Uptime Report analysis.

Who spends the most on IT, in dollars

In dollar terms the list is led by information ($411.8B), finance and insurance ($241.8B), and professional and technical services ($100.8B). Information and finance together account for 55% of all private IT investment, while producing 15% of private gross output. Manufacturing is the largest sector by output but spends 0.79% of it on IT; IT is only 7% of the sector’s nonresidential investment, against 53% for research and development and 27% for non-IT equipment.

Sector IT investment 2025 % of output 2015 % of output 2025 Change in $ 2015 to 2025 Per FTE employee 2025 Software share IT share of all capex
Information $411.8B 10.18% 14.28% +155% $152,914 49% 55%
Finance and insurance $241.8B 3.36% 5.52% +179% $36,541 72% 60%
Management of companies $39.0B 4.36% 4.45% +65% $15,844 77% 72%
Utilities $25.6B 2.17% 3.74% +139% $43,027 73% 8%
Administrative and waste services $51.7B 2.94% 3.32% +95% $6,170 82% 53%
Professional and technical services $100.8B 2.48% 2.76% +104% $9,746 72% 34%
Retail trade $74.1B 1.78% 2.52% +147% $5,424 58% 32%
Educational services $10.3B 2.67% 2.05% +14% $2,808 67% 18%
Wholesale trade $53.2B 1.44% 1.71% +94% $9,050 69% 35%
Other services $15.2B 1.41% 1.38% +66% $2,478 69% 23%
Real estate and leasing $35.2B 1.12% 1.34% +111% $15,012 52% 16%
Arts and recreation $7.7B 1.28% 1.29% +93% $3,564 52% 11%
Transportation and warehousing $23.1B 1.14% 1.19% +78% $3,591 71% 14%
Manufacturing $57.3B 0.77% 0.79% +32% $4,659 72% 7%
Health care and social assistance $28.2B 0.78% 0.73% +66% $1,329 74% 12%
Accommodation and food services $8.4B 0.43% 0.46% +99% $743 69% 15%
Construction $6.5B 0.29% 0.25% +62% $797 74% 7%
Mining $1.7B 0.43% 0.24% -18% $3,005 75% 1%
Agriculture $0.5B 0.06% 0.08% +95% $435 81% 1%
All private industries $1,192.2B 1.88% 2.53% +121% $9,452 63% 28%

Sorted by IT investment as a percent of gross output in 2025. Per FTE uses BEA full-time equivalent employees by industry (NIPA Table 6.5D). “IT share of all capex” is IT investment divided by all private nonresidential fixed investment (equipment, structures, and intellectual property) in the sector.

The 25 most IT-intensive industries

At a finer level the leaders are the industries that sell digital services. Data processing, hosting, and other information services invested 23.5% of its gross output in IT in 2025, up from 17.9% in 2015, and its share of all private IT investment rose from 10% to 20%. Banks and credit intermediation (7.2%) and securities and investments (6.7%) are the most IT-intensive industries outside the information sector.

