Gartner predicts worldwide IT spending will grow by 9.8% in 2025

CIOs should focus budget increases on price adjustments to recurring expenses

Global IT spending is expected to total US$5.61 trillion in 2025, up 9.81 trillion from 2024, according to the latest forecast from the Gartner, Inc.

“While CIO budgets are increasing, a significant portion will only offset price increases in recurring expenses,” he says. John-David Lovelock, vice president and analyst at Gartner. “This means that by 2025, nominal versus real IT spending will be distorted, with price increases absorbing some or all of the budget growth. All major categories are reflecting higher-than-expected prices, leading CIOs to delay and reduce their true budget expectations.”

Generative Artificial Intelligence will influence IT spending, but it won't be with GenAI itself:

Segments that include systems of Data Center, devices and software will experience double-digit growth by 2025, largely due to hardware upgrades Generative Artificial Intelligence (GenAI). However, these updated segments will still not differentiate in terms of functionality, even with new hardware.

Global IT Spending Forecast (Millions of US Dollars)

Source: Gartner (January 2025)

“Generative Artificial Intelligence is moving towards Valley of Disillusionment, which reflects CIOs’ declining expectations for GenAI, but not their spending on the technology,” Lovelock adds. For example, new AI-enabled PCs do not yet have “must-have” applications that utilize the hardware. While both consumers and businesses will buy AI-enabled PCs, tablets and mobile phones, those purchases will not be greatly influenced by GenAI functionality.”

Spending on AI-optimized servers will easily double spending on traditional servers by 2025, reaching $1.4T202 billion.

“IT services companies and hyperscalers will account for over $701,000 of spending in 2025,” Lovelock said. “By 2028, hyperscalers will operate $1,400,000 worth of AI-optimized servers, but not in their traditional business model or in the Infrastructure as a Service (IaaS) market. Hyperscalers are adapting to be part of the oligopolistic market for AI models.”

Gartner’s IT spending forecasting methodology relies heavily on rigorous analysis of sales by more than 1,000 vendors across the full range of IT products and services. Gartner uses primary research techniques, supplemented by secondary research sources, to create a comprehensive baseline of market size on which to base its forecasts.

Gartner’s quarterly IT Spending Forecast provides a unique perspective on 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, 4Q24 Update”.

More information about the forecast can be found in Gartner's free webinar “IT Spending Forecast, 4Q24 Update: GenAI's Impact on a $7 Trillion IT Market”.

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