Planning for GenAI Initiatives is Helping to Drive IT Spending in 2024 and Beyond.
Worldwide IT spending is expected to total
'With spending on IT services on track to grow by 9.7% to eclipse
Data Center Systems Investment Illustrates Shift in Focus to GenAI Spending
Spending on data center systems is expected to see a notable jump in growth from 2023 (4%) to 2024 (10%), in large part due to planning for generative AI (GenAI) (See Table 1).
'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,' said Lovelock. 'Technology providers are required to be a step ahead of this cycle and are already in the execution phase. They are bringing GenAI capabilities to existing products and services, as well as to use cases being identified by their enterprise clients.
'There is also gold rush level spending by service providers in markets supporting large scale GenAI projects, such as servers and semiconductors,' said Lovelock. 'In 2024, AI servers will account for close to 60% of hyperscalers total server spending.'
Table 1. Worldwide IT Spending Forecast (Millions of
2023 Spending
2023 Growth (%)
2024 Spending
2024 Growth (%)
Data Center Systems
236,179
4.0
259,680
10.0
Devices
664,028
9.1
687,943
3.6
Software
914,689
12.6
1,042,174
13.9
IT Services
1,385,120
6.1
1,519,928
9.7
Communications Services
1,487,161
3.3
1,551,288
4.3
Overall IT
4,687,177
3.8
5,061,013
8.0
Source: Gartner (
Devices Expected to Bounce Back in 2024
The average lifespan for mobile phones is shortening and consumers and enterprises are replacing mobile phones earlier. This change allows device spending to achieve
Gartner's IT spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.
The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available to Gartner clients in 'Gartner Market Databook, 1Q24 Update.'
Learn more in the complimentary Gartner webinar IT Spending Forecast, 1Q24 Update: GenAI - Where is All the Money? taking place
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