Global IT Spending Set to Reach $5.06 Trillion in 2024, Gartner Forecasts

Global IT spending is anticipated to hit $5.06 trillion in 2024, reflecting an 8 percent growth from the previous year.
Gartner report on IT spending for 2024This uptick, exceeding the previous quarter’s forecast of 6.8 percent growth, positions worldwide IT spending on a trajectory to surpass $8 trillion well ahead of the decade’s end, Gartner said in its report today.

The size of the data center market will be $259.68 billion in 2024 vs $236.17 billion in 2023.

The devices market will be touching $687.94 billion in 2024 from $664.028 billion in 2023.

The software market will be $1042.174 billion in 2024 from $914.689 billion in 2023.

The size of IT services market will be $1519.92 billion in 2024 from $1385.12 billion in 2023.

Communications services market will grow to $1551.288 billion in 2024 from $1487.161 billion in 2023.

A notable surge is expected in data center systems investment, projected to spike by 10 percent in 2024, compared to a 4 percent increase in 2023. This surge is attributed to preparations for the integration of generative AI (GenAI).

John-David Lovelock, Distinguished VP Analyst at Gartner, highlighted the momentum in IT services, poised to escalate by 9.7 percent and surpass $1.52 trillion, potentially becoming the largest market segment tracked by Gartner.

John-David Lovelock has emphasized a significant shift in enterprise strategies, with a growing preference for outsourcing IT services due to challenges in talent acquisition. He noted that consulting spend is overtaking internal staffing investments, marking a pivotal shift in industry trends.

John-David Lovelock described a pattern of narrative, planning, and execution concerning GenAI adoption, with enterprises transitioning from storytelling in 2023 to active planning in 2024, leading to anticipated execution in 2025.

Furthermore, John-David Lovelock emphasized the proactive stance of technology providers, already incorporating GenAI capabilities into existing products and services to cater to enterprise demands.

He highlighted a frenzy of spending among service providers supporting large-scale GenAI projects, particularly in markets such as servers and semiconductors. John-David Lovelock forecasted that AI servers would encompass nearly 60 percent of hyperscalers’ total server expenditure in 2024.

The forecast also indicates a rebound in device spending, with an expected growth rate of 3.6 percent in 2024, reaching $688 billion. This resurgence is attributed to a shrinking lifespan of mobile phones, prompting consumers and enterprises to replace devices earlier. The integration of GenAI features in both premium and basic phones is identified as a contributing factor to this resurgence.

Gartner’s IT spending forecast methodology relies on comprehensive analysis of sales data from over a thousand vendors across various IT products and services. Primary research techniques, supplemented by secondary sources, inform Gartner’s database, forming the basis of its forecasts. News Desk

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