Global IT spending is projected to reach $5.62 trillion in 2025, representing a 9.8% increase from 2024 levels, according to Gartner. The growth is largely driven by increased investments in software, data centre systems, and devices as enterprises focus on upgrading technology infrastructure and adapting to evolving operational demands.
Gartner’s IT spending forecast is derived from an analysis of sales data from over 1,000 vendors across the technology landscape, supported by both primary and secondary research.
“While budgets for CIOs are increasing, a significant portion will merely offset price increases within their recurrent spending,” said Gartner’s distinguished vice-president analyst John-David Lovelock. “This means that, in 2025, nominal spending versus real IT spending will be skewed, with price hikes absorbing some or all of budget growth. All major categories are reflecting higher-than-expected prices, prompting CIOs to defer and scale back their true budget expectations.”
Spending on data centre systems is expected to grow by 23.2% in 2025, reaching $405.5bn, up from $329.1bn in 2024. Devices spending is forecast to rise by 10.4%, reaching $810.2bn compared to $734.2bn in 2024.
Software is projected to see the fastest growth, with spending anticipated to climb 14.2%, from $1.09 trillion in 2024 to $1.25 trillion in 2025. IT services, the largest segment of global IT spending, are expected to increase by 9%, with expenditures rising from $1.59 trillion in 2024 to $1.73 trillion in 2025.
Communications services, the second-largest segment, are projected to grow more modestly, by 3.8%, from $1.37 trillion in 2024 to $1.42 trillion in 2025.
IT spending in 2024 grew by 7.7% year-over-year, reaching $5.11 trillion. This closely aligns with Gartner’s January 2024 forecast, which had predicted an 8% increase, projecting IT spending for the year to reach $5.06 trillion.
Data centre systems led the growth, with a 39.4% increase, followed by software at 12%. Devices spending grew by 6%, while IT services and communications services posted more subdued growth rates of 5.6% and 2.3%, respectively.
Generative AI’s influence on IT spending
Spending on generative AI (GenAI) technologies is emerging as a critical driver of IT growth, particularly through hardware investments. AI-optimised server spending is expected to double in 2025, reaching $202bn as businesses scale their computational capabilities. Despite this growth, Gartner noted that the functional differentiation of GenAI solutions remains in the early stages.
According to Gartner, global IT spending is forecast to surpass $7 trillion by 2028, with GenAI accounting for over $1 trillion of that total. This includes investments in AI models, specialised AI-managed services, and AI-optimised infrastructure-as-a-service (IaaS).
Lovelock stated that IT services companies and hyperscalers are expected to account for over 70% of IT spending in 2025. He added that by 2028, hyperscalers are projected to operate $1 trillion worth of AI-optimised servers, although this would not fall within their traditional business models or the IaaS market. Instead, hyperscalers are shifting towards becoming part of the oligopoly AI model market.
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