Worldwide IT spending is projected to reach $5.61 trillion in 2025, an increase of 9.8 per cent from 2024, as per the latest forecast by Gartner, Inc.
However, a significant portion of this increase will likely offset rising prices, according to Gartner vice-president and distinguished analyst John-David Lovelock. “While CIOs are increasing budgets, price hikes will absorb some or all of that growth,” he said. “This means real IT spending growth may be lower than nominal spending.”
Segments such as data centre systems, devices, and software are expected to experience double-digit growth in 2025, primarily driven by hardware upgrades for generative AI (GenAI). However, Mr Lovelock noted that these upgraded segments may not yet offer significant functional differentiation. “GenAI is entering a phase of declining expectations among CIOs,” he said. “For instance, AI-ready PCs lack must-have applications that fully utilise the hardware.”
Spending on AI-optimised servers is projected to reach $202 billion in 2025, surpassing spending on traditional servers. “IT services companies and hyperscalers account for over 70 per cent of spending in 2025,” said Mr Lovelock. “By 2028, hyperscalers will operate $1trn worth of AI-optimised servers, but not within their traditional business model or IaaS market. They are pivoting towards an oligopoly AI model market.”
Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of sales data from over a thousand vendors across the IT landscape. This data is gathered through primary research techniques and complemented by secondary research sources.
avinash@gdnmedia.bh
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