Global IT spending to rise by 10 percent in 2025 – due to higher prices
The US market researchers at Gartner predict a 10% increase in IT investments this year. However, a large part of this growth will be spent on price increases.
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According to the latest Gartner forecast, global IT spending is expected to amount to 5.61 trillion US dollars in 2025. This corresponds to an increase of 9.8% compared to the volume in 2024, meaning that the pace of growth in the IT market will increase by a good two percentage points compared to the previous year.
Investments in equipment for data centers will also increase the most this year – even if growth falls from almost 40% to 23.2%. Providers active in this market segment are benefiting from an unbroken high demand for AI-optimized servers. According to the Gartner forecast, investments in corresponding systems will lead to the market volume almost doubling to 202 billion dollars in 2025. IT service providers and hyperscalers will account for over seventy percent of this expenditure this year.
One trillion US dollars for AI servers by 2028
According to Gartner analyst John-David Lovelock, hyperscalers are expected to install AI-optimized servers with a total value of one trillion dollars in their data centers by 2028. Considering these investments, they are expected to dominate the AI software and services business in the future, as the costs of training the sprawling models skyrocket. To put it bluntly: Hyperscalers are currently taking a lot of money in their hands to establish an oligopoly in the market for trained AI models.
On the other hand, the Gartner analyst is observing signs of a certain disillusionment on the part of user companies when it comes to GenAI, as initial attempts have failed to meet expectations, some of which were undoubtedly exaggerated. Nevertheless, Lovelock does not anticipate a slump in the corresponding investments. The purchase of AI-enabled PCs, tablets and cell phones, for example, is primarily due to the replacement and modernization of existing equipment. GenAI functionality plays a rather subordinate role here.
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Considering the lack of relevant software, the systems will initially be used for traditional tasks despite the new technical possibilities. In general, the scope for IT managers in companies remains limited despite increasing budgets. According to Gartner, a significant proportion of the growth is being swallowed up by unexpectedly high price increases – particularly for recurring expenses such as updates or maintenance of existing products and cloud services.
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