Agentic AI to Claim 26% of Global IT Budgets by 2029
Agentic AI is projected to account for 26% of worldwide IT spending within five years, driven by a 32% annual growth rate, according to IDC.
Market intelligence firm IDC forecasts that Agentic AI will dominate IT budgets over the next five years, accounting for 26% of worldwide IT spending. The surge in investment is expected to grow at a 32% year-over-year rate from 2025 to 2029, potentially reaching $1.3 trillion (£960.7m) by 2030.
Key Highlights:
- Unprecedented Growth: Agentic AI-enabled applications and systems to manage agentic fleets are driving this spending surge.
- Platform Solutions: Investments will be bolstered by platforms that help businesses build, manage, and operate AI agents more securely and efficiently.
- Infrastructure Spend: Service providers are projected to account for 80% of infrastructure spend to support the rise in agentic workloads.
- AI Agents Proliferation: Enterprises could see a 10x increase in the number and complexity of third-party and custom-built AI agents.
Industry Impact:
- Software Industry Shifts are expected as AI-enabled applications grow faster than other segments.
- Service Providers will be most affected, with enterprises increasing spending on agentic AI, transforming IT business services.
- Non-AI IT Spending (e.g., servers, storage) may face reduced growth due to diverted funds toward AI initiatives.
Expert Insight:
Rick Villars, IDC’s Group VP for Worldwide Research, emphasized:
"Application and services providers that are behind in putting AI into their products and not extending them with agents are risking market share losses.""
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About the Author
Michael Rodriguez
AI Technology Journalist
Veteran technology journalist with 12 years of focus on AI industry reporting. Former AI section editor at TechCrunch, now freelance writer contributing in-depth AI industry analysis to renowned media outlets like Wired and The Verge. Has keen insights into AI startups and emerging technology trends.