Worldwide IT Spending to Reach $5.26 Trillion in 2024: Gartner

Worldwide IT Spending to Reach $5.26 Trillion in 2024: Gartner
Published on: 
2 min read

Worldwide IT spending is expected to total $5.26 trillion in 2024, an increase of 7.5% from 2023, according to the latest forecast by Gartner, Inc. This is a decrease from the previous quarter’s forecast of 8% growth, but an increase of the overall spend forecast of $5.06 trillion. 

“Generative AI (GenAI) is being felt across all technology segments and subsegments, but not to everyone’s benefit,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “Some software spending increases are attributable to GenAI, but to a software company, GenAI most closely resembles a tax. Revenue gains from the sale of GenAI add-ons or tokens flow back to their AI model provider partner.”

Data Center Systems Spending Booms Under GenAI

Spending on data center systems is expected to increase 24% in 2024, up from the previous quarter’s forecast of 10% growth. This is due in large part to increased planning for GenAI. (See Table 1).

Worldwide IT Spending to Reach $5.26 Trillion in 2024: Gartner
Gartner Reports 1.9% Increase in Global PC Shipments for Q2 2024

“The compute power needs of GenAI are being felt across the data center, and spending in that segment reflects this ravenous demand,” said Lovelock.

Table 1. Worldwide IT Spending Forecast (Millions of U.S. Dollars)

CIO Team Fatigue Lasting Longer Than Expected

IT services spending is now projected to grow 7.1% in 2024, down from 9.7% within the last forecast, due in part to slower spending across subsegments that include consulting and business process services.

"The change fatigue in CIOs that we saw at the start of the year has now abated and the contract backlogs going back to the third quarter of 2023 are being cleared. We expect to see a larger rush towards the end of the year to make up for the slow start," said Lovelock.

𝐒𝐭𝐚𝐲 𝐢𝐧𝐟𝐨𝐫𝐦𝐞𝐝 𝐰𝐢𝐭𝐡 𝐨𝐮𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬 𝐛𝐲 𝐣𝐨𝐢𝐧𝐢𝐧𝐠 𝐭𝐡𝐞 WhatsApp Channel now! 👈📲

𝑭𝒐𝒍𝒍𝒐𝒘 𝑶𝒖𝒓 𝑺𝒐𝒄𝒊𝒂𝒍 𝑴𝒆𝒅𝒊𝒂 𝑷𝒂𝒈𝒆𝐬 👉 FacebookLinkedInTwitterInstagram

Related Stories

No stories found.
logo
DIGITAL TERMINAL
digitalterminal.in