Information Finance and insurance Other sectors 2015 level

0%5%10%15%20%Data processing, hosting, and other information services (Information): 23.51% of gross output in 2025, 17.94% in 2015; $235.9B IT investmentData processing, hosting, and other information services23.5%Broadcasting and telecommunications (Information): 12.34% of gross output in 2025, 11.12% in 2015; $116.6B IT investmentBroadcasting and telecommunications12.3%Publishing, including software (Information): 7.86% of gross output in 2025, 4.84% in 2015; $56.9B IT investmentPublishing, including software7.9%Banks and credit intermediation (Finance and insurance): 7.22% of gross output in 2025, 4.02% in 2015; $106.4B IT investmentBanks and credit intermediation7.2%Securities and investments (Finance and insurance): 6.65% of gross output in 2025, 3.22% in 2015; $68.9B IT investmentSecurities and investments6.7%General merchandise stores (Retail trade): 5.90% of gross output in 2025, 3.33% in 2015; $18.6B IT investmentGeneral merchandise stores5.9%Computer systems design (Professional and technical services): 5.61% of gross output in 2025, 3.45% in 2015; $43.9B IT investmentComputer systems design5.6%Water transportation (Transportation and warehousing): 4.75% of gross output in 2025, 3.92% in 2015; $3.7B IT investmentWater transportation4.8%Management of companies (Management of companies): 4.45% of gross output in 2025, 4.36% in 2015; $39.0B IT investmentManagement of companies4.4%Insurance carriers and related (Finance and insurance): 3.84% of gross output in 2025, 3.34% in 2015; $61.9B IT investmentInsurance carriers and related3.8%Utilities (Utilities): 3.74% of gross output in 2025, 2.17% in 2015; $25.6B IT investmentUtilities3.7%Administrative and support services (Administrative and waste services): 3.74% of gross output in 2025, 3.24% in 2015; $51.2B IT investmentAdministrative and support services3.7%Computer and electronic products (Manufacturing): 2.98% of gross output in 2025, 3.53% in 2015; $13.3B IT investmentComputer and electronic products3.0%Other retail (Retail trade): 2.69% of gross output in 2025, 2.03% in 2015; $45.7B IT investmentOther retail2.7%Other transportation and support (Transportation and warehousing): 2.31% of gross output in 2025, 1.61% in 2015; $8.5B IT investmentOther transportation and support2.3%Other professional and technical services (Professional and technical services): 2.28% of gross output in 2025, 2.52% in 2015; $53.2B IT investmentOther professional and technical services2.3%Rental and leasing (Real estate and leasing): 2.15% of gross output in 2025, 2.22% in 2015; $14.1B IT investmentRental and leasing2.2%Miscellaneous manufacturing (incl. medical) (Manufacturing): 2.09% of gross output in 2025, 1.49% in 2015; $3.8B IT investmentMiscellaneous manufacturing (incl. medical)2.1%Educational services (Educational services): 2.05% of gross output in 2025, 2.67% in 2015; $10.3B IT investmentEducational services2.1%Funds, trusts, and other financial vehicles (Finance and insurance): 1.78% of gross output in 2025, 0.35% in 2015; $4.7B IT investmentFunds, trusts, and other financial vehicles1.8%Amusement, gambling, and recreation (Arts and recreation): 1.72% of gross output in 2025, 1.45% in 2015; $4.6B IT investmentAmusement, gambling, and recreation1.7%Wholesale trade (Wholesale trade): 1.71% of gross output in 2025, 1.44% in 2015; $53.2B IT investmentWholesale trade1.7%Food and beverage stores (Retail trade): 1.64% of gross output in 2025, 1.05% in 2015; $5.9B IT investmentFood and beverage stores1.6%Rail transportation (Transportation and warehousing): 1.57% of gross output in 2025, 1.95% in 2015; $1.5B IT investmentRail transportation1.6%Printing (Manufacturing): 1.54% of gross output in 2025, 1.29% in 2015; $1.3B IT investmentPrinting1.5%

IT investment as a percent of gross output, 2025, for the 25 highest of 65 detailed industries. Red ticks mark the 2015 ratio.

The ownership rule matters here. BEA records assets in the industry that owns them, and assets under operating leases sit with the lessor rather than the user. Servers that a cloud provider owns and sells computing time on are therefore counted in the provider’s industry, not the customer’s. When firms move workloads to the cloud, their own IT investment can fall while the hosting industry’s rises, even if they use more computing. The growth in the data processing industry’s share of IT investment fits that pattern, though the BEA data cannot show how much of it comes from cloud migration.

Fastest-growing IT investment

From 2015 to 2025, private IT investment rose 121% in current dollars, from $538.7B to $1,192.2B. The fastest sectors were finance and insurance (+179%), information (+155%), retail trade (+147%), and utilities (+139%). Among detailed industries with at least $20 billion of IT investment in 2025, the fastest growth was in data processing, hosting, and other information services (+353%), securities and investments (+294%), publishing, including software (+257%). Mining was the only sector where IT investment fell in dollars, down 18%.

Excluding the information sector, IT investment went from 1.39% of gross output in 2015 to 1.77% in 2025. The rest of the economy is spending more on IT relative to its output, but more slowly than the digital industries. This is investment by IT buyers. For the revenue of the firms that sell IT services, see our report on IT services industry growth, which tracks Census data on computer services revenue.

