Worldwide IT spending is expected to reach $7.35 trillion in 2027 up 15% from 2026 according to latest forecast by Gartner business and technology insights company. Gartner analysts discussing trends impacting IT market during Gartner IT Symposium/Xpo.
With AI Investment Accelerating Across Technology Stack IT Spending Will Cross $7 Trillion Mark For First Time. Gartner IT spending forecast methodology relies heavily on rigorous analysis of sales by over thousand vendors across entire range of IT products and services uses primary research techniques complemented by secondary research sources to build comprehensive database of market size data.
"Collectively, the market forces are reinforcing spend around AI infrastructure, AI-enabled cloud platforms and advanced software ecosystems, as these are the most attractive opportunities in global IT spending," said John-David Lovelock, Distinguished VP Analyst at Gartner. "Increasingly, the growth of the digital economy is being determined not only by software adoption, but also by the ability to finance, build and monetize AI infrastructure at an unprecedented scale."
Next $1 trillion dollars in IT spending growth being shaped by two interconnected AI domains AI infrastructure and AI software spending on AI-optimized servers AI-optimized infrastructure as a service IaaS and AI software platforms continues to strengthen as organizations seek to industrialize AI deployment at same time hardware markets experiencing growing pressure from memory-related inflation.
"This 'memflation' effect is expected to persist through 2027 before hardware pricing begins to stabilize," said Lovelock. "While higher average selling prices continue to support spending growth, the resulting pressure on affordability is expected to suppress end-user demand throughout the forecast horizon."
"Backed by hyperscaler capital expenditure, private capital funding, financing initiatives and in some cases the technology suppliers themselves, AI infrastructure is emerging as both a technology platform and an investable asset class," said Lovelock. "As a result, spending on AI infrastructure, AI cloud services, AI platforms and AI-enabled software is expected to reach explosive highs throughout the forecast period, underpinning sustained growth in the broader IT market."
About Gartner
Gartner delivers actionable, objective business and technology insights that drive smarter decisions and stronger performance on an organization's mission-critical priorities.
