Global IT Spending Projected to Reach $5.61 Trillion in 2025 with 9.8% Growth
According to the latest forecast by Gartner, Inc., global IT spending is set to hit $5.61 trillion in 2025, reflecting a robust 9.8% increase from 2024. However, despite this growth, rising prices across IT categories are expected to absorb much of the budget expansions, posing challenges for CIOs in achieving real gains in IT investments.
“While budgets for CIOs are increasing, much of the growth will be consumed by price hikes within recurrent spending categories,” said John-David Lovelock, Distinguished VP Analyst at Gartner. He highlighted that nominal IT spending would be skewed in 2025, with many CIOs scaling back true budget expectations.
Double-Digit Growth Expected in Key Segments
Segments such as data center systems, devices, and software are expected to see double-digit growth, primarily driven by generative AI (GenAI) hardware upgrades. However, despite the investments, these upgraded segments are not yet poised to offer significant functional differentiation.
“Generative AI is heading toward the trough of disillusionment, as CIOs are moderating their expectations for the technology,” said Lovelock. While AI-enabled devices like PCs, tablets, and mobile phones are gaining market traction, they lack compelling “must-have” applications that fully leverage the upgraded hardware.
