Global spending on information technology (IT) is expected to reach $5.61 trillion by 2025, representing an increase of 9.8% over 2024, according to the latest report from Gartner, Inc. This growth reflects both the impact of inflation and investment in emerging technologies, although a significant portion of IT budgets will be allocated to offset price increases in recurring areas.
The Influence of Generative AI on the IT Market
Generative artificial intelligence (GenAI) is reshaping key segments, such as data center systems, devices, and software, which are expected to see double-digit growth. However, Gartner notes that this spending is not focused on GenAI as a standalone technology, but rather on hardware upgrades and solutions that will eventually support it.
For example, AI-optimized servers will double their spending compared to traditional servers by 2025, reaching $202 billion. Meanwhile, AI-enabled PCs, tablets, and phones have yet to provide must-have applications that justify mass adoption based solely on this functionality.
John-David Lovelock, distinguished vice president and analyst at Gartner, stated: “While GenAI continues to generate moderate expectations, CIOs are investing in infrastructure that will ensure its long-term adoption.”
Segment Projections
According to the report, the IT sectors with the highest growth in 2025 include:
| Segment | 2024 Spending (Million $) | 2024 Growth (%) | 2025 Spending (Million $) | 2025 Growth (%) |
|---|---|---|---|---|
| Data Systems | 329,132 | 39.4 | 405,505 | 23.2 |
| Devices | 734,162 | 6.0 | 810,234 | 10.4 |
| Software | 1,091,569 | 12.0 | 1,246,842 | 14.2 |
| IT Services | 1,588,121 | 5.6 | 1,731,467 | 9.0 |
| Communication Services | 1,371,787 | 2.3 | 1,423,746 | 3.8 |
| Total IT | 5,114,771 | 7.7 | 5,617,795 | 9.8 |
Changes in Business Models
Gartner predicts that hyperscalers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, will account for more than 70% of spending on AI-optimized servers by 2025. However, these companies are reconfiguring their traditional business models to operate in a market more focused on AI, partially setting aside the exclusive focus on Infrastructure as a Service (IaaS).
Additionally, hyperscalers are expected to manage $1 trillion in AI-optimized servers by 2028, solidifying their position in an oligopolistic AI services market.
Challenges and Opportunities
Although IT spending shows solid growth, Gartner warns of significant challenges:
- Impact of Inflation: Much of the increase in budgets will be allocated to cover operational costs rather than new investments.
- Lag in GenAI Adoption: Despite expectations, AI-enabled devices are still not delivering groundbreaking functionalities.
- Dependence on Hyperscalers: Companies will need to consider strategies to diversify their technological infrastructure.
On the other hand, advancements in software, devices, and data centers are accelerating digital transformation, creating new opportunities in data analytics, cybersecurityCybersecurity solutions are essential in the digital age…, and business automation.
Key Events for CIOs
To stay updated on trends and challenges, Gartner will host the IT Symposium/Xpo 2025 in various global cities, highlighting topics such as artificial intelligence, cybersecurity, and executive leadership. Some of the scheduled events include:
- Orlando, FL: October 20-23, 2025
- Tokyo, Japan: October 28-30, 2025
- Barcelona, Spain: November 10-13, 2025
Conclusion
The projected growth in global IT spending reflects both technological expansion and economic challenges. As generative AI evolves and organizations continue to invest in critical infrastructure, the technology landscape of 2025 will be marked by increased complexity, innovation, and competition.
via: Gartner