Global IT investments are expected to total $5 trillion in 2024, marking a 6.8% increase from 2023, according to Gartner’s latest forecast. The largest growth, 12.7%, is anticipated in the software sector. These increases are attributed to optimization and efficiency projects, which are considered crucial during this period of economic uncertainty.

It should be noted that Gartner’s forecast at the beginning of this year is lower than the previous quarter’s forecast, which indicated an 8% increase in overall IT investments.

In 2023, the overall growth rate for IT investments was 3.3%, due to fatigue among those leading digital transformation efforts in organizations, caused by successive changes.

In 2024, however, things seem to be changing, with renewed interest in the IT sector. Despite this, those responsible for IT will think twice before signing new contracts, engaging in long-term initiatives, or forming new partnerships. For initiatives that must be implemented, there will be a greater need for assured results and risk mitigation measures.

Regarding artificial intelligence (AI), although it received massive promotion in 2023, it seems it will not significantly impact short-term IT investment growth.

According to Gartner, the software segment is expected to grow by 12.7% this year, representing the largest growth among all IT segments. This is followed by IT services, which will continue to see significant growth in 2024, increasing by 8.7% to reach $1.5 trillion.

Gartner estimates that software will surpass the nearly stagnant communications services sector by 2028, with the latter projected to grow by just 2.3% in 2024.

Additionally, the devices segment is expected to grow by 4.6% in 2024, following an 8.7% decline last year.

Gartner also predicts a 7.5% increase in investments in data center systems, reflecting a rise in on-premise strategies, partly driven by ongoing cost analyses of cloud solutions and the return on investment in cloud among IT leaders.

Here is the estimated global IT investment (in millions of dollars) according to Gartner:

Gartner’s research is based on a rigorous analysis of sales made by over a thousand IT product and service providers worldwide.