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STAMFORD, Conn., February 23, 2021

Gartner Forecasts Global Government IT Spending to Grow 5% in 2021

Government Spending on Devices and Software to Record Highest Increases Year-Over-Year

Worldwide government IT spending is forecast to total $483 billion in 2021, an increase of 5.1% from 2020, according to the latest forecast by Gartner, Inc.

“Government organizations continue to be challenged with the appropriate level of interventions to respond and recover from the COVID-19 pandemic,” said Irma Fabular, senior research director at Gartner. “Public health and safety measures, including vaccinating citizens are of paramount concern, which necessitate governments to continue to accelerate their digital transformation journey.”

Three segments are on pace to exceed the overall market growth in 2021. The software segment, which includes application, infrastructure, and vertical-specific software, will experience the strongest growth in 2021. “Governments are innovating at a quicker pace by adopting commercially available technology solutions for operational and mission critical needs,” said Ms. Fabular. “We are seeing innovative use of technology and data to control and respond to the pandemic, as well as provide financial and humanitarian assistance.”

As government organizations continue to embrace remote work and hyperconnected public services, spending on devices is expected to grow 5.6% in 2021, up from 1.6% growth in 2020 (see Table 1).

Table 1. Government IT Spending Forecast by Segment, 2020-2021, Worldwide (Millions of U.S. Dollars)

Segment

 

2020

Spending

2020

Growth (%)

2021

Spending

2021

Growth (%)

IT Services

160,043

4.8

168,639

5.4

Software

108,212

8.9

118,149

9.2

Telecom Services

63,935

-0.5

67,200

5.1

Internal Services

63,927

1.0

62,423

-2.4

Devices

33,029

1.6

34,875

5.6

Data Center

30,279

5.7

31,514

4.1

Total

459,425

4.2

482,800

5.1

Source: Gartner (February 2021)

“The COVID-19 pandemic exposed weaknesses in the ability of government organizations to quickly respond, scale and secure essential services,” said Ms. Fabular. “Lessons learned from the responses by government organizations provide the impetus to increase resiliency and build for a stronger future for its citizens and businesses.”

In 2021, government budgets will continue to address recovery and growth needs of communities and businesses. In addition, investments to address digital equity and access to remote government services will be prioritized.

Gartner clients can get more information in “Forecast: Enterprise IT Spending for the Government and Education Markets, Worldwide, 2018-2024, 4Q20 Update.”

Learn more about expected challenges and next steps for CIOs and IT leaders in response to the COVID-19 pandemic in the Gartner ebook Top Priorities for IT: Leadership Vision for 2021.

About Gartner

Gartner, Inc. (NYSE: IT) delivers actionable, objective insight to executives and their teams. Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization’s most critical priorities. To learn more, visit gartner.com.

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