Worldwide IT spending is projected to reach $5.74 trillion by 2025, marking a 9.3 percent increase from 2024, Gartner report said.
While current GenAI spending is driven by technology companies building infrastructure, CIOs will start to invest more in GenAI beyond proof-of-concept projects starting in 2025. However, expectations for GenAI’s capabilities are expected to decrease as the limits of current models become clear.
Data center systems spending grew by 34.7 percent in 2024 and is expected to rise by another 15.5 percent in 2025, driven largely by server sales. Server spending is expected to nearly triple between 2023 and 2028, reaching over $257 billion by 2025.
Software spending will grow by 14 percent to $1.23 trillion in 2025, while IT services will rise by 9.4 percent to $1.73 trillion. Growth in these sectors is largely driven by AI-related projects.
Spending on communication services will grow at 4.4 percent in 2025, reaching $1.59 trillion.
Gartner predicts that IT spending will add $500 billion each year, crossing the $7 trillion mark by 2028. The demand for GenAI is expected to be a major growth driver, especially in the data center systems market.
Worldwide IT spending Forecast for 2024 and 2025:
IT Growth:
2024: $5.26 trillion (7.2% growth)
2025: $5.74 trillion (9.3% growth)
Observation: The overall IT market is projected to grow steadily, with an accelerated growth rate in 2025 compared to 2024. The jump to 9.3% indicates a surge in IT investments across sectors, possibly driven by emerging technologies like Generative AI (GenAI).
Data Center Systems:
2024: $318 billion (34.7% growth)
2025: $367 billion (15.5% growth)
While growth slows in 2025, data center systems are still seeing robust expansion due to increased server sales, largely attributed to the demands of GenAI. The 34.7% growth in 2024 highlights a significant leap in infrastructure spending.
Devices:
2024: $735 billion (6.2% growth)
2025: $805 billion (9.5% growth)
Device spending is set to pick up pace in 2025, growing by 9.5% compared to 6.2% in 2024. This could be due to the increased demand for consumer electronics and enterprise devices as digital transformation initiatives expand.
Software:
2024: $1.09 trillion (11.7% growth)
2025: $1.24 trillion (14.0% growth)
Software remains a key driver of IT spending, showing strong growth in both years. The increase in growth rate from 11.7% in 2024 to 14.0% in 2025 reflects increased investments in AI-related software, automation tools, and enterprise solutions.
IT Services:
2024: $1.58 trillion (5.6% growth)
2025: $1.73 trillion (9.4% growth)
IT services are experiencing significant growth, with an expected surge in 2025. This growth will likely be driven by increased demand for cloud services, AI-driven solutions, and IT support systems.
Communication Services:
2024: $1.53 trillion (2.0% growth)
2025: $1.59 trillion (4.4% growth)
While communication services are growing at a slower rate compared to other IT sectors, the growth accelerates in 2025. This could be driven by increasing investments in 5G networks, telecom services, and global connectivity.
