The Numbers
Gartner's October forecast puts worldwide software spend at $1.679 trillion in 2027, up 14.6% from $1.464 trillion in 2026. That is $215 billion added in one year, second only to data centres in absolute growth.
Software holds steady at 23% of total IT spend. Data centres jump from 14% to 19%. The $7.35 trillion IT market is growing 15%, and AI infrastructure is taking the share gains.
What's Actually Growing
The 14.6% blends everything. The sub-forecasts show how lopsided it is.
GenAI models: 117% in 2026. Gartner raised its forecast from 110% to 117%. Model spend sits in the software line. A short list of providers is capturing a large slice of that $215 billion.
AI app-dev platforms: 39%. Gartner lifted the 2026 growth rate from 28% to 39%. Enterprises, software companies, and services firms are building custom apps. That spend goes to platforms, not app vendors.
Incumbent embedded AI. Gartner says buyers are purchasing simpler AI features from existing vendors first. The AI SKU on your system of record gets bought before the new point solution.
Price increases. Gartner analyst John-David Lovelock said it last year: "The cost of software is going up and both the cost of features and functionality is going up as well thanks to GenAI." A meaningful share of the 14.6% is the same seats at higher prices, plus AI add-ons and usage meters.
With models above 100%, AI platforms at 39%, and price increases layered on top, plenty of standard B2B apps are growing well below the average.
What This Means for Your Number
Gartner's broader AI-spending forecast puts AI software at $461.6 billion in 2026 and $656.4 billion in 2027. GenAI models rise from $28.3 billion to $51.6 billion over the same period. The $1.68 trillion figure is a market-spending estimate, not an addressable market for any one vendor.
Before planning 2027 around 14.6% growth, work out how much of that $215 billion goes to models, AI platforms, and incumbent price increases, and how much is left for your category. If you are selling undifferentiated software without an AI angle, your growth rate is probably much lower than the headline.
Buyers Are Watching Usage
Gartner predicts Global 500 firms will move from retrospective cost reporting to real-time AI FinOps by 2028. Agents calling vendor APIs around the clock can multiply a usage bill fast. Once a FinOps team audits those calls, a lot of them turn out to be redundant, and that usage revenue goes away.
Gartner also predicts that by 2029, four in five new apps will be built for use under a year, because AI makes it easy for employees to create temporary applications. Pair that with AI app-dev platforms growing 39%. The departmental tool, the internal tracker, and the niche workflow app now get built in an afternoon by the person who needs them. That spend still counts as software in Gartner's table, but it goes to the platform, not the app vendor.
ANZ Context
Australian and New Zealand technology buyers are part of the enterprise market adopting cloud, AI platforms, cybersecurity, and data tools. Gartner's forecast is global, but the dynamics apply locally: budgets are concentrating on platforms that help enterprises deploy, govern, and measure AI rather than on undifferentiated software. ANZ sales teams should expect the same lopsided growth, the same price pressure, and the same buyer scrutiny on AI usage costs.
Software adds $215 billion next year. The opportunity is substantial but uneven. Most of it is spoken for.