Generative AI is heralding a new era in the global technology landscape, with forecasts predicting substantial increases in IT spending driven by AI-related projects. Gartner’s latest report indicates that worldwide IT expenditure is expected to soar to $5.74 trillion by 2025, propelled largely by advancements in generative AI (genAI).
Surge in Server Sales
A significant portion of this growth is anticipated in the server sales sector, where revenues are projected to triple from 2023 to 2028. The demand for data center systems, optimized for AI capabilities, will drive this surge. Server sales alone are expected to skyrocket from $134 billion in 2023 to $332 billion by 2028, with a notable jump to more than $257 billion in 2025. This rapid increase contrasts sharply with the relatively slower growth observed in spending on cloud and outsourcing services over the past two decades.
Rise in Software and IT Services Spending
In addition to servers, substantial growth is also forecasted in software and IT services. Software expenditures are set to increase by 14%, reaching $1.23 trillion by 2025. IT services are expected to see a 9.4% uptick, amounting to $1.73 trillion in the same year. GenAI, a pivotal catalyst for this growth, is driving a broad range of AI-related initiatives. These include developments in email and content creation tools, projected to add $6.6 billion to global spending in 2024 and $7.4 billion in 2025.
Detailed Growth Projections
Gartner’s forecast outlines specific growth rates for various IT segments:
- Data center systems are expected to grow by 15.5%.
- Spending on devices is set to increase by 9.5%.
- Software expenditures will rise by 14%.
- IT services are projected to see a 9.4% increase.
- Communication services are anticipated to grow by 4.4%.
- Overall IT spending will increase by 9.3%.
Hyperscalers and AI-Optimized Offerings
The report points to a significant increase in investments in data center systems due to hyperscalers enhancing their AI-optimized offerings. This marks a notable shift from previous trends and underscores the substantial influence of genAI on future IT expenditures.
Transformative Force
Generative AI is ushering in a groundbreaking shift in the global technology scene. According to forecasts, IT spending is set to climb significantly due to projects related to AI. Gartner’s recent report predicts that global IT expenditure will surge to $5.74 trillion by 2025, largely fueled by advancements in generative AI, or genAI. This technology is becoming a pivotal factor in driving innovation and economic growth across various sectors. Companies are investing heavily in AI to gain a competitive edge, enhance operational efficiency, and deliver cutting-edge solutions.
The integration of genAI is not just limited to tech giants; smaller enterprises are also embracing this technology to scale their operations and improve customer experiences. The robust abilities of generative AI in creating new content, automating processes, and optimizing business functions are proving to be invaluable. As a result, the surge in IT spending is reflective of the broader trend of digital transformation driven by AI innovations. This momentum is expected to continue, shaping the future of technology and business practices globally.