Hardware vs software: the 2025 break

Computers and peripherals Software Communications equipment  Labels: software share of the year’s total

$0B$250B$500B$750B$1,000B$1,250B2005: Computers $81.6B2005: Software $178.6B2005: Communications $86.5B52%20052006: Computers $89.7B2006: Software $189.5B2006: Communications $96.0B2007: Computers $92.4B2007: Software $206.4B2007: Communications $106.2B2008: Computers $90.6B2008: Software $223.8B2008: Communications $100.1B2009: Computers $85.6B2009: Software $226.0B2009: Communications $85.8B2010: Computers $95.6B2010: Software $226.4B2010: Communications $99.9B54%20102011: Computers $91.4B2011: Software $249.8B2011: Communications $103.6B2012: Computers $98.7B2012: Software $272.1B2012: Communications $104.8B2013: Computers $97.5B2013: Software $285.6B2013: Communications $113.8B2014: Computers $97.4B2014: Software $303.6B2014: Communications $118.7B2015: Computers $96.8B2015: Software $316.1B2015: Communications $125.8B59%20152016: Computers $95.0B2016: Software $347.8B2016: Communications $129.4B2017: Computers $101.1B2017: Software $382.7B2017: Communications $138.8B2018: Computers $115.1B2018: Software $422.8B2018: Communications $133.9B2019: Computers $113.6B2019: Software $447.4B2019: Communications $128.7B2020: Computers $121.1B2020: Software $478.2B2020: Communications $121.6B66%20202021: Computers $141.5B2021: Software $533.1B2021: Communications $132.0B2022: Computers $154.6B2022: Software $601.0B2022: Communications $147.4B2023: Computers $142.6B2023: Software $638.0B2023: Communications $145.2B2024: Computers $173.8B2024: Software $686.0B2024: Communications $143.3B2025: Computers $270.9B2025: Software $751.3B2025: Communications $169.9B63%2025

U.S. private nonresidential IT investment by type, current dollars, summed across 74 BEA industries.

Software has been the bulk of business IT investment for two decades. Its share rose from 52% in 2005 to 59% in 2015 and a peak of 68.9% in 2023. Between 2015 and 2024, software investment grew 117% while computers and peripherals grew 80% and communications equipment 14%.

2025 broke the pattern. Investment in computers and peripherals jumped 56% in a single year, the largest percentage rise since 1963, from $173.8B to $270.9B, against 10% growth for software, so the software share fell to 63.0%. BEA’s detail spreads that $97.1B hardware increase widely: the largest gains were in data processing, hosting, and other information services ($24.9B), banks and credit intermediation ($17.0B), and computer systems design ($7.4B). Treat that industry split with care: BEA says its detailed estimates are more likely than the published totals to rest on judgmental trends or on trends in the higher-level aggregate.

Inside software, prepackaged software grew fastest: from $126.9B in 2015 to $372.4B in 2025 (+193%), against +114% for custom software and +70% for software firms build for their own use. Prepackaged software is now 50% of software investment, up from 40% in 2015.

What each industry buys

Computers and peripheralsPrepackaged softwareCustom softwareOwn-account softwareCommunications equipment

