Worldwide IT spending is forecast to reach $5.43 trillion in 2025, marking a 7.9 percent increase from 2024, according to Gartner report.
Despite a slowdown in net-new investments driven by heightened geopolitical and economic uncertainty, spending momentum is sustained by AI-driven transformation, particularly in data center infrastructure.
Spending on Data Center Systems will rise significantly from $333.4 billion in 2024 to $474.9 billion in 2025, marking a 42.4 percent growth, following a similarly strong 40.3 percent increase in the previous year.
Devices spending will grow from $720.7 billion to $759.6 billion, up 5.4 percent in 2025, improving slightly from the 4.6 percent growth seen in 2024. Software spending will increase from $1.11 trillion to $1.23 trillion, representing a 10.5 percent rise, slightly below the 11.9 percent growth recorded in 2024.
IT Services will grow from $1.61 trillion to $1.69 trillion, posting a 4.4 percent growth rate, slightly lower than the 4.8 percent rise in 2024.
Communications Services will see a marginal increase from $1.26 trillion to $1.28 trillion, growing by 2.1 percent in 2025 compared to 2.2 percent in the prior year.
The projected growth in worldwide IT spending in 2025 will benefit a wide range of technology vendors across different segments. In the Data Center Systems segment, companies like Dell Technologies, Hewlett Packard Enterprise (HPE), Cisco, and Lenovo are expected to gain from strong enterprise investments in server, storage, and networking infrastructure. Hyperscalers such as Amazon Web Services, Microsoft Azure, and Google Cloud will also continue to expand their infrastructure, further boosting demand for data center hardware.
In the Devices segment, PC and device manufacturers such as Apple, HP, Dell, and Lenovo stand to benefit from increased spending driven by enterprise refresh cycles and growing demand for hybrid work setups. Microsoft will also gain from Windows 11-driven device upgrades in the enterprise space.
For Software, vendors like Microsoft, SAP, Oracle, Salesforce, Adobe, and ServiceNow are well-positioned to capitalize on rising enterprise investments in cloud-based applications, AI tools, productivity platforms, and digital transformation initiatives. Security software vendors such as Palo Alto Networks, CrowdStrike, and Fortinet are also expected to benefit from continued cybersecurity concerns.
In the IT Services space, large global system integrators and service providers such as Accenture, Tata Consultancy Services (TCS), Infosys, Wipro, IBM, and Cognizant are set to benefit as enterprises ramp up digital transformation, AI implementation, and managed services engagements.
AI and generative AI (GenAI) initiatives are reshaping IT budgets, even as organizations navigate what Gartner calls an “uncertainty pause.” While growth in software and IT services spending will moderate to 10.5 percent and 4.4 percent respectively, investment in data center systems is set to surge by 42.4 percent in 2025. Spending on AI-optimized servers — negligible just four years ago — is projected to triple that of traditional servers by 2027.
“CIOs are increasingly directing funds towards AI infrastructure rather than exploratory GenAI use cases,” said Gartner analyst John-David Lovelock. “Enterprises are choosing simplicity, seeking plug-and-play GenAI functionality from incumbent vendors rather than building capabilities in-house.”
According to a Gartner survey of senior executives in North America and Western Europe, 62 percent view AI as central to their competitive strategy over the next decade. However, only 24 percent expect to end 2025 ahead of plan, despite 61 percent having started the year in a stronger position than in 2024. This signals a growing caution among business leaders.
The “uncertainty pause” that emerged in Q2 2025 reflects strategic delays in new IT investments—not budget cuts. Economic (41 percent) and geopolitical (32 percent) volatility remain the top risks cited by business leaders, while customer pressure and regulatory demands are seen as more manageable.
Meanwhile, recurring IT spending in areas like cloud and managed services continues to provide a layer of stability. Device spending is expected to rise by 5.4 percent, while communication services will grow marginally by 2.1 percent in 2025.
Despite headwinds, the IT sector is being reshaped by long-term bets on GenAI infrastructure and automation. Enterprises are optimizing around competitive advantage, not just operational efficiency — setting the tone for cautious, AI-centric growth.
Rajani Baburajan
