Gartner Forecasts Worldwide GenAI Spending to Reach $644 Billion in 2025
March 31, 2025 | Gartner, Inc.Estimated reading time: 1 minute
Worldwide generative AI (GenAI) spending is expected to total $644 billion in 2025, an increase of 76.4% from 2024, according to a forecast by Gartner, Inc.
“Expectations for GenAI's capabilities are declining due to high failure rates in initial proof-of-concept (POC) work and dissatisfaction with current GenAI results,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “Despite this, foundational model providers are investing billions annually to enhance GenAI models' size, performance, and reliability. This paradox will persist through 2025 and 2026.
“Ambitious internal projects from 2024 will face scrutiny in 2025, as CIOs opt for commercial off-the-shelf solutions for more predictable implementation and business value. Despite model improvements, CIOs will reduce POC and self-development efforts, focusing instead on GenAI features from existing software providers.” said Lovelock.
GenAI spending is poised for significant growth across all core markets and submarkets in 2025. GenAI will have a transformative impact across all aspects of IT spending markets, suggesting a future where AI technologies become increasingly integral to business operations and consumer products.
AI Capable Consumer Devices to Drive GenAI Spending
GenAI spending in 2025 will be driven largely by the integration of AI capabilities into hardware, such as servers, smartphones and PCs, with 80% of GenAI spending going towards hardware.
“The market’s growth trajectory is heavily influenced by the increasing prevalence of AI-enabled devices, which are expected to comprise almost the entire consumer device market by 2028,” said Lovelock. “However, consumers are not chasing these features. As the manufacturers embed AI as a standard feature in consumer devices, consumers will be forced to purchase them.”
Gartner’s GenAI spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of GenAI 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.
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
Datest Unveils Viscom iX7059 XL 3D CT AXI System
08/25/2025 | DatestDatest, a trusted leader in advanced testing, engineering, inspection, and failure analysis services, and the go-to destination for when your boards misbehave and your AXI line goes on vacation, is thrilled to announce the arrival of its newest diagnostic weapon: the Viscom iX7059 XL 3D CT AXI Inspection System.
Polar Instruments Announces Additive Transmission Line Support for Si9000e
08/20/2025 | Polar InstrumentsTransmission lines embedded into the PCB surface are a feature of UHDI constructions. The 2025 fall release of Polar's Si9000e PCB impedance & insertion loss transmission line field solver incorporates eight new single ended, differential and coplanar transmission line structures.
Axxon-Mycronic Brings High-Performance Conformal Coating to productronica India 2025
08/20/2025 | Axxon-MycronicAxxon-Mycronic, a leading, global supplier of innovative and production-ready, dispensing and conformal coating systems, is pleased to announce its participation in productronica India 2025, taking place September 17–19 at the Bangalore International Exhibition Centre (BIEC).
The Marketing Minute: Staying Positive When the Market Isn’t
08/20/2025 | Brittany Martin -- Column: The Marketing MinuteIn today’s volatile electronics market, buffeted by tariffs, supply-chain shifts, and squeezed margins, it’s tempting to tighten belts and cut your marketing budget. But history shows us that the quietest brands get forgotten fastest. Staying visible is not a luxury; it’s a competitive advantage.
Eltek Ltd. Reports Strong Second-Quarter 2025 Results
08/14/2025 | PR NewswireEltek Ltd., a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the quarter ended June 30, 2025.