05 Jun 2021

European Software Market Resilient in the Face of Covid, Says IDC

Prague, June 5, 2021 — In 2020, the European software and public cloud services market grew by 6.7% year on year, bucking initial skepticism about how the market would perform during a global pandemic. Across the whole of Europe, total software spending reached $161.12 billion. At the outset of the COVID-19 outbreak, the most common cynical conjectures concerned how much markets would decline for the year. Full market data for 2020, however, points toward an entirely different scenario — initial forecasts of strong contraction were later replaced by those predicting healthy growth. Market results are covered in detail in the European Semi-Annual Software Tracker, recently published by International Data Corporation.

"Interestingly, the global pandemic had an encouraging effect on European companies. Rather than freeze spending and wait, many of them opted to accelerate their DX initiatives and cloud migrations which drove investment", says Tom Vavra, associate vice president with IDC's European Software Group. "Cloud really was the key, and the more cloud-oriented the vendor, the more likely it performed well in 2020." While total European software market growth, including on-premises deployments, did grow by 6.7%, the cloud market in Europe increased by 22.0% over 2019.

What was in demand during 2020 will come as no surprise. Firstly, organizations needed to assess their employee needs in a pandemic scenario and find ways to respond and adapt. Similarly, they needed to respond to a different marketplace for products and services. All of which required enhanced security to keep things running safely. IT solutions in areas such as human capital management, advertising and marketing campaign management, sales force productivity, and customer service applications surged throughout the year. At the backend, endpoint security and identity and digital trust were in high demand. Moreover, many found themselves reassessing what the Future of Work might look like for the foreseeable and uncertain future. "Collaborative and Team apps, along with content sharing, is what everyone needed more of last year," says Vavra. "But growth was somewhat tempered by the fact that many providers offered access to new users for free to help them get through trying times. On the other hand, this has created a large user base that will present new revenue streams going forward."

*All market size and growth percentage numbers are in constant currency.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

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.