Gartner Predicts 8% Growth in Global IT Spending for 2024

STAMFORD, Conn., April 17, 2024 — Gartner, Inc. forecasts worldwide IT spending to reach $5.06 trillion in 2024, marking an 8% increase from the previous year. This upward revision from the previous forecast of 6.8% growth indicates a significant trajectory towards surpassing $8 trillion by the end of the decade.

John-David Lovelock, Distinguished VP Analyst at Gartner, highlights the accelerating growth of IT services, expected to grow by 9.7% and surpass $1.52 trillion. Enterprises are increasingly relying on IT service firms for talent with key IT skill sets, leading to a greater investment in consulting spend compared to internal staff.

A notable surge in spending on data center systems is anticipated, particularly driven by preparations for generative AI (GenAI) initiatives. Lovelock notes the evolution from storytelling to planning for GenAI, with technology providers already in the execution phase, integrating GenAI capabilities into existing products and services.

The forecast indicates significant spending by service providers supporting large-scale GenAI projects, particularly in markets such as servers and semiconductors. AI servers are projected to constitute close to 60% of hyperscalers’ total server spending by 2024.

In India, IT spending is expected to grow by 13.2% in 2024, reaching $138.9 billion. Software spending is set to experience the highest growth rate at 18.6%, driven by Indian CIOs prioritizing growth, customer experience, and operational efficiency. However, revenue from GenAI in the software industry is currently minimal, with Indian CIOs in the planning and evaluation stage.

Furthermore, a significant rebound in devices spending is anticipated, with mobile phone replacement cycles shortening and consumers and enterprises upgrading earlier. This shift contributes to an expected 3.6% growth in devices spending, reaching $688 billion in 2024.

Gartner’s IT spending forecast methodology relies on extensive analysis of sales data from over a thousand vendors and primary and secondary research sources to provide comprehensive market size data. These forecasts offer valuable insights for understanding market opportunities and challenges across hardware, software, IT services, and telecommunications segments.