Publication date: 20 Jun 2023
European ICT Spending to Expand Through 2027, Despite Prevailing Economic Challenges, Says IDC
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For more information, contact:- Lubomir Dimitrov Email: ldimitrov@idc.com Phone number: +359 888936456
PRAGUE, June 20, 2023 — European ICT spending is expected to post a compound annual growth rate (CAGR) of 5.4% over the 2022–2027 period, according to International Data Corporation (IDC). In a clear indication of the resiliency of the European ICT market, IDC’s Worldwide Black Book: Live Edition reports the market will grow 3% in constant currency terms in 2023, rising to $1,046.8 billion.
IDC says software and services growth will propel the market upward; however, some hardware categories are forecast to decline, slowing overall growth.
Europe’s economic slowdown, inflation, and high interest rates continue to weigh on consumers and businesses, impacting ICT spending. Customer cautiousness is expected to impact the devices market, which is projected to decline 9.4% year on year in 2023. Nevertheless, as inflation recedes, a modest rebound is anticipated in last quarter of 2023 for some products, including consumer PCs.
European businesses will move forward with digital transformation initiatives to improve their market performance and build resiliency. Cloud deployments are projected to increase in support of business continuity and disaster recovery plans.
Investments in security solutions will remain a priority as companies act to protect themselves from cyberattacks and comply with new regulations. Software and IaaS adoption will be major spending drivers as organizations pursue innovation and cost reductions.
"There is a clear sign that the European ICT market remains resilient even amidst periods of volatility and economic uncertainty," says Lubomir Dimitrov, software research manager with IDC. "The performance of the overall ICT market could be even better this year, as technology areas like software and services are expected to maintain a strong positive trajectory, while the poor performance of certain hardware categories will impede overall growth."
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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 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, 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.