Gartner Forecasts Worldwide IT Spending to Grow 4.3% in 2023

Inc., which projects that global IT expenditure will reach $4.7 trillion in 2023, with software and generative AI spending increasing while device spending declines due to macroeconomic factors.

Inc.

Global IT expenditure is projected to rise by 4.3% in 2023
Software industry is expected to see significant growth
Generative AI is highly valued by business and IT leaders

In 2023, it is projected that global IT expenditure will amount to $4.7 trillion, indicating a 4.3% rise compared to the previous year, says Gartner Inc. As CIOs encounter difficulties in attracting skilled IT professionals, they are reallocating their funds towards technologies that encourage automation and effectiveness to stimulate growth with a reduced workforce. The emphasis of digital business transformations is shifting from outward-facing outcomes such as revenue and customer experience to internal improvement endeavors.

In 2023, the software industry is expected to see significant growth as companies enhance their usage and redirect funds towards essential applications and platforms that enhance productivity, like enterprise resource planning (ERP) and customer relationship management (CRM) applications. Moreover, the increase in vendor prices will also play a role in driving up software spending.

However, devices spending is projected to decline by 8.6% in 2023 due to the ongoing impact of inflation on consumer purchasing power. This decline is expected to continue until at least 2026, as macroeconomic factors negatively affect discretionary spending and lengthen device refresh cycles.

Although generative artificial intelligence (AI) is highly valued by business and IT leaders, it has not yet had a major impact on IT spending. In the future, generative AI will mainly be integrated into businesses through existing spending channels. By upgrading existing tools that are already included in IT budgets, most enterprises will be able to gradually and carefully adopt generative AI.

Gartner’s IT spending forecast methodology relies on rigorous analysis of sales data from over a thousand vendors across the entire range of IT products and services. Primary research techniques, supplemented by secondary research sources, are used to build a comprehensive database of market size data for accurate forecasting.

This article is based on public information provided by Gartner

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About Gartner Inc:

Gartner is a important global research and advisory firm that offers valuable insights, analysis, and guidance to businesses and individuals across a wide range of industries. for its comprehensive research reports, market analysis, and expert advice, Gartner assists organizations in making informed technology-related decisions, strategic planning, and staying updated on emerging trends. With a reputation for thought leadership and data-driven insights, Gartner plays a pivotal role in shaping the technology landscape and aiding professionals in navigating complex market dynamics to achieve their goals.