IT Services Spending to Cross the $5 Trillion Mark in 2024

In an era of rapid technological evolution, the landscape of Information Technology (IT) is set to achieve an extraordinary milestone in 2024. Businesses worldwide recognize the paramount role of IT services in fueling innovation and driving operational excellence. Consequently, IT services spending is anticipated to rise.

According to Stocklytics.com, IT services are expected to spend roughly $ 5.1 trillion by the end of 2024. The planned expenditure is a notable 8.5% increase from 2023’s $4.7 trillion spending.

The site’s financial analyst, Edith Reads, comments:

The augmented IT spending underscores the growing emphasis on novel technologies encompassing cloud computing, cybersecurity concepts, and artificial intelligence. The escalated momentum around these technologies is attributed to the foresight of the endless opportunities they could unravel in the forthcoming years. Developers and IT experts envision a world where technology dominates every sphere of our lives. Thus integrating seamlessly into our worldly systems. The increased spending is the first step towards attaining that dream world.

Stocklytics Financial expert, Edith Reads

Information Technology Spending In 2024

The trillion-dollar expenditure encompasses a spectrum of essential categories. These include data services, enterprise software, devices, IT, and communication services. Allocation plans for devices such as PCs, mobiles, and laptops amount to $1,049 billion, with communication services taking the lead. It utilizes the highest funds at $1,497 billion. Enterprise software closely follows, securing a budget of nearly $722.47 billion, while data center systems account for $260.22 billion in planned funding.

Advancements within the IT sector are strategically directed towards enhancing customer experience and fortifying privacy, with a significant focus on information security. A substantial portion of the budget, totaling up to $90 billion, is allocated for this purpose. This expenditure encompasses key domains such as cloud security, data security, application security, infrastructure protection, and risk management. 

Expressly, planned spending for cloud security amounts to $7,002.6 million, infrastructure protection is set at $33,319 million, data security at $4,333 million, and application security at approximately $6,670 million.

Generally, IT spending is on the rise in many countries worldwide. However, India’s planned spending outshines most of them. The IT industry in India contributes a significant 7.5%  to its GDP; hence, spending close to $227 billion in 2024 is necessary for its economic growth.

Future Revenue Projections for the New Technologies in the IT space

The IT space predicts that the public cloud computing market will bloom exponentially in the coming years. Experts expect the cloud computing sector to receive $679 billion in revenue in 2024 alone. Amazon Web Services, Microsoft Azure, and Google Cloud have the most significant adoption rates of cloud services. The incorporation of cloud computing by the prominent tech giants will drive other companies to do the same. Today, even Microsoft’s intelligent cloud segment revenue rivals the company’s long-established personal computing revenue.

Artificial intelligence is also expected to grow substantially and garner trillions by the start of 2032. The beginning of simple AI tools has sparked a revolution that will drive the unbattered growth of the it space.

The IT space is looking to receive massive success in the coming years, and the recent rise in spending is the first approach to achieving it.