Global IT Spending Set to Exceed $5 Trillion in 2024: Gartner

Gartner predicts that worldwide IT spending will surpass $5 trillion for the first time in 2024, marking an 8% increase from the previous year. This surge is attributed to the growing importance of artificial intelligence. Notably, a focus on generative AI is driving a projected 10% year-on-year growth in data center system investment, potentially accounting for a significant portion of the total spend. Additionally, there is an increasing need for investment in consulting services due to an ongoing skills shortage. There is a potential rise in device shipments and emerging AI PC market, supporting Gartner's prediction.

Key Takeaways

• Worldwide IT spending is forecasted to reach $5.06 trillion in 2024, marking an 8% increase year-on-year.
• The growth in spend is attributed to the increasing significance of artificial intelligence (AI) in driving investment, particularly in generative AI.
• Data center system investment is anticipated to grow by 10% year-on-year, potentially accounting for around $259.68 billion of the total spending.
• The ongoing skills shortage is necessitating greater investment in consulting services, which could soon surpass communications services in spending.
• The device category is set to see the lowest year-on-year growth at 3.6%, but this marks a notable change from the 9.1% decrease seen the previous year as people are looking to upgrade more frequently.

Analysis

The surge in worldwide IT spending, projected to exceed $5 trillion in 2024, is largely driven by the rapid advancement and adoption of artificial intelligence (AI) technologies. This is expected to benefit organizations specializing in data center systems, consulting services, and device manufacturing, as they are likely to experience heightened demand. The significant increase in data center system investment, primarily attributed to generative AI, is set to reshuffle priorities within the IT industry. Additionally, the ongoing skills shortage necessitates increased investment in consulting services, potentially surpassing spending on communications services. The long-term consequence could be a transformation in the IT landscape, as AI continues to influence and shape technology investments.

Did You Know?

• Generative AI: Refers to artificial intelligence technology that is capable of creating or generating new content, such as images, text, and other forms of media, rather than just analyzing and interpreting existing data.
• Data Center System Investment: Involves spending on infrastructure and resources required to support data storage, processing, and management, typically within an organization's data center or cloud environment.
• Device Shipments and Emerging AI PC Market: Indicates the projected increase in shipments of devices, such as personal computers and laptops, integrating artificial intelligence capabilities, reflecting the growing trend of AI-driven features in hardware products.