Industry research firm IDC says that ICT spending in Europe will reach $1.2 trillion in 2023 and will surpass $1.4 trillion by 2026, posting a 5.4% compound annual growth rate (CAGR) over the 2021-2026 period with the UK and Scandinavia leading the way.
► Sales to reach $1.2 trillion this year
► UK and Scandinavia leading the way
Overall European ICT spending is forecast to grow by 4.2% year on year in 2023. Despite the anticipation of recession, the outlook for European ICT spending remains positive. IDC said that technology investments are seen as a means of gaining a competitive edge and addressing the challenges arising in volatile markets.
In 2023, software will be the fastest-growing technology year-on-year, and investments in cloud-first solutions will drive overall growth. Rapid adoption of artificial intelligence (AI) platforms and software quality and lifecycle tools, as well as application platforms, integration and orchestration middleware, and collaborative applications are driving wider software sales. Investment in IT and business services, telecom services, and hardware will also continue to increase. However, an overall decline in device spending of 2.2% is expected in 2023.
The consumer sector will continue to be the largest source of ICT spending in 2025, representing almost 28% of total European ICT revenue, although year-on-year growth will remain below 1%, as the increasing cost of living is taking a toll on consumer purchases.
In the commercial world, banking and discrete manufacturing will be the biggest spenders with a combined market value of over $210 billion. In the former, the focus will be on accelerating automation, database management, and resource management. AI will be leveraged to offer more flexible and more personalised services for improved customer experiences. In manufacturing, companies will invest to drive cost-efficiency, manage more data, and in robotics and process automation (RPA).
The figures come from IDC’s Worldwide ICT Spending Guide: Enterprise and SMB by Industry report.
