Global IT spending is projected to grow 7.0 percent in 2025, reaching US$5.35 trillion, according to the latest Canalys (now part of Omdia) forecast.
While slightly below the earlier estimate of 8.3 percent, this revised growth outlook remains above the long-term average of 5.4 percent and reflects the IT sector’s resilience amid ongoing geopolitical tensions, trade uncertainties, and a downgraded global GDP forecast of 2.2 percent, Matthew Ball at Canalys said in the report.
The largest share of this spending will go to IT services, expected to hit US$1,691 billion with a growth rate of 6.2 percent. Telecommunications services will follow at US$1,320 billion, growing at 5.4 percent. Software is set to reach US$1,073 billion with a 4.4 percent increase, while infrastructure is forecast to grow the fastest among major segments at 17.6 percent, totaling US$580 billion.
Spending on client devices, imaging, and printing is expected to reach US$359 billion with 8.3 percent growth, and components and peripherals will see a 7.8 percent rise to US$170 billion. Cybersecurity remains a strong growth area with a 9.1 percent increase to US$95 billion, and unified communications will grow more modestly at 3.3 percent to US$62 billion.
Growth drivers
The primary driver behind this expansion is a multi-year AI investment cycle that is transforming IT priorities across infrastructure, applications, and services. Data center capital expenditures are expected to surge 25.8 percent to US$598 billion in 2025, with server investments alone rising 33.5 percent. Demand for high-performance computing to support AI training and inference is pushing hyperscalers and enterprises to modernize infrastructure and expand capacity. Data center Capex will be approaching US$1 trillion by 2030.
Cloud infrastructure services will grow 23.9 percent this year, supported by renewed customer investments and a shift from earlier cost-cutting cycles. Spending on cybersecurity technology will increase 9.1 percent, with particular emphasis on identity, risk, and AI-enhanced defenses. Meanwhile, managed IT services are expected to grow 12.6 percent, surpassing US$600 billion, driven by demand for AI-enabled automation and multi-cloud management.
Cloud application software will grow 22.3 percent, bolstered by customer migration to SaaS and the emergence of agentic AI models, which are creating new opportunities for implementation and optimization.
Despite near-term economic pressures and softening partner sentiment, Canalys expects partner-delivered IT to grow 5.5 percent in 2025. While partners missed the initial data center-centric phase of AI investment, upcoming demand in edge computing, secure AI adoption, and business transformation is set to unlock future growth. Vendors are increasing support for partners through programmatic investments to build capabilities for the next wave of innovation.
Channel partners
Channel partners are expected to play a crucial role in IT spending growth in 2025, despite facing challenges from economic uncertainty, trade disruptions, and potential supply chain issues. According to Canalys (now part of Omdia), partner-delivered IT is forecast to grow by 5.5 percent in 2025 — an improvement over 2024 and previous years, though still below earlier projections.
While partner sentiment weakened in early 2025 due to concerns over tariffs and an economic slowdown, most partners still anticipate growth. Hardware categories like client computing, networking, firewall appliances, and servers will see cyclical increases, largely driven by installed base refresh cycles.
Sustained growth for partners will come from key areas including:
Cybersecurity: Projected to grow 9.1 percent, with 90 percent of spending routed through partners. Priority areas include SIEM, identity and cloud security, and AI-driven solutions.
Managed IT Services: Expected to grow 12.6 percent to over US$600 billion, fueled by automation, MDR, compliance needs, and hybrid-cloud management.
Cloud Application Software: Forecasted 22.3 percent growth, driven by SaaS migration and demand for AI-enhanced solutions.
Although partners’ share of the total addressable IT market is projected to decline to 70 percent in 2025, they will remain influential across all regions and categories. As the next phase of AI-driven investment focuses on edge computing and secure AI deployment, vendors are ramping up support for partner enablement to unlock future growth opportunities.
InfotechLead.com News Desk
