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.”
Testimonial
"Our marketing partnership with I-Connect007 is already delivering. Just a day after our press release went live, we received a direct inquiry about our updated products!"
Rachael Temple - AlltematedSuggested Items
New Podcast Episode: How Does UHDI Benefit SWaP?
10/01/2025 | I-Connect007In podcast episode 4, “SWaP Considerations,” host Nolan Johnson welcomes back industry expert John Johnson, Director of Quality and Advanced Technology at American Standard Circuits (ASC). Together, they explore how UHDI delivers measurable advantages in size, weight, and power (SWaP)—unlocking new possibilities in speed, efficiency, and miniaturization.
October 2025 SMT007 Magazine: Upgrading Your Production Software
10/01/2025 | I-Connect007 Editorial TeamEMS companies need advanced software systems to thrive and compete. But these systems require significant effort to integrate and deploy. What is the reality, and how can we make it easier for everyone? The October 2025 issue of SMT007 Magazine investigates business operations software and how best to achieve the necessary integrations.
Federal Electronics Successfully Completes AS9100 and ISO 9001 Surveillance Audit at Cranston Headquarters
09/30/2025 | Federal ElectronicsFederal Electronics, a leader in providing advanced electronic manufacturing services, announced the successful completion of its annual AS9100 and ISO 9001 surveillance audit at its headquarters in Cranston, Rhode Island.
IEMI 2026 in Bengaluru: Shaping the Next Era of Electronics
10/01/2025 | Arpita Das, Global Electronics AssociationIntegrated Electronics Manufacturing & Interconnections (IEMI) 2026, Jan. 29–30, at Taj Yeshwantpur, Bengaluru, builds on the success of IEMI 2024, which took place in both Kuala Lumpur and Bengaluru and attracted over 1,200 participants. From smart factory showcases to IPC-certified soldering competitions, it was a platform for knowledge exchange and technical engagement.
Federal Electronics Enhances Hermosillo Operations with Installation of Mycronic MyPro S30 Stencil Printer
09/29/2025 | Federal ElectronicsFederal Electronics, a leader in providing advanced electronic manufacturing services, has expanded its production capabilities with the installation of a new Mycronic MyPro S30 Stencil Printer at its Hermosillo facility.