Marcy’s Musings: The Relentless Pursuit of Perfection
Dan’s Biz Bookshelf: ‘Do/Start'
Facing the Future: The Role of 5G and Beyond in Shaping PCB Demand
Gartner Forecasts Worldwide IT Spending to Grow 9.8% in 2025
January 23, 2025 | Gartner, Inc.Estimated reading time: 1 minute
Worldwide IT spending is expected to total $5.61 trillion in 2025, an increase of 9.8% from 2024, according to the latest forecast by Gartner, Inc.
“While budgets for CIOs are increasing, a significant portion will merely offset price increases within their recurrent spending,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “This means that, in 2025, nominal spending versus real IT spending will be skewed, with price hikes absorbing some or all of budget growth. All major categories are reflecting higher-than-expected prices, prompting CIOs to defer and scale back their true budget expectations.”
GenAI will Influence IT Spending, but IT Spending Won’t Be on GenAI Itself
Segments including data center systems, devices and software will see double-digit growth in 2025, largely due to generative AI (GenAI) hardware upgrades (see Table 1). However, these upgraded segments will not differentiate themselves in terms of functionality yet, even with new hardware.
"GenAI is sliding toward the trough of disillusionment which reflects CIOs declining expectations for GenAI, but not their spending on this technology," said Lovelock. “For instance, the new AI ready PCs do not yet have ‘must have’ applications that utilize the hardware. While both consumers and enterprises will purchase AI-enabled PC, tablets and mobile phones, those purchases will not be overly influenced by the GenAI functionality.”
Spending on AI-optimized servers easily doubles spending on traditional servers in 2025, reaching $202 billion dollars.
“IT services companies and hyperscalers account for over 70% of spending in 2025,” said Lovelock. “By 2028, hyperscalers will operate $1 trillion dollars’ worth of AI optimized servers, but not within their traditional business model or IaaS Market. Hyperscalers are pivoting to be part of the oligopoly AI model market.”
Share on:
Suggested Items
Flexible PCB Market to Reach $61.75B by 2032, Driven by the Demand for Compact Electronics, Automotive and Medical Applications
05/16/2025 | Globe NewswireAccording to the SNS Insider, “The Flexible PCB Market was valued at USD 21.42 billion in 2023 and is expected to reach $61.75 billion by 2032, growing at a CAGR of 12.52% over the forecast period 2024-2032.”
The ICAPE Group Announces a 13% Growth in Revenue to €51.1M for Q1 2025
05/15/2025 | ICAPE GroupThe ICAPE Group, a global technology distributor of printed circuit boards (PCB) and custom-made electromechanical parts, announced its sales for the first quarter of 2025.
Interlink Electronics Reports Q1 2025 Result
05/15/2025 | BUSINESS WIREInterlink Electronics, Inc., a global leader in sensor technology and printed electronic solutions, reported results for the first quarter ended March 31, 2025.
In Pursuit of Perfection: Defect Reduction—May 2025 PCB007 Magazine Now Available
05/15/2025 | I-Connect007 Editorial TeamFor bare PCB board fabrication, defect reduction is a critical aspect of a company's bottom line profitability. In the May 2025 issue of PCB007 Magazine, we examine the imaging, etching, and plating processes, as well as product traceability on the shop floor, providing information and insight into how you can reduce your defects and increase yields.
indie Semiconductor Reports Q1 2025 Results
05/13/2025 | BUSINESS WIREindie Semiconductor, Inc., an automotive solutions innovator, today announced first quarter results for the period ended March 31, 2025. Q1 revenue was up 3.3 percent year-over-year to $54.1 million with Non-GAAP gross margin of 49.5 percent. On a GAAP basis, first quarter 2025 operating loss was $38.9 million compared to $49.6 million a year ago.