---
title: "Gartner forecasts software market to hit $1.68 trillion by 2027, driven by GenAI spend"
slug: "gartner-forecasts-software-market-to-hit-1-68-trillion-by-2027-driven"
date: "2026-11-08"
category: "MarTech"
author: "Chloe Duval"
correspondent: "Chloe Duval"
correspondentRole: "GTM & Outbound Investigative Reporter"
readingTimeMinutes: 2
tags: ["MarTech"]
originalSourceUrl: "https://www.saastr.com/gartner-sees-software-growing-14-6-to-1-68-trillion-in-2027-models-at-117-ai-app-platforms-at-39-and-price-increases-doing-a-lot-of-the-work/"
canonicalUrl: "https://aurav.ae/gartner-forecasts-software-market-to-hit-1-68-trillion-by-2027-driven"
publisher: "Aura-V Intelligence (aurav.ae)"
---

# Gartner forecasts software market to hit $1.68 trillion by 2027, driven by GenAI spend

> Gartner’s latest IT spending outlook shows software growth to $1.68 trillion, with GenAI models expanding 117% and AI platforms 39%.

## Key Takeaways (TL;DR)

- Software spend rises to $1.68 trillion in 2027, adding $215 billion in a single year.
- GenAI model spend surges 117%, while AI application development platforms grow 39%.
- Price hikes and AI add-ons lift the overall 14.6% software growth rate, masking slower growth in many B2B apps.

Gartner’s October 21 forecast predicts worldwide IT spending will reach $7.35 trillion in 2027, a 15% rise, with software accounting for $1.68 trillion—up $215 billion from the previous year. The SaaS-focused analysis on SaaStr notes that software’s share of IT spend stays near 23%, while data-center share climbs from 14% to 19% [SaaStr by Jason Lemkin](https://www.saastr.com/gartner-sees-software-growing-14-6-to-1-68-trillion-in-2027-models-at-117-ai-app-platforms-at-39-and-price-increases-doing-a-lot-of-the-work/).

### AI-centric growth outpaces the overall market
Gartner’s sub-forecasts reveal that GenAI model spend is projected to grow 117% in 2026, up from an earlier 110% estimate. AI application development platforms are slated for 39% growth, a jump from the prior 28% outlook. Both categories sit within the $215 billion software increment, concentrating a large slice of the market in a few model providers and platform vendors.

### Price pressure and embedded AI lift the headline rate
The 14.6% overall software growth therefore reflects a mix of higher per-seat pricing, AI add-ons, and usage-based meters, while many traditional B2B applications grow well below that rate.

### Operational implications for large enterprises
The forecast also predicts that Global 500 firms will adopt real-time AI FinOps by 2028, shifting from retrospective cost reporting to continuous monitoring of token spend. By 2029, Gartner expects four in five new applications to be built for under a year’s use, driven by the 39% rise in AI dev platforms.

Our read: The headline software expansion masks a concentration of spend in high-growth AI models and platforms, amplified by price inflation. Enterprises that rely on legacy SaaS categories may see modest growth, while those positioned to sell AI-enhanced solutions stand to capture a disproportionate share of the $215 billion uplift.

## Aura-V Editorial Verdict

Gartner’s numbers confirm a robust software market, but the headline 14.6% growth masks a skew toward AI-heavy spend. Companies should scrutinize how much of the expansion is attributable to models, platforms and price inflation versus organic product adoption.

---

*Original Think-Tank Source: [Gartner Sees Software Growing 14.6% to $1.68 Trillion in 2027: Models at 117%, AI App Platforms at 39%, and Price Increases Doing a Lot of the Work](https://www.saastr.com/gartner-sees-software-growing-14-6-to-1-68-trillion-in-2027-models-at-117-ai-app-platforms-at-39-and-price-increases-doing-a-lot-of-the-work/)*