All private industriesAll private industries: Computers and peripherals 23% ($270.9B)23%All private industries: Prepackaged software 31% ($372.4B)31%All private industries: Custom software 23% ($279.1B)23%All private industries: Own-account software 8% ($99.9B)8%All private industries: Communications equipment 14% ($169.9B)14%Administrative and waste servicesAdministrative and waste services: Computers and peripherals 15% ($8.0B)15%Administrative and waste services: Prepackaged software 35% ($18.1B)35%Administrative and waste services: Custom software 26% ($13.5B)26%Administrative and waste services: Own-account software 21% ($11.1B)21%Administrative and waste services: Communications equipment 2% ($1.1B)AgricultureAgriculture: Computers and peripherals 14% ($0.1B)14%Agriculture: Prepackaged software 55% ($0.3B)55%Agriculture: Custom software 26% ($0.1B)26%Agriculture: Own-account software 0% ($0.0B)Agriculture: Communications equipment 5% ($0.0B)Management of companiesManagement of companies: Computers and peripherals 16% ($6.4B)16%Management of companies: Prepackaged software 30% ($11.8B)30%Management of companies: Custom software 22% ($8.7B)22%Management of companies: Own-account software 25% ($9.6B)25%Management of companies: Communications equipment 6% ($2.5B)6%MiningMining: Computers and peripherals 18% ($0.3B)18%Mining: Prepackaged software 41% ($0.7B)41%Mining: Custom software 31% ($0.5B)31%Mining: Own-account software 3% ($0.1B)Mining: Communications equipment 7% ($0.1B)7%ConstructionConstruction: Computers and peripherals 20% ($1.3B)20%Construction: Prepackaged software 38% ($2.5B)38%Construction: Custom software 28% ($1.8B)28%Construction: Own-account software 8% ($0.5B)8%Construction: Communications equipment 6% ($0.4B)Health care and social assistanceHealth care and social assistance: Computers and peripherals 21% ($5.9B)21%Health care and social assistance: Prepackaged software 40% ($11.3B)40%Health care and social assistance: Custom software 30% ($8.4B)30%Health care and social assistance: Own-account software 4% ($1.1B)Health care and social assistance: Communications equipment 5% ($1.5B)UtilitiesUtilities: Computers and peripherals 15% ($3.9B)15%Utilities: Prepackaged software 41% ($10.5B)41%Utilities: Custom software 30% ($7.8B)30%Utilities: Own-account software 2% ($0.5B)Utilities: Communications equipment 12% ($3.0B)12%Finance and insuranceFinance and insurance: Computers and peripherals 24% ($58.7B)24%Finance and insurance: Prepackaged software 41% ($99.7B)41%Finance and insurance: Custom software 26% ($62.4B)26%Finance and insurance: Own-account software 5% ($13.1B)Finance and insurance: Communications equipment 3% ($7.8B)ManufacturingManufacturing: Computers and peripherals 19% ($10.7B)19%Manufacturing: Prepackaged software 39% ($22.3B)39%Manufacturing: Custom software 29% ($16.6B)29%Manufacturing: Own-account software 4% ($2.5B)Manufacturing: Communications equipment 9% ($5.1B)9%Professional and technical servicesProfessional and technical services: Computers and peripherals 24% ($23.7B)24%Professional and technical services: Prepackaged software 28% ($27.9B)28%Professional and technical services: Custom software 35% ($35.2B)35%Professional and technical services: Own-account software 9% ($9.2B)9%Professional and technical services: Communications equipment 5% ($4.8B)Transportation and warehousingTransportation and warehousing: Computers and peripherals 20% ($4.6B)20%Transportation and warehousing: Prepackaged software 37% ($8.6B)37%Transportation and warehousing: Custom software 28% ($6.4B)28%Transportation and warehousing: Own-account software 6% ($1.4B)Transportation and warehousing: Communications equipment 9% ($2.0B)9%Other servicesOther services: Computers and peripherals 19% ($2.9B)19%Other services: Prepackaged software 35% ($5.4B)35%Other services: Custom software 26% ($4.0B)26%Other services: Own-account software 8% ($1.2B)8%Other services: Communications equipment 11% ($1.7B)11%Wholesale tradeWholesale trade: Computers and peripherals 27% ($14.2B)27%Wholesale trade: Prepackaged software 33% ($17.6B)33%Wholesale trade: Custom software 25% ($13.1B)25%Wholesale trade: Own-account software 11% ($5.9B)11%Wholesale trade: Communications equipment 4% ($2.3B)Accommodation and food servicesAccommodation and food services: Computers and peripherals 25% ($2.1B)25%Accommodation and food services: Prepackaged software 39% ($3.3B)39%Accommodation and food services: Custom software 29% ($2.5B)29%Accommodation and food services: Own-account software 0% ($0.0B)Accommodation and food services: Communications equipment 6% ($0.5B)6%Educational servicesEducational services: Computers and peripherals 21% ($2.1B)21%Educational services: Prepackaged software 24% ($2.5B)24%Educational services: Custom software 18% ($1.9B)18%Educational services: Own-account software 24% ($2.5B)24%Educational services: Communications equipment 12% ($1.3B)12%Retail tradeRetail trade: Computers and peripherals 21% ($15.9B)21%Retail trade: Prepackaged software 40% ($29.6B)40%Retail trade: Custom software 14% ($10.2B)14%Retail trade: Own-account software 5% ($3.4B)Retail trade: Communications equipment 20% ($15.0B)20%Real estate and leasingReal estate and leasing: Computers and peripherals 41% ($14.4B)41%Real estate and leasing: Prepackaged software 35% ($12.3B)35%Real estate and leasing: Custom software 14% ($4.8B)14%Real estate and leasing: Own-account software 4% ($1.3B)Real estate and leasing: Communications equipment 7% ($2.4B)7%Arts and recreationArts and recreation: Computers and peripherals 19% ($1.5B)19%Arts and recreation: Prepackaged software 29% ($2.2B)29%Arts and recreation: Custom software 21% ($1.7B)21%Arts and recreation: Own-account software 2% ($0.2B)Arts and recreation: Communications equipment 28% ($2.2B)28%InformationInformation: Computers and peripherals 23% ($94.2B)23%Information: Prepackaged software 21% ($85.7B)21%Information: Custom software 19% ($79.5B)19%Information: Own-account software 9% ($36.4B)9%Information: Communications equipment 28% ($116.1B)28%

