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Publication date: 30 Mar 2023

ICT Spending in Germany, Austria and Switzerland Will Reach $275 Billion This Year, as Investment Focus Shifts to AI, Says IDC

FRANKFURT, March 30, 2023 — According to International Data Corporation's (IDC) Worldwide ICT Spending Guide: Enterprise and SMB by Industry, ICT spending in the DACH region (Germany, Austria and Switzerland) will reach $275 billion in 2023 and will surpass $330 billion by 2026. With a 6.4% compound annual growth rate (CAGR) for 2021–2026, growth in ICT spending in the region will exceed the European average (5.4%).

Investments in technologies will continue despite unprecedented market disruptions caused by the Russia-Ukraine War. A strong reliance on Russian gas is increasing economic vulnerability in Austria, Germany, and Switzerland, and higher costs of living will impact consumer purchasing power. Organizations in the DACH region will need to cope with increasing prices for technologies, as well as serious labor shortages and a lack of IT skills.

"As we're slowly recovering from a year of struggling with unprecedented market disruption, our expectations for the future are becoming brighter," said Zsolt Simon, senior research analyst, IDC. "However, the positive predictions and the better-than-expected economic performance may create a false sense of stability. Labor shortage will rage on and energy prices will remain elevated, so businesses need to stay alert and rely on data to continuously evaluate the risks and opportunities."

To tackle the disruption, investments will be shifted to technologies that can sustain growth by reducing costs, improving performance, optimizing processes, and enhancing customer experience, even in uncertain times. Artificial intelligence, which can significantly improve customer and employee experience and mitigate skills shortages, will be one of the fastest-growing investment areas. Spending on AI platforms, such as AI software services and AI life-cycle software, will grow 46.6% in the DACH region between 2021 and 2026. Discrete manufacturing, professional services, and the banking industry will spend the most on AI platforms this year, while investments by the healthcare, insurance, and telecommunications industries will increase at the fastest rate into 2026.

Spending on security will be a key priority for organizations in the DACH region. With 14.8% CAGR between 2021 and 2026, the insurance industry will increase security software investments the most rapidly. Cloud and IoT will also see steady growth toward 2026, with 23.2% and 11.1% CAGR respectively.

About IDC's Worldwide ICT Spending Guide: Enterprise and SMB by Industry

The Worldwide ICT Spending Guide: Enterprise and SMB by Industry, previously known as the Worldwide Semiannual ICT Spending Guide by Industry and Company Size, is IDC's flagship all-in-one data product capturing IT spending across more than 100 technology categories and 53 countries. It provides a granular view of the market for IT spending from country, industry, company size, and technology perspectives. This comprehensive database, delivered via pivot table or IDC's custom query tool, enables users to easily extract meaningful information about various technology markets and industries by viewing data trends and relationships and making data comparisons across more than 3 million data points.

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 1,300 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 Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.