Worldwide IT spending is projected to reach $5.74 trillion in 2025, marking a 9.3% increase from the previous year, according to the latest forecast from Gartner Inc., a research and consulting firm. The report attributes this growth largely to advancements in generative AI (GenAI), alongside increased investments in software and IT services.
“Current spending on generative AI has mostly come from tech companies building the infrastructure for it,” John-David Lovelock, an analyst at Gartner, said in a statement. “In 2025, CIOs will start investing in GenAI beyond proof-of-concept work, although their expectations may lessen as they realize the limitations of current AI models.”
Data center systems are also expected to continue growing, though not as dramatically as in 2024. Server sales, in particular, are projected to increase by nearly $50 billion in 2025.
“GenAI will have a more significant impact on server sales than previous technologies like cloud computing and outsourcing,” Lovelock explained.
Spending on software is expected to grow by 14%, reaching $1.23 billion in 2025. IT services will see a 9.4% rise, hitting $1.73 billion. These sectors, according to Lovelock, are fueled by AI-related projects.
“Despite being a mature market, software will add over $7 billion to global spending in 2025, with GenAI playing a key role,” he added.
Gartner’s report underscores the potential for IT spending to surpass $7 trillion by 2028, driven by steady annual growth.
Gartner gathered the data from over a thousand vendors across various IT sectors.