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The $5.74 Trillion IT Market in 2025

David H. Deans
Technology | Media | Telecom
4 min readOct 28, 2024

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The global Information Technology (IT) sector is poised for significant growth and transformation in the coming year, driven by new tech advancements, economic factors, and evolving digital business needs.

The latest forecast from Gartner provides valuable insights into the future of IT spending and highlights key areas of opportunity for businesses and technology providers alike.

According to the latest market study, worldwide IT spending will reach $5.74 trillion in 2025, a 9.3 percent increase from 2024. This growth rate is noteworthy as a significant acceleration compared to the 7.2 percent increase expected during 2024.

Information Technology Market Development

The robust 2025 forecast underscores the critical role that technology continues to play in driving business innovation, efficiency, and competitiveness across industries.

“Current spending on Generative AI (GenAI) has been predominantly from technology companies building the supply-side infrastructure for GenAI,” said John-David Lovelock, VP Analyst at Gartner. “CIOs will begin to spend on GenAI, beyond proof-of-concept work, starting in 2025.”

One of the most interesting aspects of this forecast is the projected growth in the software segment. With an anticipated increase of 14 percent in 2025, software is still a fast-growing category within IT spending.

This trend reflects the ongoing shift towards cloud-based solutions, Software-as-a-Service (SaaS) models, and the increasing importance of data analytics and Artificial Intelligence (AI) in business operations.

The IT services segment is also expected to see strong growth, with a projected increase of 9.4 percent in 2025. This growth is likely driven by the increasing complexity of IT environments and the need for specialized expertise in areas such as cloud migration, cybersecurity, and digital transformation initiatives.

While hardware segments such as devices and data center systems are forecasted to grow at rates of 9.5 percent and 15.5 percent respectively, these areas also represent new opportunities for innovation and market expansion.

The continued evolution of edge computing, Internet of Things (IoT) devices, and next-generation data center technologies are likely to fuel more IT growth in these segments.

Several key trends will drive IT market growth opportunities:

Artificial Intelligence and Machine Learning

The rapid advancements in AI and ML technologies are set to revolutionize various aspects of business operations. From predictive analytics and process automation to personalized customer experiences, AI-driven solutions will continue to be a major focus for IT investments. Companies that can effectively harness these technologies to drive tangible business outcomes will likely see significant competitive advantages.

Cloud-Native Architectures

As organizations increasingly embrace cloud computing, there’s a growing shift towards cloud-native architectures and microservices. This trend is driving demand for containerization technologies, serverless computing platforms, and associated development and management tools. IT service providers and software vendors that can offer robust, scalable cloud-native solutions are well-positioned for growth.

Cybersecurity and Data Privacy

With the increasing frequency and sophistication of cyber threats, coupled with stricter data protection regulations, cybersecurity, and data privacy will remain top priorities for IT spending. This presents significant opportunities for vendors offering advanced threat detection, zero-trust security architectures, and compliance management solutions.

Sustainability and Green IT

As environmental concerns gain prominence, there’s a growing focus on sustainable IT practices. This trend is likely to drive investments in energy-efficient hardware, green data centers, and software solutions that optimize resource utilization and reduce carbon footprints.

Edge Computing and 5G

The proliferation of IoT devices and the ongoing rollout of 5G wireless networks are accelerating the adoption of edge computing. This shift presents opportunities for hardware manufacturers, network equipment providers, and software developers to create solutions that leverage these technologies for improved performance and real-time data processing capabilities.

Talent and Skills Development

With the rapid pace of technological change, there’s an increasing need for continuous learning and skills development in the IT workforce. This trend is likely to drive growth in the IT education and training sector, as well as in tools and platforms that facilitate remote collaboration and knowledge sharing. Proven business acumen is also an essential skill.

Outlook for IT Applications Investment Growth

The accelerated growth rate compared to previous years underscores the role of IT in driving business innovation and competitiveness. There are upside opportunities for vendors, service providers, and consultants who offer innovative solutions to key business needs.

To capitalize on these opportunities, technology companies and IT departments should focus on developing scalable, cloud-native solutions, leveraging AI and ML capabilities, prioritizing cybersecurity and data privacy, and embracing sustainable IT practices.

That said, I believe investing in talent development and fostering a culture of continuous learning will be crucial for staying in synch with this dynamic industry. Gaining strategic IT skills matters most.

The IT sector will introduce transformative innovations. Leaders who effectively anticipate and adapt to these trends will be the ones to thrive in the evolving global digital business economy.

Originally published at https://blog.geoactivegroup.com.

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