The Chemical Connection: Onshoring PCB Production—Daunting but Certainly Possible
It’s Only Common Sense: The Phone Is Still Mightier Than the Keyboard
Gartner Forecasts Worldwide IT Spending to Grow 9.3% in 2025
October 24, 2024 | BUSINESS WIREEstimated reading time: 2 minutes
Worldwide IT spending is expected to total $5.74 trillion in 2025, an increase of 9.3% from 2024, according to the latest forecast by Gartner, Inc.
“Current spending on generative AI (GenAI) has been predominantly from technology companies building the supply-side infrastructure for GenAI,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “CIOs will begin to spend on GenAI, beyond proof-of-concept work, starting in 2025. More money will be spent, but the expectations that CIOs have for the capabilities of GenAI will drop. The reality of what can be accomplished with current GenAI models, and the state of CIO’s data will not meet today’s lofty expectations.”
Gartner analysts are discussing the trends that are impacting the IT market during Gartner IT Symposium/Xpo, taking place here through Thursday.
Server Sales Continue to Drive the Data Center Systems Segment
Data center systems spending grew by nearly 35% in 2024. While the segment will not see a jump equal to that in 2025, it is still set to grow by almost $50 billion in 2025 (See Table 1). This is led by server sales, which are set to almost triple from more than $134 billion in 2023 to $332 billion by 2028, including more than $257 billion in 2025.
"GenAI will easily eclipse the effects that cloud and outsourcing vendors had on previous years regarding data center systems," said Lovelock. “It took 20 years for the cloud and outsourcing vendors to build up spending to $67 billion a year on servers. The demand of GenAI will help nearly triple server sales from 2023 to 2028.”
Software and IT Services Drive Growth
Spending on software is expected to increase 14% to $1.23 billion in 2025, up from 11.7% growth in 2024. Meanwhile, IT services is expected to grow 9.4% to $1.73 billion in 2025, up from 5.6% in 2024.
“Software and IT services are a large driver of IT growth,” said Lovelock. “Spending on these segments is expected to be on AI-related projects, including email and authoring. This was a market that, despite its age and having been consolidated down to a small number of players, will add $6.6 billion to global spending in 2024 and $7.4 billion 2025 due in part to GenAI products and services.
“Our forecast projects that $500 billion will be added in spending every year in terms of growth rates. With this in mind, IT spending should cross the $7 trillion mark in 2028.”
Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.
The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available to Gartner clients in “Gartner Market Databook, 3Q24 Update.”
Share on:
Testimonial
"The I-Connect007 team is outstanding—kind, responsive, and a true marketing partner. Their design team created fresh, eye-catching ads, and their editorial support polished our content to let our brand shine. Thank you all! "
Sweeney Ng - CEE PCBSuggested Items
AI Triggers Next Paradigm Shift in PDN
10/23/2025 | Istvan Novak, SamtecArtificial intelligence (AI), together with machine learning (ML), is creating an unprecedented surge of computing and networking infrastructure needs. This, in turn, has dramatically increased the power consumption of computing and networking chips.
Teledyne FLIR Defense to Deliver Portable Chemical Detectors to US Customs and Border Protection
10/21/2025 | BUSINESS WIRETeledyne FLIR Defense, part of Teledyne Technologies Incorporated, announced that it has received an order from U.S. Customs and Border Protection (CBP) for 15 of its Griffin™ G510x portable chemical detectors, specifically designed to analyze and identify explosives and narcotics, such as fentanyl and nitazenes, within five minutes.
Curtiss-Wright to Supply Turret Drive Stabilization Systems for U.S. Army XM30 Combat Vehicle Prototypes
10/16/2025 | BUSINESS WIRECurtiss-Wright Corporation announced that it has been selected by American Rheinmetall to provide its Turret Drive Stabilization System (TDSS) for the prototype phase of the U.S. Army’s XM30 Combat Vehicle (CV) program, which was recently approved to advance to Milestone B, the Engineering and Manufacturing Development (EMD) phase.
Episode 6 of Ultra HDI Podcast Series Explores Copper-filled Microvias in Advanced PCB Design and Fabrication
10/15/2025 | I-Connect007I-Connect007 has released Episode 6 of its acclaimed On the Line with... American Standard Circuits: Ultra High Density Interconnect (UHDI) podcast series. In this episode, “Copper Filling of Vias,” host Nolan Johnson once again welcomes John Johnson, Director of Quality and Advanced Technology at American Standard Circuits, for a deep dive into the pros and cons of copper plating microvias—from both the fabricator’s and designer’s perspectives.
American Standard Circuits Achieves Successful AS9100 Recertification
10/14/2025 | American Standard CircuitsAmerican Standard Circuits (ASC), a leading manufacturer of advanced printed circuit boards, proudly announces the successful completion of its AS9100 recertification audit. This milestone reaffirms ASC’s ongoing commitment to the highest levels of quality, reliability, and process control required to serve aerospace, defense, space, and other mission-critical industries.