Gartner predicts that global IT spending will grow by 6.8% in 2024

Despite the wave of layoffs in the technology industry, the IT market continues to grow. According to Gartner's latest report, global IT spending is expected to reach US$5 trillion in 2024, with a growth rate of 6.8%, indicating that the IT industry still has strong development potential.

#Gartner’s latest report is a research and consulting study on IT spending that provides a unique perspective. They previously forecast IT spending growth of 8%, and although they have adjusted their forecasts, they still expect IT spending to grow more than double the previous year. This report covers spending in different areas such as IT services, hardware and software. As a leading market research and consulting company, Gartner's views are very valuable in understanding the development trends and market trends of the IT industry.

It is worth noting that, according to Gartner data, GenAI (generative artificial intelligence) will not significantly change the growth of IT spending in the short term.

According to Gartner Distinguished Vice President Analyst John-David Lovelock, although GenAI will bring significant changes, the impact on IT spending will not be as significant compared to technology trends such as the Internet of Things and blockchain. Significantly.

According to Lovelock, 2024 will see more focus on how to effectively utilize GenAI. The major share of IT spending will continue to be driven by traditional factors such as labor and profitability. However, these expenditures will be negatively impacted by the ongoing wave of “change fatigue,” where organizations feel overwhelmed by too much change. Therefore, organizations will need to take appropriate measures to alleviate this fatigue, such as planning change strategies more precisely, providing adequate training and support, etc.

According to a Gartner report, CIOs generally face the problem of change fatigue and are increasingly less receptive to long-term plans and new technology partners. They want to know with greater certainty the results of new initiatives and reduce risks.

Despite the challenge of change fatigue, IT services are expected to experience the largest growth of 8.7% by 2024, becoming the major component of IT spending, reaching $1.5 trillion. The key driver behind this unprecedented growth is increased investment in project optimization and organizational efficiency.

According to forecasts, after a sharp decline in IT spending in 2023, it is expected to achieve a healthy growth of 4.6% in 2024. Excessive growth in IT equipment spending during the epidemic has led to a collapse in equipment spending in 2023. However, as the economy gradually recovers, demand for IT equipment is expected to rebound, bringing new growth opportunities to the industry.

Spending on data center systems and software continued to grow, with growth rates of 7.5% and 8.7% respectively. According to Gartner's forecast, the communications services industry has the lowest growth rate, accounting for only 2.3% of total IT spending.

While IT has traditionally been a back-office function, it has now become a major revenue line. “More than a decade ago, consumer adoption of devices and communications services stagnated. Consumer spending levels were primarily driven by price changes and replacement cycles, leaving only room for incremental growth, so being overtaken by software and services was impossible. Avoided," Lovelock said.

Gartner’s report reveals market opportunities and challenges. Businesses that can invest wisely in IT services will be well-positioned to reap long-term returns from this rapidly growing field.

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