Omdia: IT Opportunity to Reach $8.2 Trillion by 2031 Amid Rising Budgets

Rhea-AI Summary

Omdia research projects global IT budgets to reach $12 trillion by 2031, with $8.2 trillion representing investment opportunities and $3.8 trillion going to staff costs and operational expenses. IT budgets will grow from 4.2% of corporate revenue in 2024 to 4.5% by 2031.

Applications will remain the largest IT budget category, increasing by $1.3 trillion. The rise of AI as co-pilots and agents will influence spending, reducing staff cost proportions and slowing hiring rather than causing mass layoffs.

IT budgets surged in 2024 due to rapid generative AI adoption, with notable spikes in infrastructure investments. A slight contraction is expected in 2025 as businesses focus on automation rather than expanding IT headcount.

The CloudOps market, valued at $18.3 billion in 2023, is projected to exceed $38 billion by 2030. The enterprise IT opportunity will grow from $5.06 trillion in 2024 to $8.2 trillion by 2031, with Applications seeing the largest growth at $1.1 trillion.

Positive

• Global IT budgets projected to reach $12 trillion by 2031
• IT investment opportunities to reach $8.2 trillion by 2031
• IT budgets growing as percentage of corporate revenue (4.2% in 2024 to 4.5% by 2031)
• Applications segment to increase by $1.3 trillion by 2031
• CloudOps market expected to more than double from $18.3B in 2023 to over $38B by 2030

Negative

• IT budgets expected to slightly contract in 2025
• Slower growth in staff costs as businesses focus on automation
• Potential layoffs or hiring freezes across the industry
• Management category will see lowest growth ($400B increase by 2031)
• 'Black swan' events could introduce greater volatility to forecasted growth

Insights

Financial Analyst

Omdia's projection of global IT budgets reaching $12 trillion by 2031 presents a complex landscape of opportunities and challenges for TechTarget (TTGT), a company specializing in B2B technology marketing and intent data services.

The forecasted growth in IT spending as a percentage of corporate revenue (from 4.2% to 4.5%) signals an expanding addressable market for TTGT. This is particularly significant given that applications—a key focus area for TTGT's marketing services—represent the largest growth category with a projected $1.3 trillion increase. However, the anticipated slight contraction in 2025 IT budgets warrants closer scrutiny, as technology vendors might temporarily reduce marketing expenditures, potentially pressuring TTGT's near-term revenue growth.

The GenAI revolution creates a double-edged sword for TTGT's business model. The company's core value proposition relies on capturing and monetizing purchase intent data from IT professionals researching technology solutions. As GenAI transforms IT operations and decision-making processes, TTGT must evolve its data collection and analysis capabilities to remain relevant. The projected reduction in IT staff growth doesn't necessarily mean fewer decision-makers, but rather a shift in how and where purchase decisions are researched and made.

TTGT's recent quarterly results have shown uneven performance, with revenue challenges in certain segments. The company's ability to capitalize on the $3.14 trillion growth in enterprise IT opportunity by 2031 will depend on successfully adapting its intent data services to track the evolving IT purchase journey, particularly as GenAI becomes more embedded in the decision process.

The CloudOps market doubling to $38 billion by 2030 represents a specific growth vector for TTGT, as cloud vendors will need targeted marketing to reach the right decision-makers. However, TTGT faces increasing competition from alternative data providers and marketing platforms that are also evolving their AI capabilities.

Investors should monitor TTGT's product innovation roadmap, particularly how they're incorporating AI into their own offerings to deliver more actionable intent data. The company's ability to maintain its competitive edge in this rapidly evolving landscape will be important for long-term growth prospects amid this expanding but increasingly complex IT spending environment.

LONDON--(BUSINESS WIRE)-- Recent research from Omdia reveals that global IT budgets are projected to reach $12 trillion by 2031, with $8.2 trillion representing IT investment opportunities. The remaining $3.8 trillion will be allocated to staff costs and other operational expenses.

Figure 1: Total IT budgets by 2031 (Graphic: Business Wire)

Omdia forecasts that IT budgets will continue to grow as a proportion of corporate revenue, rising from 4.2% in 2024 to 4.5% by 2031. Applications will remain the largest IT budget category increasing by $1.3 trillion over this period.

