Digital Lifescapes

As we move deeper into 2025, the global technology sector is at a crossroads of innovation acceleration and market recalibration. The latest Gartner forecast projects worldwide IT spending to reach $5.43 trillion this year, marking a 7.9 percent increase over 2024. Despite the global economic uncertainty and lingering market caution, organizations are forging ahead with Cloud Computing adoption, and especially Artificial Intelligence (AI) driven transformation. Let's explore where new investment is flowing, what’s guiding decision-makers, and how key technology trends will define the global IT trajectory through the rest of the decade. Enterprise IT Market Development Data Center Systems experience 42.4 percent growth, a historic surge linked directly to global investments in AI-ready infrastructure. Software and IT Services remain pillars of growth, showing significant expansion as organizations persist in their digital transformation journey. Device spending, including PCs and mo...

The global IT server market is undergoing a transformation, fueled by the insatiable demand for cloud computing and artificial intelligence (AI) infrastructure. As organizations across industries race to harness the power of advanced AI models, the underlying hardware ecosystem is experiencing unprecedented growth and innovation. The latest worldwide IDC market study offers a compelling view, revealing record-breaking numbers and the strategic technology shifts shaping the future of enterprise computing. Cloud Server Market Development The most striking statistic from IDC’s 2025 analysis is the sheer scale and velocity of market expansion. The worldwide server market is projected to reach $366 billion in 2025, representing a 44.6 percent increase over 2024. This surge is not a one-off anomaly; it is the culmination of several quarters of explosive growth, with the first quarter of 2025 alone recording $95.2 billion in server sales --that's up 134.1 percent year-over-year (YoY). Key...

There is a pivotal shift within the global smartphone market. Recent data from IDC highlights a more cautious outlook for 2025, with projected worldwide smartphone shipments seeing a significantly reduced growth rate. This revised forecast underscores the intricate interplay of global economic factors and geopolitical dynamics on pervasive personal communication devices. IDC's latest update projects a mere 0.6 percent growth in worldwide smartphone shipments for 2025, a stark reduction from the earlier 2.3 percent expectation. Global Smartphone Market Development This recalibration is largely attributed to prevailing economic uncertainties, including inflationary pressures and rising unemployment, alongside the persistent specter of tariff volatility. Despite these global tensions, it's interesting to note that the United States and China are still identified as the primary drivers of this modest growth. China, a critical market, is forecast to achieve a 3 percent year-over-yea...

From my vantage point, few areas are evolving as rapidly and with such profound implications as the space sector. For decades, satellites were essentially fixed hardware – powerful, expensive, but ultimately immutable once launched. That paradigm is undergoing a transition driven by Software-Defined Satellites (SDS). A recent market study by ABI Research underscores this transition, painting a picture of technological advancement and a fundamental reshaping of global connectivity, security, and national interests. LEO SDS Market Development The core concept behind SDS is deceptively simple yet revolutionary: decouple the satellite's capabilities from its physical hardware. Instead of launching a satellite designed for a single, fixed purpose (like broadcasting specific frequencies to a specific region), SDS allows operators to modify, upgrade, and reconfigure a satellite's functions after it's in orbit, primarily through software updates. The ABI Research report highlights ...

The growth trajectory of artificial intelligence (AI) enterprise applications continues to accelerate, and its impact on global IT infrastructure spending is also remarkable. The recent market study by International Data Corporation (IDC) provides compelling evidence of AI's explosive growth and implications for the Global Networked Economy . By 2028, global investment in AI infrastructure is projected to surpass the $100 billion mark, underscoring the technology's pivotal role in shaping the future of business and society. Artificial Intelligence Infrastructure Market Development This growth is not a sudden phenomenon but rather the result of sustained investment over time. The AI infrastructure market has experienced double-digit growth for nine consecutive half-years, with no signs of slowing down. In the first half of 2024 alone, organizations increased their spending on compute and storage hardware infrastructure for AI deployments by 37 percent year-over-year, reaching an...

