Global IT spending is expected to reach $5.61 trillion by 2025, according to the latest Gartner forecast. This represents a 9.8% increase compared to 2024. The growth rate in the IT market is accelerating by about two percentage points compared to the previous year.
Investments in data center equipment are expected to grow the most this year, even if the growth rate falls from nearly 40% to 23.2%. Providers in this market segment benefit from the high demand for AI-optimized servers. According to the Gartner forecast, investments in these systems will almost double the market volume to $202 billion by 2025. Over seventy percent of these expenses this year are covered by IT service providers and hyperscalers.
By 2028, hyperscalers are expected to install AI-optimized servers worth a total of one trillion dollars in their data centers. Given these investments, they are likely to dominate the AI software and services market in the future, as the costs for training expansive models rise. Simply put, hyperscalers are currently investing heavily to establish an oligopoly in the market for trained AI models.
On the user side, Gartner analyst John-David Lovelock observes signs of some disillusionment regarding GenAI, as initial attempts have not met the sometimes-exaggerated expectations. However, Lovelock does not expect a decline in related investments.
The purchase of AI-capable PCs, tablets, and mobile phones is primarily driven by the need to replace and modernize existing equipment. GenAI functionality plays a minor role in this. Due to the lack of relevant software, these systems will initially be used for traditional tasks despite their new technical capabilities.
Overall, the decision-making scope of IT managers in companies remains limited despite rising budgets. A significant portion of the increase is consumed by unexpectedly high price increases, particularly for recurring expenses such as updates or maintenance of existing products and cloud services.
In conclusion, the IT industry is poised for significant growth driven by investments in AI and data center equipment. However, challenges such as high costs and limited software availability may temper expectations. IT managers must navigate these complexities while managing rising costs and ensuring their systems meet evolving business needs.