The rise of AI as co-pilots and agents is expected to influence IT spending, reducing the proportion allocated to staff costs. However, rather than triggering mass layoffs, this shift will likely lead to a slowdown in hiring as IT headcount growth lags behind business expansion. Ultimately, AI-driven efficiencies will enable IT teams to support business growth while maintaining leaner staffing levels.

IT budgets experienced a significant surge in 2024 exceeding previous forecasts. This sharp increase was fueled by the rapid adoption of growth in generative AI (GenAI) as enterprises rushed to keep up with this fast-evolving technology. The most notable budget spikes were in infrastructure investments with organizations either acquiring GPU-enabled capabilities and expanded storage or leveraging cloud IaaS and PaaS for model training and application development.

Omdia expects IT budgets to slightly contract in 2025, though IT spending will continue to claim a growing share of corporate budgets. The primary driver of this dip is slower growth in staff costs, as businesses focus on automation and GenAI-driven efficiencies rather than expanding IT headcount. For example, Meta announced a 5% workforce reduction in January 2025, and similar layoffs or hiring freezes are anticipated across the industry.

As GenAI automates more tasks, CIOs are expected to optimize existing IT teams rather than significantly expand them enabling businesses to scale operations without proportional increases in staffing.

IT budgets will continue to grow as a share of organizational revenue reaching 4.5% globally by 2031. However, spending varies significantly by company size. In 2024, the average IT budget stands at approximately $9 million for small to medium businesses, $75 million for enterprises, and $1.1 billion for large organizations.

According to Omdia’s Chief Analyst Roy Illsley, “The CloudOps market remains in flux, with a mix of emerging startups, established vendors expanding their management capabilities, and acquisitions in adjacent markets acquiring the technology. Omdia’s projects that the CloudOps market, valued at $18.3 billion in 2023, will more than double to over $38 billion by 2030.”

The enterprise IT opportunity - representing the portion of IT budgets allocated to technology products and services – is set to grow from $5.06 trillion in 2024 to $8.2 trillion by 2031, a $3.14 trillion increase (see Figure 2). Among IT sub-categories, Applications will see the largest spending growth, rising by $1.1 trillion, while Management will experience the lowest growth, increasing by $400 billion over the same period.

Illsley further noted: “Many CIOs recognize that embedded GenAI in management tools and solutions will simplify their use. As a result, IT budgets are shifting, internal spending on IT staff is expected to grow more slowly than other budget areas, freeing up funds to address other business challenges. However, if these expected benefits fail to materialize, discretionary IT spending will likely be reduced.”

“The forecast indicates steady growth from 2024 to 2031, but the impact of ‘black swan’ events could introduce greater volatility,” concludes Illsley.

ABOUT OMDIA

Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225552113/en/

Fasiha Khan- fasiha.khan@omdia.com

Source: Omdia

FAQ

What is the projected size of global IT budgets by 2031 according to Omdia?

According to Omdia, global IT budgets are projected to reach $12 trillion by 2031, with $8.2 trillion representing IT investment opportunities and $3.8 trillion allocated to staff costs and operational expenses.

How will IT budgets change as a percentage of corporate revenue by 2031?

Omdia forecasts that IT budgets will grow from 4.2% of corporate revenue in 2024 to 4.5% by 2031, indicating increased corporate investment in technology.

What impact will generative AI have on IT staffing according to the Omdia report?

Rather than triggering mass layoffs, generative AI will likely lead to a slowdown in hiring as IT headcount growth lags behind business expansion, enabling IT teams to support growth with leaner staffing levels.

Which IT budget category will see the largest growth by 2031?

Applications will remain the largest IT budget category, increasing by $1.3 trillion between 2024 and 2031, according to Omdia's research.

How much is the CloudOps market expected to grow by 2030?

The CloudOps market, valued at $18.3 billion in 2023, is projected to more than double to over $38 billion by 2030.

How do IT budgets vary by company size in 2024?

In 2024, the average IT budget stands at approximately $9 million for small to medium businesses, $75 million for enterprises, and $1.1 billion for large organizations.

Why are IT budgets expected to contract in 2025 according to Omdia?

IT budgets are expected to slightly contract in 2025 primarily due to slower growth in staff costs, as businesses focus on automation and GenAI-driven efficiencies rather than expanding IT headcount.