Gartner's IT Spending Forecast for 2025
Worldwide IT spending is set to reach a staggering $5.74 trillion by 2025, marking an impressive growth of 9.3% compared to the previous year. This forecast has been provided by Gartner, Inc., a respected authority in the technology research industry.
The Rise of Generative AI:
According to John-David Lovelock, a distinguished VP Analyst at Gartner, the current surge in spending on generative AI (GenAI) primarily originates from technology companies enhancing the supply-side infrastructure to support GenAI. "CIOs are expected to expand their budgets for GenAI beyond initial proof-of-concept projects starting in 2025," Lovelock noted. Despite increased spending, expectations for GenAI's capabilities may adjust downward as reality checks come into play regarding the existing data states and what GenAI technologies can objectively deliver.
Trends Influencing IT Growth:
At the Gartner IT Symposium/Xpo, analysts are sharing insights on the various trends shaping the IT marketplace during this transformative period. One of the most significant areas of growth forecasted is the data center systems segment, where spending grew nearly 35% in 2024. Although growth will moderate, it's still projected to increase by almost $50 billion in 2025, largely driven by server sales.
Server Sales Projection
The server sales segment is expected to experience remarkable growth, rising from over $134 billion in 2023 to an anticipated $332 billion by 2028, with $257 billion of that set for 2025 alone. Lovelock predicts, "GenAI will far surpass the trajectory set by cloud and outsourcing vendors over the last couple of decades, tripling server sales in the coming years."
Software and IT Services Growth:
Looking towards 2025, software spending is predicted to increase by 14%, reaching $1.23 billion, an acceleration from 11.7% growth in 2024. Meanwhile, IT services are forecasted to grow 9.4% to $1.73 billion. As Lovelock explains, "These sectors are poised to lead growth within IT, heavily influenced by spending related to AI projects, including initiatives focused on email applications and authoring tools. In fact, despite the consolidation of players in these markets, they will contribute $6.6 billion to overall spending in 2024 and $7.4 billion in 2025 due to GenAI products and offerings."
Future IT Spending Outlook:
Gartner anticipates that an additional $500 billion could be injected into IT spending each year, paving the way for IT expenditures to surpass $7 trillion by 2028. The organization yields its forecast using a thorough analysis of sales data from over a thousand vendors across a vast spectrum of IT products and services, employing both primary and secondary research methodologies.
Understanding Market Dynamics
The quarterly IT spending forecast provided by Gartner offers invaluable perspectives for stakeholders and investors interested in the dynamics of hardware, software, IT services, and telecommunications. Gartner’s reports enable companies to recognize unique market opportunities and prepare for potential challenges effectively.
About Gartner IT Symposium/Xpo
The Gartner IT Symposium/Xpo is a premier gathering focused on equipping CIOs and IT executives with cutting-edge knowledge on how technology, insights, and trends converge to affect the future landscape of IT and business. This annual event draws participation from numerous leading professionals within the field.
Additional Information about Gartner
Gartner, Inc. (NYSE: IT) specializes in providing actionable, unbiased insights to executives and their teams, enabling them to make informed decisions and enhance organizational performance. For further details, explore gartner.com.
Frequently Asked Questions
What are Gartner's predictions for IT spending in 2025?
Gartner forecasts that worldwide IT spending will rise to $5.74 trillion in 2025, reflecting a 9.3% increase from 2024.
Which technology segments are driving this growth?
Major contributors to growth include data center systems, software, and IT services, with generative AI (GenAI) playing a pivotal role in spending trends.
How much are server sales expected to grow?
Server sales are projected to increase dramatically, with growth to $257 billion anticipated in 2025, driven largely by demand from GenAI.
What year is expected to see IT spending surpass $7 trillion?
According to Gartner, IT spending is expected to exceed $7 trillion by the year 2028.
How does Gartner gather data for its forecasts?
Gartner relies on detailed analysis from over a thousand vendors, utilizing both primary and secondary research methods to ensure accurate market size data.
