The economies of North America and Europe continue to deliver mixed signals. Some indicators are improving, while others point to contraction. Growth in both regions has slowed to around 1%, yet the global IT market remains an outlier, with analysts projecting growth of 7% to 10% this year. According to the 2025 Channelnomics Channel Forecast report, partners expect their revenue to rise between 10% and 14%.
IT spending — driven primarily by investments in artificial intelligence — is fueling partner optimism and leading to strong reinvestment in business development. The Q3 Channelnomics Partner Confidence Index (PCI) report shows that 85% of North American solution providers, and 90% of those in Europe, are reinvesting in their companies.
The average reinvestment rate across both regions is 26%, a substantial increase over the historical range of 16% to 20%. Industry experts typically recommend allocating at least 20% of net revenue toward staying competitive, expanding capabilities, and meeting evolving customer needs.
While the majority of partners remain confident and continue to invest in their businesses, the reinvestment rates have slipped slightly in both regions. Economic uncertainty — particularly concerns about a potential downturn and the impact of American tariffs — is weighing on partner sentiment.
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