Share of each sector’s 2025 IT investment by asset type. Sorted by total software share.

15 of 19 sectors spend between 65% and 85% of their IT investment on software. Information is the main exception: communications equipment is 28% of the sector’s IT investment, and broadcasting and telecommunications firms account for 76% of that. Real estate and leasing has the highest computer share (41%). It includes rental and leasing firms, which under BEA’s ownership rule hold the equipment they lease to other industries; computers are 47% of their IT investment. Software’s share rose between 2015 and 2025 in 14 of 19 sectors.

What this measure is

Capital investment: purchases of computers, storage, servers, and communications gear, plus software licenses, custom software development, and in-house software that BEA records as long-lived assets. Gross output is BEA’s measure of an industry’s production, principally sales or receipts, so the ratio works as an IT capital budget as a share of revenue.

What it leaves out

Operating IT spending: IT staff salaries (except those building own-account software), managed services and outsourcing fees, cloud and SaaS subscriptions, telecom service bills, and maintenance contracts. Avasant’s benchmark, the top search result, defines IT spending as a percent of revenue as IT operating spending including depreciation, from a company survey. The two ratios are not interchangeable.

Every industry, 2015 and 2025

Industry Sector IT investment 2025 IT investment 2015 Change % of output 2015 % of output 2025 Software share 2025 IT share of all capex 2025
Data processing, hosting, and other information services Information $235.9B $52.1B +353% 17.94% 23.51% 61% 71%
Broadcasting and telecommunications Information $116.6B $91.7B +27% 11.12% 12.34% 19% 55%
Publishing, including software Information $56.9B $15.9B +257% 4.84% 7.86% 62% 37%
Banks and credit intermediation Finance and insurance $106.4B $36.5B +192% 4.02% 7.22% 66% 49%
Securities and investments Finance and insurance $68.9B $17.5B +294% 3.22% 6.65% 74% 80%
General merchandise stores Retail trade $18.6B $7.6B +144% 3.33% 5.90% 57% 41%
Computer systems design Professional and technical services $43.9B $13.8B +218% 3.45% 5.61% 63% 54%
Water transportation Transportation and warehousing $3.7B $2.0B +83% 3.92% 4.75% 96% 45%
Management of companies Management of companies $39.0B $23.6B +65% 4.36% 4.45% 77% 72%
Insurance carriers and related Finance and insurance $61.9B $32.2B +92% 3.34% 3.84% 81% 70%
Utilities Utilities $25.6B $10.7B +139% 2.17% 3.74% 73% 8%
Administrative and support services Administrative and waste services $51.2B $26.2B +95% 3.24% 3.74% 83% 62%
Computer and electronic products Manufacturing $13.3B $12.3B +9% 3.53% 2.98% 54% 8%
Other retail Retail trade $45.7B $18.6B +145% 2.03% 2.69% 57% 34%
Other transportation and support Transportation and warehousing $8.5B $3.6B +139% 1.61% 2.31% 59% 27%
Other professional and technical services Professional and technical services $53.2B $31.8B +67% 2.52% 2.28% 80% 25%
Rental and leasing Real estate and leasing $14.1B $7.5B +89% 2.22% 2.15% 43% 15%
Miscellaneous manufacturing (incl. medical) Manufacturing $3.8B $2.5B +54% 1.49% 2.09% 85% 14%
Educational services Educational services $10.3B $9.1B +14% 2.67% 2.05% 67% 18%
Funds, trusts, and other financial vehicles Finance and insurance $4.7B $0.6B +710% 0.35% 1.78% 86% 37%
