ICT spending in Europe will reach $1.2 trillion in 2023 and will surpass $1.4 trillion by 2026, posting a 5.4 percent compound annual growth rate (CAGR) over the 2021-2026 period, IDC report said.
ICT spending in Europe is forecast to grow by 4.2 percent in 2023, driven by the Scandinavian countries and the United Kingdom. ICT market in Russia will shrink 9.4 percent in 2023.
“While organizations in most countries are anticipating a recession this year, the outlook for European ICT spending remains positive,” says Zsolt Simon, Senior Research Analyst at IDC. “They regard technology investments as a means of gaining a competitive edge, as well as providing solutions for many of the challenges arising in an extremely volatile market.”
The consumer sector will be the largest source of ICT spending in 2025, representing almost 28 percent of total European ICT revenue, though growth will remain below 1 percent.
Banking and discrete manufacturing will take the second and third positions, respectively, in the ranking of highest spending industries, accounting for a combined market value of over $210 billion.
Manufacturing companies will invest in technologies to ensure cost-effective operations, handle increasing amount of data, and reduce pressure on staff through robotics and process automation robotic process automation (RPA).