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IT spending is set to top $5 trillion this year for the first time

April 18, 2024
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The worldwide spend on IT is predicted to top $5 trillion for the first time ever this year, according to the latest Gartner forecasts.

The analyst firm says it expects IT spending to reach $5.06 trillion in 2024, a considerable 8% increase from the previous year.

The positive outlook is welcome news for the sector – just last quarter, the increase was expected to be 6.8%, indicating stronger-than-anticipated signs of recovery.

IT spend boost

John-David Lovelock, Distinguished VP Analyst at Gartner, emphasized the importance of artificial intelligence in contributing towards the rising spend and its continuing effects on the sector moving forward:

“We are seeing a cycle of story, plan, execution when it comes to GenAI. In 2023, enterprises were telling the story of GenAI and in 2024 we are seeing most of them planning for eventual execution in 2025.”

A notable shift in focus towards generative AI is quantified in the anticipated 10% year-on-year growth in data center system investment, though it continues to be the smallest of the five measured categories by a long shot, potentially accounting for around $259.68 billion of the $5.06 trillion spend in 2024.

Lovelock also noted that the ongoing skills shortage is driving a greater need for investment in consulting services – spend in this area is quickly catching up with communications services, with Lovelock indicating that it could even reach the number one position soon.

The second-smallest of the five categories, devices, is set to see the lowest year-on-year growth of 3.6%, but this is a marked change over the 9.1% decrease this time last year. Gartner reveals that the average device lifespan is shortening as people are looking to upgrade more frequently.

Moreover, industry analyst firms like IDC and Canalys have also suggested that device shipments could once again be on the rise thanks to the emerging AI PC market, further supporting Gartner’s prediction that global IT spend could reach the momentous $5 trillion mark.

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