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Infrastructure (Economics)

Worldwide IT Spending to Reach $5.43 Trillion by 2025

Strategic Insights

— 2 min read

Global IT spending is set to continue its upward trajectory in 2025, driven by growing demand for data center infrastructure and AI-driven transformation, despite a slowdown in net-new investments due to geopolitical and economic uncertainty.

Key Takeaways:

  • Spending on Data Center Systems will rise from $333.4 billion in 2024 to $474.9 billion in 2025, marking a 42.4 percent growth, following a similarly strong 40.3 percent increase in the previous year.
  • Devices spending will grow from $720.7 billion to $759.6 billion, up 5.4 percent in 2025, improving slightly from the 4.6 percent growth seen in 2024.
  • Software spending will increase from $1.11 trillion to $1.23 trillion, representing a 10.5 percent rise, slightly below the 11.9 percent growth recorded in 2024.
  • IT Services will grow from $1.61 trillion to $1.69 trillion, posting a 4.4 percent growth rate, slightly lower than the 4.8 percent rise in 2024.
  • Communications Services will see a marginal increase from $1.26 trillion to $1.28 trillion, growing by 2.1 percent in 2025 compared to 2.2 percent in the prior year.
  • The projected growth in worldwide IT spending in 2025 will benefit a wide range of technology vendors across different segments, including Dell Technologies, Hewlett Packard Enterprise (HPE), Cisco, Lenovo, Amazon Web Services, Microsoft Azure, Google Cloud, Apple, HP, Dell, Lenovo, Microsoft, SAP, Oracle, Salesforce, Adobe, ServiceNow, Palo Alto Networks, CrowdStrike, Fortinet, Accenture, Tata Consultancy Services (TCS), Infosys, Wipro, IBM, and Cognizant.
  • Vendors such as SAP, Oracle, and Salesforce are well-positioned to capitalize on rising enterprise investments in cloud-based applications, AI tools, productivity platforms, and digital transformation initiatives.
  • Security software vendors such as Palo Alto Networks, CrowdStrike, and Fortinet are also expected to benefit from continued cybersecurity concerns.

Statistics:

  • Worldwide IT spending is forecast to reach $5.43 trillion in 2025, marking a 7.9 percent increase from 2024.
  • Spending on Data Center Systems will rise from $333.4 billion in 2024 to $474.9 billion in 2025, with a 42.4 percent growth.
  • Devices spending will grow from $720.7 billion to $759.6 billion in 2025, with a 5.4 percent increase.
  • Software spending will increase from $1.11 trillion to $1.23 trillion in 2025, with a 10.5 percent rise.
  • IT Services will grow from $1.61 trillion to $1.69 trillion in 2025, with a 4.4 percent growth rate.
  • Communications Services will see a marginal increase from $1.26 trillion to $1.28 trillion in 2025, with a 2.1 percent growth.
  • Spending on AI-optimized servers is projected to triple that of traditional servers by 2027.
  • 62 percent of senior executives in North America and Western Europe view AI as central to their competitive strategy over the next decade.

Sources:

  • Gartner report
  • Gartner analyst John-David Lovelock
  • Gartner survey of senior executives in North America and Western Europe
  • Kizhakedath Media Services Pvt. Ltd.
  • Contify.com

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