Gartner Predicts Significant Rise in Global IT Spending in 2025
- Gartner predicts global IT spending to jump to $5.7 trillion by 2025.
- A major driver behind this growth is the need for AI infrastructure.
- Software spending will reach $1.24 trillion, outpacing data center investments.
- Device replacement cycles from the pandemic-era purchases will boost IT budgets.
- CIOs are tempering expectations for generative AI, focusing on practical applications.
Gartner’s IT spending forecast reveals growth trends and factors
Gartner Predicts Significant Rise in Global IT Spending in 2025 Gartner has released a report projecting a robust increase in worldwide IT spending, expecting it to surge to over $5.7 trillion by 2025. This anticipated growth, clocked at 9.3%, marks one of the largest jumps seen in this century. Notably, while artificial intelligence investments are playing a role, this uptrend also includes a range of other factors—think price rises and replacements for devices bought during the pandemic’s height. Looking at the numbers, data center spending alone could rise almost 35% this year, driven heavily by a need for infrastructure supportive of generative AI. “We’re seeing companies ramping up their data center builds and adaptations to train AI, which means spending will not ease off any time soon,” remarks John Lovelock, distinguished vice president analyst at Gartner. Software spending, meanwhile, projected to touch $1.24 trillion next year, will grow too—around 14%—and it’s expected to outpace the data center segment by a wide margin.
Shifts in device purchases and advanced IT spending highlight future increases
Device Spending Set to Increase Along With Advanced IT Investments In addition to the big jumps in data center and software segments, Gartner predicts a notable 9.5% rise in device spending. This is essentially fueled by a wave of replacements for the many laptops, folding tablets, and other electronics that consumers picked up during the lockdown years of 2020 and 2021. Lovelock notes that while consumers are being pushed towards AI-enabled gadgets, the market is still figuring its footing. “Soon enough, buying anything that doesn’t have AI optimizations will be a rare occurrence,” he adds. However, present spending habits remain traditional: consumers assess their budgets first, then search for the best deal within their price range. On another note, some businesses are gearing up for substantial IT investments in the near future. Roy Rucker Sr., CEO of TRECIG, a cybersecurity and IT consultancy, expresses confidence in upping their investment in advanced technologies like AI, contributing to a modern digital infrastructure to compete effectively.
Industry perspectives highlight a blend of uncertainties and optimism
Anticipated IT Spending Increases Reflect Broader Market Trends With 2025 on the horizon, many industry leaders, including Rucker, emphasize on bolstering cybersecurity investments and analytics capabilities, all deemed critical for staying ahead amidst economic uncertainties. Rucker notes the rising expenses in data management and storage as vital to navigate the surging volumes of data generated continuously. He articulates, “These areas of spending are strategic, not just reactive to trends; it’s about fostering long-term growth and resilience. However, not all firms share the same optimism. According to John Samuel, global CIO at Computer Generated Solutions, their stance is to optimize existing resources while strategically investing in IT innovations that align directly with the outcomes preferred by clients. Nevertheless, Samuel agrees with Gartner’s forecasts concerning rising investments, particularly in AI and automation. “The urgency for AI-driven solutions continues to rise as we face complex technology challenges that need swift resolutions,” he remarks. This increasing focus is not simply a buzzword; it’s a necessity for sustainable growth moving forward.
In summary, Gartner’s ambitious predictions on IT spending for 2025 reflect a convergence of factors including AI investments along with the usual market drivers. The highlight of a 9.3% overall growth underscores an evolving landscape that businesses must navigate, with a focus on updated devices and better infrastructure. While some firms are canceling out on major spending increases, the market trend appears to lean towards increased investment in technology that enhances operational efficiencies.