03 Apr 2020

IDC Says Europe ICT Market to Fall Nearly 4% Due to COVID-19 Pandemic

Prague, FOR IMMEDIATE RELEASE — The COVID-19 pandemic is expected to lead to a 3.9% year-on-year plunge in European ICT market spending in 2020, according to the new Worldwide Black Book Live Edition from International Data Corporation (IDC).

The new forecast, published April 1, says total European ICT market spending will be worth $934.29 billion in 2020 — a 6.5% decline in value from the Black Book estimate published in February, before the COVID-19 outbreak was declared a pandemic by the World Health Organization.

IDC projects that the market may not recover until 2022 due to the pandemic and a concurrent crash in oil prices.

Hardware vendors are being especially hard hit by disrupted supply chains and halted Chinese factory production. Increases in device prices, raw materials, and infrastructure components will compound declining consumer and business demand stemming from social distancing measures.

IDC projects that software spending, originally expected to grow 7.3% in 2020, will now be flat this year. The mobile phone market is forecast to fall by 19.4% year on year, printing devices and peripherals by 13.1%, and infrastructure investments by 6.9%. Business services and IT services are expected to contract by 8.3% and 3.5%, respectively, due to pandemic-related social and business lockdowns and travel restrictions.

Organizations will focus first on their survival and making the investments necessary to stabilize operations and adapt to the rapidly emerging new business environment. Project services, large systems integration projects, and digital transformation initiatives are likely to be postponed.

"The pandemic situation is revealing the digital maturity of sectors and organizations,” says Ivana Slaharova, a research manager for the Customer Insights & Analysis (CI&A) team at IDC EMEA. “Distributed remote working is gaining importance but its implementation, at least initially, may be a significant challenge for many companies.”

CI&A senior research analyst Lubomir Dimitrov notes that organizations will be obligated to provide the necessary equipment and training to help employees adapt to emerging new working environments and systems.

“Demand for collaboration tools and conferencing applications is expected to rise,” Dimitrov says. “It won’t be enough, however, to offset softening demand for traditional licensed software. The system infrastructure software segment will be among the most negatively hit.” About IDC Spending Guides


The Worldwide Black Book Live Edition is being updated monthly in its entirety on April 1st, May 1st and June 1st 2020 with the latest IT spending forecasts for annual growth across 100 countries and 24 ICT technologies. The frequency of update will continue to evolve and capture the escalating impact of the coronavirus on market developments and predictions.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.


Regions Covered

Western Europe

Topics Covered

COVID-19, Global IT and economic markets