IT spending in 2024 is even higher than Gartner predicted last spring. The firm estimates that they will reach $5.26 trillion, if telecommunications services are included. If we exclude this last segment from the calculation, 3.73 trillion will be invested in 2024 in the different segments of business IT (data centers, devices, software, IT services). In April 2024, Gartner predicted a total of 3.51 trillion.
Jump in data center spending
Above all, Gartner has drastically revised upwards its predictions for the data center segment, which will generate 35% more spending, compared to 2023, and reach a total of 318 billion in 2024 (the firm expected this spring a total of 260 billion). “Current spending in the area of generative AI (GenAI) is primarily driven by technology companies building the supply infrastructure for GenAI,” says analyst John-David Lovelock. Although the segment will not see as big a jump in 2025, it is still expected to grow by nearly $50 billion. “More money will be spent, but CIO expectations regarding GenAI capabilities will decrease,” warns the analyst, however.
Software and IT services segments also benefit from GenAI
The increase in software spending in 2024 will be less strong than that anticipated last April, but still sustained (+12% compared to 2023), with a total of 1,088 billion dollars. IT services, for their part, will generate investments of $1,588 billion in 2024 (+6%). It’s also less than previously anticipated, due to a slowdown in spending on consulting services, with Gartner citing CIO fatigue with change.
According to Gartner, current spending in these two segments is also in favor of AI-related projects. The firm explains this dynamic by the fact that most companies plan to implement GenAI solutions in 2025. Suppliers have anticipated the needs by integrating GenAI capabilities into their existing products and services, as well as for cases of use identified by their customers. This trend is expected to continue in 2025, with slightly higher annual increases in both the software and IT services segments.
The devices segment is raising its head
Spending on devices will also increase in 2024 (+6%). Gartner had already anticipated a rebound in this segment in the spring. More than the appearance on the market of devices designed for GenAI, the firm attributes this recovery to the reduction in the average lifespan of mobile phones, which are replaced more quickly by companies.
In the long term, Gartner predicts that IT spending will increase by $500 billion per year. The $7,000 billion mark should thus be crossed in 2028.
