Gartner predicts worldwide IT spending will grow 9.31T3T by 2025

Global IT spending is expected to total US$5.74 trillion in 2025, an increase of US$9.31 trillion compared to 2024, according to the latest forecast from the Gartner, Inc.

“Current expenditure on Generative Artificial Intelligence (GenAI) have been predominantly done by technology companies that are building the infrastructure needed to offer GenAI,” he says John-David Lovelock, Vice President and Analyst at Gartner. “CIOs (Chief Information Officers) will begin spending on GenAI, going beyond proof-of-concepts, starting in 2025. More money will be invested, but CIOs' expectations for GenAI's capabilities will decline. The reality of what can be achieved with current models of this technology and the state of CIOs' data will not meet today's high expectations.

Server sales continue to drive the Data Center segment

Data center systems spending grew nearly $351,000 in 2024. While a similar surge isn't expected in 2025, the segment is expected to grow nearly $50 billion next year. This significant growth is driven by server sales, which are expected to nearly triple, from over $134 billion in 2023 to $332 billion by 2028—including over $257 billion estimated for 2025.

Global IT Spending Forecast (in millions of US dollars)

"GenAI will easily surpass the impact that cloud and outsourcing vendors had on data center systems in previous years," says Lovelock. "It took 20 years for cloud and outsourcing vendors to reach $1.4 trillion in server costs annually. 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 grow by 14% to reach US$1.23 trillion in 2025, up from the 11.7% growth estimated for 2024. Meanwhile, IT services are expected to grow by 9.4% to reach US$1.73 trillion in 2025, representing an increase of 5.6% in 2024.

"IT software and services are major drivers of IT growth," says Lovelock. "Spending in these segments is expected to focus on AI-related projects, including email and content creation. This is a market that, despite its age and consolidation among a small number of players, will add $1.4 billion to global spending in 2024 and $1.4 billion in 2025, in part due to products and services with Generative Artificial Intelligence.”

Gartner predicts that $1.5 trillion will be added to spending each year at growth rates. With this in mind, global IT spending is expected to surpass $1.7 trillion by 2028.

Gartner's IT spending forecasting methodology relies heavily on rigorous analysis of sales from more than a thousand vendors across the full range of IT products and services. Gartner uses primary research techniques, supplemented by secondary research sources, to build a comprehensive database of market size information on which to base its forecasts.

Gartner's quarterly forecast provides a unique perspective on worldwide IT spending across hardware, software, IT services, and telecommunications. These reports help Gartner clients understand market opportunities and challenges. The latest IT spending forecast research is available to Gartner clients at “Gartner Market Databook, 3Q24 Update.”

Learn more in the free Gartner webinar IT Spending Forecast, 3Q24 Update: 2025, The Trough is Coming.