The IT spending in Europe is forecasted to increase from $1.18 trillion in 2024 to $1.28 trillion in 2025, with a growth rate moving up from 6.8 percent in 2024 to 8.7 percent in 2025, according to Gartner.
The demand for AI infrastructure is driving substantial growth in data center systems, with spending projected to grow by 11.1 percent in 2024 and continue increasing in 2025.
End-user spending on AI-optimized servers will increase 25 percent in 2024 and continue at a slower rate in 2025, reflecting Europe’s ongoing commitment to building AI infrastructure.
CIOs in Europe are expected to focus on public cloud services, with spending reaching $123 billion in 2024, while security spending will increase to $47 billion.
The adoption of GenAI is shaping spending priorities. In 2025, more companies will shift from developing in-house GenAI solutions to purchasing partner solutions, spurred by limited success in initial proof-of-concept initiatives in 2024.
Spending on data center systems is set to grow from $50.0 billion in 2024 to $54.4 billion in 2025, representing growth rates of 11.1 percent in 2024 and 8.7 percent in 2025.
Spending on devices, which includes hardware like computers and smartphones, will grow from $134.2 billion in 2024 to $146.7 billion in 2025.
Software spending is projected to see the highest increase, growing by 11.4 percent in 2024 and accelerating further to 13.2 percent in 2025, reaching $288.2 billion.
IT services will grow from $448.6 billion in 2024 to $489.8 billion in 2025, with growth rates improving from 6.6 percent in 2024 to 9.2 percent in 2025.
Spending on Communications Services is projected to grow from $292.3 billion in 2024 to $302.7 billion in 2025, with growth rates of 3.0 percent and 3.6 percent.
