Select Page
Share

Forecast indicates exponential increase in server sales, driven by spending with Generative Artificial Intelligence (GenAI)

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

“Current expenditure on Generative Artificial Intelligence “GenAI has been predominantly driven by technology companies that are building the infrastructure needed to deliver GenAI,” said John-David Lovelock, vice president and analyst at Gartner. “CIOs will start spending on GenAI beyond proof of concept starting in 2025. More money will be invested, but CIOs’ expectations of GenAI’s capabilities will decline. The reality of what can be achieved with current models of GenAI 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 billion in 2024. While the same growth is not expected in 2025, the segment is expected to grow nearly $50 billion next year. This impressive growth is driven by server sales, which are expected to nearly triple from more than $134 billion in 2023 to $332 billion by 2028 – including more than $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

Source: Gartner (October 2024)

“GenAI will easily surpass the impact that cloud and outsourcing vendors have had on data center systems in recent years,” says Lovelock. “It took 20 years for cloud and outsourcing vendors to reach $1.4T 67 billion per year in server costs. 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, up from 5.6% in 2024.

“IT software and services are big drivers of IT growth,” says Lovelock. “Spending in these segments is expected to be 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 $6.6 billion to global spending in 2024 and $7.4 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 1,000 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.

About Gartner for High Tech 

Gartner for High Tech helps technology leaders and their teams with role-based best practices, industry insights, and strategic insights into emerging trends and market shifts to achieve their critical priorities and build the successful companies of tomorrow. For more information, visit: www.gartner.com/en/industries/high-tech.   

About Gartner

Gartner, Inc. delivers objective, actionable insights that drive smarter decisions and better performance for enterprises’ mission-critical priorities. To learn more, visit www.gartner.com or follow Gartner news and updates for IT executives using #GartnerIT.

quick access

en_USEN