European IT-spend to grow 21% in 2025
IT spending in Europe will grow 21% next year and reach a total of $1.28 trillion. European IT spending is on pace to reach $1.18 trillion by the end of 2024, according to a forecast by market research firm Gartner.
“In 2024, the surge of building out AI-related infrastructure by technology providers is driving high levels of spending on data centre systems in Europe,” says John-David Lovelock, Gartner VP.
“CIOs in Europe will continue investing in public cloud end-user spending, which is estimated to reach $123 billion in 2024, and grow their security spending, projected to reach $47 billion in 2024.”
The company says that European businesses that have recognised IT’s value during the pandemic are set to significantly boost IT spending in 2025 to stay competitive and grow revenue.
“Aided by a surging interest for generative AI solutions, CIOs in Europe will drive their IT budgets into an era of high growth and innovation. 2025 is poised to set a record as the highest growth rate in IT spending in a single year in Europe since the post-pandemic surge in 2021”, the forecast says.
“The limited success of many pilots and proofs of concept (POCs) in 2024, will push European organisations to shift from building their own GenAI solutions to buying and implementing partner solutions in 2025,” Lovelock says.
Gartner estimates spending on IT services related to AI in Europe will grow from $78 billion in 2024 to $94 billion in 2025.
“End-user spending on servers in Europe is estimated to grow 25% in 2024 due to increased demand for AI-optimised servers. Spending on servers will continue to grow in 2025 but at a slower pace (11%).”
“Europe has seen a remarkable 46% increase in server spending by technology providers in 2024. In 2025, technology companies will continue building out the infrastructure needed for training GenAI models today and inferencing them in the future,” said Lovelock.
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