Amusement, gambling, and recreation Arts and recreation $4.6B $2.0B +129% 1.45% 1.72% 52% 14%
Wholesale trade Wholesale trade $53.2B $27.3B +94% 1.44% 1.71% 69% 35%
Food and beverage stores Retail trade $5.9B $2.4B +144% 1.05% 1.64% 70% 22%
Rail transportation Transportation and warehousing $1.5B $1.6B -10% 1.95% 1.57% 83% 8%
Printing Manufacturing $1.3B $1.1B +27% 1.29% 1.54% 70% 25%
Other services Other services $15.2B $9.2B +66% 1.41% 1.38% 69% 23%
Hospitals Health care and social assistance $16.7B $9.9B +68% 1.26% 1.23% 78% 12%
Apparel and leather Manufacturing $0.3B $0.3B +10% 1.49% 1.22% 57% 21%
Textile mills Manufacturing $0.6B $0.3B +122% 0.48% 1.15% 71% 11%
Motion picture and sound recording Information $2.4B $1.8B +30% 1.27% 1.12% 52% 4%
Warehousing and storage Transportation and warehousing $2.2B $0.8B +183% 0.71% 1.10% 78% 18%
Chemical products Manufacturing $11.1B $8.0B +38% 1.03% 1.07% 78% 5%
Real estate (nonresidential) Real estate and leasing $21.1B $9.2B +129% 0.80% 1.07% 58% 17%
Performing arts and spectator sports Arts and recreation $3.2B $2.0B +58% 1.15% 0.95% 52% 9%
Air transportation Transportation and warehousing $3.1B $1.9B +61% 0.86% 0.88% 71% 10%
Machinery Manufacturing $3.9B $2.4B +62% 0.63% 0.85% 82% 9%
Other transportation equipment Manufacturing $3.6B $2.9B +25% 0.89% 0.81% 77% 10%
Pipeline transportation Transportation and warehousing $0.6B $1.2B -46% 2.62% 0.79% 59% 4%
Furniture Manufacturing $0.6B $0.5B +23% 0.70% 0.76% 82% 16%
Mining support activities Mining $0.8B $0.8B +1% 0.60% 0.74% 78% 4%
Paper products Manufacturing $1.5B $1.0B +47% 0.54% 0.69% 79% 8%
Legal services Professional and technical services $3.7B $3.7B -2% 1.14% 0.68% 63% 63%
Motor vehicle and parts dealers Retail trade $3.9B $1.3B +199% 0.43% 0.68% 61% 17%
Electrical equipment Manufacturing $1.2B $0.9B +37% 0.69% 0.59% 84% 8%
Truck transportation Transportation and warehousing $3.0B $1.5B +101% 0.45% 0.54% 68% 8%
Forestry and fishing Agriculture $0.4B $0.2B +81% 0.37% 0.51% 78% 5%
Social assistance Health care and social assistance $1.9B $1.1B +72% 0.56% 0.50% 66% 21%
Food, beverage, and tobacco Manufacturing $6.2B $3.5B +78% 0.36% 0.49% 73% 10%
Accommodation Accommodation and food services $1.9B $1.4B +33% 0.56% 0.49% 79% 11%
Ambulatory health care Health care and social assistance $8.1B $5.1B +59% 0.54% 0.47% 69% 10%
Plastics and rubber Manufacturing $1.3B $1.2B +11% 0.52% 0.46% 77% 7%
Food services and drinking places Accommodation and food services $6.5B $2.8B +132% 0.38% 0.45% 66% 16%
Nursing and residential care Health care and social assistance $1.5B $0.9B +71% 0.37% 0.40% 61% 10%
Wood products Manufacturing $0.6B $0.3B +116% 0.29% 0.39% 78% 7%
Motor vehicles and parts Manufacturing $3.0B $2.6B +15% 0.41% 0.38% 73% 4%
Primary metals Manufacturing $1.0B $0.6B +76% 0.25% 0.36% 74% 5%
Petroleum and coal products Manufacturing $1.9B $1.8B +3% 0.36% 0.32% 85% 6%
Fabricated metal products Manufacturing $1.5B $1.0B +42% 0.29% 0.32% 80% 5%
Nonmetallic mineral products Manufacturing $0.5B $0.4B +30% 0.34% 0.29% 69% 3%
Waste management Administrative and waste services $0.5B $0.4B +40% 0.40% 0.29% 76% 3%
Construction Construction $6.5B $4.0B +62% 0.29% 0.25% 74% 7%
Mining, except oil and gas Mining $0.4B $0.3B +20% 0.29% 0.24% 61% 1%
Transit and ground passenger Transportation and warehousing $0.4B $0.4B +3% 0.55% 0.19% 77% 6%
Oil and gas extraction Mining $0.5B $1.0B -46% 0.40% 0.12% 81% 0%
Farms Agriculture $0.1B $0.1B +140% 0.02% 0.03% 89% 0%

