Global IT spending is anticipated to reach $5.1 trillion in 2024, marking an 8% rise from the previous year, as per the latest Gartner, Inc. forecast. Despite generative AI (GenAI) not yet significantly affecting IT expenditure, the broader investment in AI is fostering overall growth in IT spending.

John-David Lovelock, Distinguished VP Analyst at Gartner, stated, “In 2023 and 2024, GenAI is projected to have a minimal impact on IT spending. However, organizations continue to channel investments into AI and automation to enhance operational efficiency and address IT talent shortages. The buzz surrounding GenAI is contributing to this trend, as CIOs acknowledge that current AI initiatives will play a crucial role in formulating an AI strategy and narrative before GenAI integrates into their IT budgets, set to commence in 2025.”

Discussions on the trends shaping the IT market are taking place at the Gartner IT Symposium/Xpo, ongoing until Thursday.

Increased spending on cloud services is expected to drive double-digit growth in the software and IT services sectors in 2024. Global public cloud services spending is predicted to surge by 20.4% in 2024, primarily propelled by a combination of cloud vendor price hikes and heightened utilization, akin to trends observed in 2023.

Despite devices spending facing challenges due to inflation in 2022 and 2023, a modest rebound of 4.8% is forecasted for 2024. Cybersecurity spending is also contributing to the growth in the software segment, with 80% of CIOs planning to boost investments in cyber/information security in 2024, identified as the top technology category for increased spending in the 2024 Gartner CIO and Technology Executive Survey.

Artificial Intelligence is triggering security concerns, leading to double-digit growth projections across all enterprise security spending segments in 2024, according to Lovelock.

Change fatigue among Chief Information Officers (CIOs) is resulting in a hesitancy to invest in new projects and initiatives, causing a portion of 2023’s IT spending to spill over into 2024. This trend is expected to persist into 2025.

Lovelock commented, “Amid a wave of pragmatism, capital constraints, or margin worries, CIOs are postponing certain IT expenditures. Organizations are redirecting the focus of IT projects towards cost control, efficiency, and automation, while scaling back on initiatives with longer return-on-investment timelines.”

Gartner’s IT spending forecast methodology relies on rigorous analysis of sales data from over a thousand vendors across the entire spectrum of IT products and services. The methodology employs primary research techniques along with secondary research sources to build a comprehensive market size database, forming the basis for its forecasts.

The Gartner quarterly IT spending forecast offers a unique insight into IT spending across hardware, software, IT services, and telecommunications. These reports aid Gartner clients in comprehending market opportunities and challenges. The latest IT spending forecast research is available to Gartner clients in the “Gartner Market Databook, 3Q23 Update“.