Worldwide Core IT Spending for GenAI Forecast, 2023-2027: GenAI Is Triggering Hyper-Expansion of AI Spending

This IDC study presents a five-year forecast for the core IT spending for GenAI market for the 2023-2027 period."Despite IT headwinds in 2023, businesses accelerated their exploration of GenAI to boost business transformation in 2023. In 2024, the shift to AI everywhere will enter a critical buildout phase with spending more than doubling to $40.1 billion and reaching $151.1 billion in 2027," said Rick Villars, group vice president, Worldwide Research at IDC.

IDC Market Forecast Figure

Executive Summary

Advice for Technology Suppliers

Market Forecast

• GenAI Foundation Build: 2023-2025
• Broad Adoption of GenAI Capabilities: 2025-2026
• Unified AI Services: 2026 and Beyond
• GenAI Investments Around the World

Market Context

• Drivers and Inhibitors
  • Drivers
    • Artificial Intelligence/Machine Learning Adoption and Scaling
    • Data Growth and Modern Data Environments
  • Inhibitors
    • Security and Data Sovereignty
    • Operational Efficiencies
• Significant Market Developments
  • Economic Downturn
  • Enablers of AI/ML and GenAI
• Changes from Prior Forecast

Market Definition

• AI Servers and Storage
• GenAI Ethernet Fabric-Enabled Datacenter Switches
• As a Service
• Artificial Intelligence Software
  • Artificial Intelligence Platforms
  • AI Applications
  • AI Application Development and Deployment
  • AI Systems Infrastructure Software
• Business Services
• IT Services

Methodology

Related Research