As an independent management consultant, I've had a front-row seat observing how emerging technologies are transforming industries across the globe. One trend that can no longer be ignored is the rise of Augmented Reality (AR) and Virtual Reality (VR). According to the latest ABI Research forecast, the global AR and VR markets are poised for explosive growth over the next six years, projected to increase 60 percent and 44 percent respectively from 2024 to 2030. AR and VR Apps Market Development The implications of this forecast are significant. We are on the cusp of a new era where immersive digital experiences will revolutionize how we work, learn, receive healthcare, manufacture products, and entertain ourselves online.  A potent fusion of AR/VR hardware and software innovations -- combined with Artificial Intelligence (AI) capabilities -- is supercharging these emerging technology applications. "Together with continual improvements in hardware, allowing for more user-friend...

The European Artificial Intelligence (AI) and Generative AI (GenAI) market will reach $47.6 billion in 2024 and record a compound annual growth rate (CAGR) of 33.7 percent over the 2022-2027 forecast period. Europe represents around one-fifth of the global AI market according to the latest worldwide market study by International Data Corporation (IDC). While the share of GenAI reached only 9.6 percent of the total European AI market in 2023, it is increasing rapidly. Investment in GenAI will grow more than three times as fast as spending on the rest of the artificial intelligence market. As a result, GenAI will be more than a quarter of the European AI market in 2027. European AI Market Development Software will be the largest technology segment in 2024, with a market value higher than hardware and services combined. Furthermore, software is expected to have the fastest growth during 2022-2027, driven by demand for AI applications and platforms. The share of hardware technologies will...

The growing need for real-time, localized artificial intelligence (AI) processing power drives demand for Generative AI (GenAI) solutions on public cloud edge computing platforms. Worldwide spending on edge computing is forecast to reach $232 billion in 2024 -- that's an increase of 15.4 percent over 2023, according to the latest market study by International Data Corporation (IDC). Combined enterprise and service provider spending across hardware, software, professional services, and provisioned services for edge solutions will sustain strong growth through 2027 when spending is forecast to reach nearly $350 billion. Edge Computing Market Development IDC defines edge as the information and communications technology (ICT) related actions performed outside of the centralized data center, where edge computing is the intermediary between the connected endpoints and the core enterprise IT environment. Characteristically, edge computing is distributed, software-defined, and flexible. T...

The once-quiet hum of the warehouse is being overtaken by a new rhythm – the whirring wheels and gentle beeps of mobile robots. As eCommerce booms and customer expectations soar, the pressure is on for faster, more efficient online purchase fulfillment. Warehouse automation has mostly been taken on by big organizations with deep pockets, but growing accessibility and maturing vendors are allowing solutions to trickle down and grow through the market.  According to the latest worldwide market study by ABI Research, the global installed base of Autonomous Mobile Robots (AMRs) in warehouses will surpass 500,000 by 2030. Mobile Robotics Market Development "There are now many options to automate a warehouse. Both stationary and mobile automation solutions have continued to expand to new form factors and are becoming more effective as Artificial Intelligence (AI) processing grows," said Ryan Wiggin, industry analyst at ABI Research . After their year in the spotlight with high-prof...

In 2024, every business can be a technology-driven business. The quest for business technology leadership skills, and digital transformation, will gain new momentum as more organizations seek ways to drive net-new digital growth. Large enterprises will invest more than $19.4 billion worldwide in Generative Artificial Intelligence (GenAI) solutions in 2023, according to the latest market study by International Data Corporation (IDC). This spending, which includes GenAI software as well as related infrastructure hardware and IT or business services, is expected to more than double in 2024 and reach $151.1 billion in 2027 -- that's with a compound annual growth rate (CAGR) of 86.1 percent over the 2023-2027 forecast period. Artificial Intelligence Market Development Despite the recent IT headwinds in 2023, business leaders accelerated their exploration of GenAI solutions to help boost their digital business transformation. "In 2024, the shift to AI everywhere will enter a critic...

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve...

Recent news headlines may not instill confidence in the overall Global Networked Economy, but that doesn't discourage spending on Digital Transformation initiatives that are focused on creating new  business models. IT market performance remained patchy in April, with some vendors experiencing a sharp decline in growth while others continued to benefit from long-term enterprise commitment to digital business. According to the latest worldwide market study by International Data Corporation (IDC), overall growth this year in constant currency will reach 4.8 percent to $3.27 trillion -- that's a slight improvement, which reflects the continued IT services market performance. IT Services Market Development IT services growth this year will be almost 6 percent, as large enterprises remain committed to long-term digital transformation investments despite the recent short-term economic turbulence. Overall software spending growth will be almost 11 percent, driven mostly by cloud soft...

