Global spending on information technology (IT) is projected to reach a record-breaking $7.35 trillion by 2027, marking a significant 15% increase from current year’s expenditures. This milestone, according to a new report by international analytics firm Gartner, will be the first time worldwide IT outlays surpass the $7 trillion threshold.
Key Trends Driving Growth
Several pivotal factors are expected to fuel this substantial growth:
- Data Center Systems Surge: Spending on data center systems is anticipated to dramatically narrow the gap with communication services by 2027. The difference is projected to be only around $300 billion.
- Persistent Memory Inflation: The trend of “memory inflation” is forecast to continue through 2027. Elevated prices for semiconductor memory for data storage are expected to temper end-user demand.
- Data Centers as Strategic Assets: Data center infrastructure is increasingly being recognized and leveraged as a strategic asset by businesses.
- Explosive AI Growth: Overall spending on Artificial Intelligence (AI) within the IT sector is set for explosive growth.
Detailed IT Spending Breakdown (USD Billions)
Gartner has provided a detailed breakdown of projected IT spending:
| Category | Current Year Spending | Current Year Change | Next Year Spending | Next Year Change |
|---|---|---|---|---|
| Data Center Systems | 8,790 | +73.8% | 13,660 | +55.5% |
| Hardware | 8,740 | +7.2% | 9,160 | +8.1% |
| Software | 14,640 | +15.2% | 16,790 | +14.6% |
| Services | 15,570 | +4.4% | 16,330 | +4.9% |
| Infrastructure as a Service (IaaS) | 2,920 | +31.3% | 3,670 | +25.7% |
| Communication Services | 13,520 | +4.1% | 13,910 | +2.9% |
| Total | 63,910 | +14.5% | 73,520 | +15.0% |
All spending figures are in billions of U.S. dollars.
Expert Commentary
John-David Lovelock, distinguished vice president analyst at Gartner, commented on the trends:
“Memory inflation” is expected to continue through 2027, and high prices for semiconductor memory for data storage will continue to dampen end-user demand. At the same time, infrastructure is increasingly being treated as a strategic asset, and overall spending on AI in IT will see explosive growth.
Gartner’s projections indicate a continuously evolving IT landscape, driven by trends such as cloud computing, artificial intelligence, and the increasing demand for robust data center capabilities. Despite challenges like component market inflation, the overarching trajectory points towards sustained growth in spending on digital transformation and innovation.
