Global IT spending is expected to total $5.74 trillion in 2025, up 9.3% from 2024, according to the latest forecast from theGartner, Inc.
“Current expenditure onGenerative Artificial Intelligence(GenAI) have been predominantly done by technology companies that are building the infrastructure needed to deliver GenAI,” he saysJohn-David LovelockVice President and Analyst at Gartner. "The CIOs (Chief Information OfficersThey will start spending on GenAI, going beyond proof of concepts, from 2025. More money will be invested, but the expectations CIOs have about GenAI capabilities will decrease. The reality of what can be achieved with current models of this technology and the state of CIO data will not meet today's high expectations.
Server sales continue to drive the Data Center segment
Data Center system expenses grew by nearly 35% in 2024. Although an equal jump is not expected in 2025, the segment is expected to grow by nearly US$ 50 billion next year. This significant growth is driven by server sales, which are expected to nearly triple, increasing from over US$ 134 billion in 2023 to US$ 332 billion by 2028 – including more than US$ 257 billion estimated for 2025.
Global IT Spending Forecast (in millions of US dollars)
| Expenses in 2024 | Growth 2024 (%) | Expenses in 2025 | Growth 2025 (%) | |
| Data Center | 318.008 | 34,7 | 367.171 | 15,5 |
| Devices | 735.764 | 6,2 | 805.722 | 9,5 |
| Software | 1.087.800 | 11,7 | 1.239.779 | 14,0 |
| IT Services | 1.587.913 | 5,6 | 1.737.754 | 9,4 |
| Telecommunication services | 1.530.299 | 2,0 | 1.596.890 | 4,4 |
| IT Results | 5.259.784 | 7,2 | 5.747.317 | 9,3 |
"GenAI will easily surpass the effects that cloud and outsourcing providers had in previous years regarding data center systems," says Lovelock. It took 20 years for cloud and outsourcing providers to reach $67 billion per year in servers. The demand for GenAI will help nearly triple server sales from 2023 to 2028.
Software and IT services will drive growth
Software spending is expected to increase by 14%, reaching US$ 1.23 trillion in 2025, above the estimated 11.7% growth for 2024. Meanwhile, IT services are expected to grow by 9.4%, reaching $1.73 trillion in 2025, representing a 5.6% increase in 2024.
"Software and IT services are major drivers of IT growth," says Lovelock. It is expected that spending in these segments will be on projects related to AI, including email and content creation. This is a market that, despite its age and being consolidated among a small number of participants, will add $6.6 billion to global spending in 2024 and $7.4 billion in 2025, partly due to products and services withGenerative Artificial Intelligence.”
“Gartner predicts that $500 billion will be added to spending each year at growth rates. With this in mind, global IT spending is expected to surpass the $7 trillion mark by 2028.”
Gartner's IT spending forecast methodology is heavily based on the rigorous analysis of sales from over a thousand vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database with market size information on which it bases its forecasts.
Gartner's quarterly forecast provides a unique perspective on global IT spending in the segments of hardware, software, IT services, and telecommunications. These reports help Gartner clients understand market opportunities and challenges. The latest research on IT spending forecasts is available to Gartner clients in“Gartner Market Databook, 3Q24 Update.”
Learn more in the free Gartner webinarIT Spending Forecast, 3Q24 Update: 2025, The Trough is Coming.
