According to research firm Gartner, IT spending will increase 9.8 percent by 2025
Global IT spending is expected to reach $5.61 trillion in 2025, up 9.8 percent from 2024. According to research firm Gartner, much of the budget increases will go toward price increases in recurring costs.
Impact of generative AI on IT spending
Gartner predicts that all major IT sectors will face higher prices by 2025. This will force CIOs to adjust budgets and reconsider planned spending. The data center systems, devices and software segments will see double-digit growth, mainly due to investments in hardware capable of generative AI (GenAI). However, the new hardware will not yet offer significant functional improvements.
AI-optimized servers are gaining market share. Gartner expects spending on these servers to double by 2025 compared to traditional servers, totaling $202 billion. At the same time, IT services and hyperscalers will account for more than 70 percent of total IT spending. According to Gartner, hyperscalers will manage AI-optimized servers totaling $1 trillion by 2028. This is happening outside of their traditional business models and infrastructure services.
Expectations for AI hardware
Gartner states that while AI-compatible devices, such as PCs, tablets and smartphones, will be sold by 2025, GenAI functionalities will not yet be decisive in purchasing decisions. According to the research firm, generative AI technologies are currently in a phase of diminishing expectations. CIOs see the potential, but are adjusting their investments based on the actual value the technology can deliver in the near term.
Gartner’s predictions are based on a comprehensive analysis of sales data from more than a thousand vendors across IT sectors. The next update of the IT spending forecast will be presented at the Gartner IT Symposium/Xpo, where broader IT trends such as AI, cybersecurity and digital transformation will also be discussed.