Gartner Forecasts Robust IT Market Growth
Worldwide IT spending is projected to reach $5.43 trillion in 2025, representing a 7.9% increase from 2024 levels according to Gartner's latest forecast. This growth comes despite an 'uncertainty pause' affecting net-new spending decisions across industries.
AI Investments Drive Expansion
Data center systems spending is expected to surge 42.4% year-over-year, fueled primarily by generative AI infrastructure demands. Distinguished VP Analyst John-David Lovelock noted that AI-optimized servers, virtually nonexistent in 2021, will triple traditional server spending by 2027.
Market Uncertainty Impact
A strategic suspension of net-new spending emerged in Q2 2025 due to macroeconomic concerns and geopolitical risks. While 61% of enterprises started 2025 stronger than 2024, only 24% expect to outperform their annual plans. Economic (41%) and geopolitical (32%) shocks were identified as primary risks.
| Segment | 2024 Spending | 2025 Projected | Growth |
|---|---|---|---|
| Data Center Systems | $333B | $474B | 42.4% |
| Software | $1.11T | $1.23T | 10.5% |
| IT Services | $1.61T | $1.69T | 4.4% |
Competitive AI Landscape
62% of executives identify AI as critical for future competitiveness, driving 64% of technology investments despite market headwinds. As generative AI enters the 'trough of disillusionment', CIOs increasingly prioritize plug-and-play solutions from established providers.