Global IT spending could see a surprisingly big surge this year

News
By
published

IT spending could reach $5 trillion in 2024, Gartner predicts

Business Plan
(Image credit: Pixabay)

Gartner has forecast worldwide IT spending will reach $5 trillion in 2024, marking a healthy 6.8% increase over 2023, though slightly lower than the firm’s initial projection of around 8%.

Despite a lot of interest in artificial intelligence over the last 12 months, its impact on IT spending could be less than we might think, according to John-David Lovelock, Distinguished VP Analyst at Gartner.

Enterprises investing in organizational efficiency and optimization projects are expected to drive the most revenue, but many businesses are also set to invest in planning how to use generative AI.

IT spending is on the up

The predictions see IT services overtaking communications services in terms of total market value, accounting for an estimated $1.5 trillion. Though totalling a smaller financial value, devices are expected to see the biggest growth in terms of percentage, up by a predicted 12.7% this year.

Looking back, change fatigue among CIOs is credited with significantly impacting overall IT spending growth in 2023, resulting in a modest 3.3% increase from 2022.

Despite the anticipated recovery that Gartner predicts, change fatigue could continue to be present in 2024, leading CIOs to be cautious about signing new contracts, committing to long-term initiatives, and taking on new technology partners.

In a separate announcement, Gartner revealed that global PC shipments had declined in 2023 by an alarming 14.8%, but Mikako Kitagawa, Director Analyst at Gartner, shared a more positive outlook: “Gartner projects that the PC market will return to annual growth in 2024.”

Another study, this time by Canalys, reckons that the PC market could grow by around 8% in 2024 as it moves back toward pre-pandemic levels.

Ultimately, the outlook for 2024 looks positive, which not only emphasizes the increasing significance of IT services but also alludes to a recovering economy.

More from TechRadar Pro

Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!