TECH SUPPLIER Nov 2016 - Pivot Table - Doc # EMEA40676016
Western European Government Sector IT Spending Forecast, 2015–2020
By: Massimiliano Claps
This IDC Government Insights Pivot Table provides an overview of IT spending trends and forecasts for the Western European government sector for 2015–2020 (base year: 2015). Government IT spending in Western Europe totals $46.4 billion and is expected to grow to $47.7 billion by 2020.
To download the pivot table, please click on "View Full Document" on the left-hand side tab of the research web page. This document comes with a downloadable pivot table including details of the specific IT spending patterns by:
- Major technology including hardware, software, and IT services
- Level of government: central government and local government
- Country, including specific details of the markets in France, Germany, Italy, Spain, the U.K., and the rest of Western Europe
- Subsectors/domains in government:
- Administration of the state and economic and social policy of the community (excluding fiscal administration)
- Administration of the state and economic and social policy of the community (tax and revenue)
- Compulsory social security activities
- Defense activities
- Fire services
- Foreign affairs
- Justice and judicial activities
- Public security, law, and order activities
For the methodology, definitions, exchange rates, and assumptions used in this forecast, please refer to the related worksheets in the pivot table. Smartphones and feature phones were included in this forecast's hardware spending, but were excluded from the 2015 forecast.
The analysis in this study summarizes key data in the pivot table to help readers get a better understanding of the overall IT spending of the Western European government sector and to compare it with previous forecasts.
The Western European government sector IT systems and related investments have been subjected to cost cutting and rationalization. But 2016 has been a turning point, with digital transformation now the key driver of government investment in technology. Enhancing the citizen experience, changing the operating model of government through improved cross-siloed collaboration, leveraging the value of data through open platforms — these are central to the EU Commission's eGovernment Action Plan 2016–2020, the Norwegian Ministry for Local Government and Modernization's "DigitalAgenda for Norway," Portugal's Agency for Administrative Modernization (Agência para a Modernização Administrativa, AMA) Simplex+ program, and the Danish Government, Local Government Denmark, and Danish Regions Digital Strategy 2016–2020, all of which were published in the first half of 2016. However, in the short term, the latent demand created by these new digital strategies will be slowed down by the economic impact of Brexit, which will result in lower tax revenues.
This translates into slow annual growth for IT spending of 0.7% between 2015 and 2020. The market will return to faster growth between 2018 and 2020 (see Figures 1 and 2).
Public administration and compulsory social activities are the largest subverticals in terms of IT spending. As shown in Figure 3, investment in public safety and security services will see fast growth, particularly in the short term, in response to immigration control, the fight against terrorism, and the crime agenda. IDC expects a strong focus on digital evidence management and analytical capabilities for police forces. At the local government level, smart city initiatives, particularly in the transport, public safety, and environmental sustainability areas, will be key drivers of investment.
A comparison between the previous forecast and the current study shows that overall spending and growth rates were lower than expected in 2015 (see Figures 5 and 6). The major difference since the 2015 forecast is the revision of IDC's overall forecast for IT spending across industries due to the impact of Brexit (see Figure 4).
Software expenditure is the only market category that will continue experiencing sustained growth, at 4.3% CAGR, driven by middleware platforms, Big Data and analytics, and the emergence of cognitive and next-generation security investments.
IDC Government Insights: European Government Citizen Services , IDC Government Insights: European Government Digital Transformation Strategies