65 industries at the most detailed level where BEA publishes both fixed investment and gross output. Utilities, banks, insurance, wholesale trade, food and beverage manufacturing, and miscellaneous manufacturing combine two to four BEA fixed-asset industries to match the gross output line.

What this means for MSPs

For MSPs and IT service firms, the national accounts point to a few practical conclusions.

  • Benchmark clients against their own industry, not a single average. A 2.5% IT capital ratio is typical for the private economy, but a bank at 7.2% and a construction firm at 0.25% are both normal for their sectors. Use the sector table to frame budget conversations, and say clearly that it covers capital spending only.
  • Software is the budget, hardware is the spike. About 63 cents of every IT capital dollar goes to software, and prepackaged licenses are the fastest-growing part. License management, SaaS administration, and software security are where client money already goes. Hardware still moves in bursts: the 2025 jump in computer investment was the largest since 1963, so device and server lifecycle offers need room to scale up quickly.
  • A low capital ratio is not a low IT budget. Health care (0.73% of output), construction (0.25%), and accommodation and food services (0.46%) invest little capital in IT per dollar of output, and their ratios fell or barely moved over ten years. IT bought as a monthly service, which is how managed services are sold, never appears in these figures, so the capital data cannot show how much these sectors spend that way.
  • Finance is the growth market in the data. Finance and insurance IT investment grew 179% in ten years, faster than any other sector, and is 60% of that sector’s nonresidential capital spending. Banks, securities firms, and insurers are where IT capital spending has expanded most in this data.

Government agencies are outside these figures, which cover private industries only. For public-sector IT budgets, see our analysis of federal IT spending in 2026, built from contract obligations.

Frequently asked questions

Which industry spends the most on IT?

The information sector, which includes telecom carriers, software publishers, and data processing and hosting firms. It invested $411.8B in IT in 2025, equal to 14.3% of its gross output. Within it, data processing, hosting, and other information services reached 23.5%. Finance and insurance is second at $241.8B, or 5.5% of output.

What percentage of revenue do companies spend on IT?

Measured as capital investment in IT, U.S. private industries put 2.53% of gross output (BEA’s sales-based measure of production) into computers, software, and communications equipment in 2025. The ratio ranges from 0.08% in agriculture to 14.3% in information. Operating IT budgets, which add staff, services, and cloud subscriptions, are higher.

What is the average IT spend per employee?

In 2025, U.S. private industries invested about $9,452 in IT per full-time equivalent employee. That ranges from $152,914 in information and $36,541 in finance and insurance to $743 in accommodation and food services. These are capital figures and exclude IT staff pay and service contracts.

