03 Jul 2020
IDC Research Shows Slight Rebound in European ICT Spending, but Not Until 2021
FOR IMMEDIATE RELEASE, Prague — According to the June update of the Worldwide Black Book Live Edition published by International Data Corporation (IDC), European ICT spending will decline by 3.7% year on year in 2020 to total $897.08 billion. However, slight recovery of the ICT market is expected in 2021, when ICT spending in Europe will increase by 1.9% year on year, in line with the gradual recovery in macroeconomic conditions and consumer confidence.
All hardware markets will continue on a negative trajectory in 2020, with overall hardware spending declining by 4.07% year on year. Spending on infrastructure will be most affected, due to reduced business activity, focus on capital preservation, and expense reduction.
"During the Covid-19 crisis, there has been a boost in adoption of OPEX-based consuption models, which will drive spending on IaaS. The market is forecast to grow in the double-digits in both the short and long term," says Lubomir Dimitrov, senior research analyst with IDC's Customer Insights & Analysis team. Although demand in the PC market increased during the second quarter of 2020, annual spending in the overall hardware market will decline due to the global economic challenges among both consumers and businesses, resulting from the impact of the pandemic.
In 2020, the European IT services market is expected to decline by 4.2% year on year, as the current economic uncertainty is causing delays or reductions in existing projects, and investments planned pre-crisis are being postponed. Next year, the services market is expected to rebound slightly, with negligible annual growth of around 1%.
Spending on software in Europe is expected to slow down in 2020, declining by 2.61% year on year, as organizations try to limit their resources and place any projects on hold that are not crucial for maintaining core business activities. On the other hand, the increased adoption of the remote working/work from home model among public and private organizations gave a boost to spending on collaborative and communication tools, as well as on software security spending, as protecting devices and expanded networks became an urgent need.
The European software market will rebound slightly next year, with companies renewing some previously delayed digital transformation initiatives, particularly those relating to AI, analytics, and automation of business processes.
IDC's Worldwide Black Book Live Edition is updated monthly with the latest IT spending forecasts for annual growth across 100 countries. It will continue to evolve and capture the escalating impact of the coronavirus on market expectations.
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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.
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