GARTNER, INC. GenAI 'Tax' Affecting Segments Such as Software.
Worldwide IT spending is expected to total
'Generative AI (GenAI) is being felt across all technology segments and subsegments, but not to everyone's benefit,' said
Data Center Systems Spending Booms Under GenAI
Spending on data center systems is expected to increase 24% in 2024, up from the previous quarter's forecast of 10% growth. This is due in large part to increased planning for GenAI. (See Table 1).
'The compute power needs of GenAI are being felt across the data center, and spending in that segment reflects this ravenous demand,' said Lovelock.
Table 1. Worldwide IT Spending Forecast (Millions of
2023 Spending
2023 Growth (%)
2024 Spending
2024 Growth (%)
Data Center Systems
236,098
4.0
293,091
24.1
Devices
692,784
6.5
730,125
5.4
Software
974,089
11.5
1,096,913
12.6
IT Services
1,503,698
4.9
1,609,846
7.1
Communications Services
1,491,733
3.2
1,537,188
3.0
Overall IT
4,898,401
3.8
5,267,163
7.5
Source: Gartner (
CIO Team Fatigue Lasting Longer Than Expected
IT services spending is now projected to grow 7.1% in 2024, down from 9.7% within the last forecast, due in part to slower spending across subsegments that include consulting and business process services.
'The change fatigue in CIOs that we saw at the start of the year has now abated and the contract backlogs going back to the third quarter of 2023 are being cleared. We expect to see a larger rush towards the end of the year to make up for the slow start,' said Lovelock.
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, 2Q24 Update.'
Learn more in the complimentary Gartner webinar Gartner IT Spending Forecast, 2Q24 Update: Implementing Generative AI taking place
More information on the outlook for the IT industry will be presented during Gartner IT Symposium/Xpo, the world's most important conferences for CIOs and other IT executives. Gartner analysts and attendees will explore the technology, insights and trends shaping the future of IT and business, including AI, business transformation, cybersecurity, customer experience, data analytics, executive leadership and more. Follow news and updates from the conferences on X using #GartnerSYM, and on the Gartner Newsroom.
Upcoming dates and locations for Gartner IT Symposium/Xpo include:
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