Which industries are increasing IT spending the fastest?

From 2015 to 2025, IT investment grew 179% in finance and insurance, 155% in information, and 147% in retail trade, against 121% for all private industries. Mining was the only sector where IT investment fell in dollars, down 18%.

Is software or hardware a bigger share of IT spending?

Software. It was 63% of private IT investment in 2025, up from 59% in 2015. The share peaked at 68.9% in 2023 and slipped in 2025 because spending on computers and peripherals jumped 56% in one year, to $270.9B.

Download the data. it-investment-by-industry-bea-1997-2025.csv (CSV). Licensed under CC BY 4.0: free to reuse with attribution to The Uptime Report.

Methodology

Sources. (1) BEA, Fixed Assets detailed estimates, “Investment in Private Nonresidential Fixed Assets” by industry and type of asset, current-cost file detailnonres_inv1.xlsx (updated September 30, 2026), annual 1901 to 2025. (2) BEA, GDP by Industry, Gross Output by Industry (Table TGO105, millions of current dollars; published September 30, 2026), annual 1997 to 2025. (3) BEA NIPA Table 6.5D, full-time equivalent employees by industry. All retrieved October 13, 2026.

Definitions. IT investment is the sum of computers and peripheral equipment (BEA asset codes EP1A to EP1H: mainframes, PCs, direct access storage, printers, terminals, tape drives, storage devices, and system integrators), software (ENS1 prepackaged, ENS2 custom, ENS3 own-account), and communications equipment (EP20). It excludes other information processing equipment such as medical and nonmedical instruments, photocopiers, and office equipment, and it excludes research and development. IT intensity is IT investment divided by the matching gross output line, both in current dollars. Ten-year growth compares 2015 and 2025 in current dollars, not adjusted for prices; computer prices generally fall over time, so real hardware growth is likely higher than the nominal figures shown.

Industry matching. Each of BEA’s 74 fixed-asset industries was mapped to its gross output line, giving 65 detailed industries and 19 sectors. Real estate uses the “other real estate” gross output line, which excludes housing, because the investment data cover nonresidential assets only. Sector totals for real estate and leasing combine the other real estate and rental and leasing lines.

Checks. Summed across all industries, our 2025 software total is $751.3B against $751.3B for software in NIPA private fixed investment (series B985RC), and communications equipment is $169.9B against $170.0B (C275RC). Computers and peripherals sum to $270.9B, 3.3% below the NIPA aggregate of $280.2B (B935RC), a gap of similar size in earlier years (4.5% in 2015).

Limitations. BEA warns that its detailed industry-by-asset estimates are less reliable than the published aggregates and are more likely to rest on judgmental trends or on trends in the higher-level aggregate. Assets are classified by owner, so leased equipment appears with the lessor and cloud capacity appears with the provider. Private industries include nonprofit institutions in industries such as hospitals and education; government is excluded. The ratio to gross output is a proxy for IT capital spending as a share of revenue, not a measure of total IT budgets.

Not advice. This is an analysis of public economic data, not a budgeting recommendation for any organization.

Cite as:The Uptime Report. "IT Spending by Industry: Business IT Investment Reached $1.19 Trillion in 2025, and Finance Grew It Fastest." October 2026. https://theuptimereport.com/it-spending-by-industry/

References

  1. BEA, Detailed Data for Fixed Assets and Consumer Durable Goods (nonresidential detailed estimates, investment). Accessed October 2026.
  2. BEA, Investment in Private Nonresidential Fixed Assets by industry and type of asset, current cost (XLSX). Accessed October 2026.
  3. BEA, Gross Output by Industry and GrossOutput.xlsx. Accessed October 2026.
  4. BEA Glossary, Gross output (GO). Accessed October 2026.
  5. BEA, NIPA annual data flat file (series B935RC, B985RC, C275RC, and Table 6.5D full-time equivalent employees). Accessed October 2026.
  6. BEA, Fixed Assets and Consumer Durable Goods in the United States, methodology (ownership basis and leased assets). Accessed October 2026.
  7. Avasant, IT Spending as a Percentage of Revenue by Industry, Company Size, and Region (definition of the operating-budget ratio). Accessed October 2026.

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