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth...

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year...

The 5G Core (5GC) mobile network infrastructure is the first to operate solely in the software layer. A new study finds that cloud-native Evolved Packet Core (EPC) functions and 5GC are key drivers for new telecom value creation and growth. With the ongoing adoption of cloud-based packet core networks, it is the first time the telecom industry has relied on the core network to introduce something above and beyond enhanced mobile broadband (eMBB). According to the latest worldwide market study by ABI Research, cloud packet core revenue will grow from $11 billion in 2022 to reach $16 billion in 2027. Telecom Network Cloud Market Development In a modular and increasingly disaggregated ecosystem characterized by vertical and horizontal openness, technology choices for software, hardware, and services that underpin packet core buildouts are fundamental for CSPs to expand existing MBB business and explore new growth opportunities. ABI Research now forecasts that, for MBB, core network applic...

Virtual Reality (VR) market growth is now finally coming to fruition. Thanks to current actions and market momentum, VR is approaching what can be considered critical mass. And, not a moment too soon. This growth momentum comes from new hardware and content releases, accelerating enterprise value recognition, and a significant metaverse wild card that could potentially lift adoption and usage. According to the latest worldwide market study by ABI Research, over 85 million VR Head Mounted Displays (HMDs) will be shipped in 2027 across consumer and enterprise segments, creating a $100 billion VR market that includes hardware, software, and services. Virtual Reality Market Development "Expectations have been high in VR for years, and even decades, without notable growth to show. That growth is finally coming over the next five years," said Eric Abbruzzese, research director at ABI Research . The barrier to entry is lower than ever, all while content performance and user experien...

Real-Time Location Systems (RTLS) are underutilized in many factories, warehouses, hospitals, and smart offices. Moreover, the typical systems offered by IT solution providers leverage standalone software deployments with proprietary hardware. However, IT hardware costs will drop as more customers abandon proprietary systems to reduce vendor lock-in, increase application interoperability, and reduce the initial deployment costs, according to the latest market study by ABI Research. As a result, the sector will diversify and complement hardware sales by monetizing deployments through service models augmented by additional software features -- such as analytics and device management. Real-Time Location Systems Market Development According to the latest ABI Research market forecast, RTLS service revenue will be worth $3.7 billion in 2022 and will rise to $24.9 billion by 2030, at a compounded annual growth rate (CAGR) of 26.8 percent. "As RTLS hardware, such as tags and anchors, beco...

Business technology investment no longer follows a predictable path to growth. The global venture capital (VC) investment in artificial intelligence (AI) was close to its peak in 2021 reaching $22.3 billion, according to the latest worldwide market study by ABI Research. This is just $400 million shy of the historical high of $22.7 billion recorded in 2019. Compared to the $15 billion recorded in 2020, the market made a remarkable recovery, with a 48.5 percent year-on-year growth. Will the future AI marketplace return to stable growth, or will it remain volatile? Artificial Intelligence Market Development "COVID-19 greatly accelerated the speed of digital transformation within the enterprise. Businesses are looking for solutions to work processes automation, customer care, due diligence, transcription and translation, and sales and marketing enablement tools," said Lian Jye Su, research director at ABI Research . At the same time, COVID-19 led to the Great Resignation of 2021...

Global cybersecurity spending within critical infrastructure sectors is forecast to reach $23 billion by the end of 2022, that's growing at a 10 percent CAGR to reach $36.67 billion in 2027 -- according to the latest worldwide market study by ABI Research. "Businesses, industries, and in fact the entire world, have never been more connected than they are right now. They have also never been more at risk," said Michela Menting, research director at ABI Research . Organizations and key verticals continue to integrate technologies such as the Internet of Things (IoT), 5G wireless networks, and blockchain-based distributed ledgers -- creating more points of connection, and more points of cyber-security vulnerability. Critical Infrastructure Security Market Development ABI Research has explored the cyber and digital security landscape in its entirety. Their analysis explores actionable cybersecurity trends and market growth forecasts from their ongoing research. According to t...

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc...