IT spending will increase by nearly 32 percent annually until 2029, predicts IDC Research. This is due to the increasing use of AI.
IDC Research has prepared a new report predicting that global IT spending will grow by nearly 32 percent annually between 2025 and 2029. Agentic AI will play a major role in this, accounting for $1.3 trillion in 2029.
Loss of Market Share Due to Ignoring AI Agents
IDC expects a massive shift in corporate IT budgets in the coming years. Spending on agentic AI will take the largest chunk of the IT budget. The research firm states that hyperscalers will bear 80 percent of global IT spending. They do this to cover the infrastructure costs for growing AI workloads. Part of this spending will be allocated to AI-powered applications and agentic AI platforms used to develop new apps.
“An important nuance is that AI spending is linked to tech leaders’ confidence that AI can drive business success in the future,” says Rick Villars of IDC. “Developers who do not integrate AI into their products or expand them with AI agents, or do so too late, risk losing market share to companies that have chosen to do so.”
If AI spending indeed rises so rapidly, there will be a need for much greater computing capacity than is currently available. This means that data center providers will need to quickly implement extreme expansions.
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