The European ICT spending will grow by 3 percent in constant currency terms in 2023, reaching a value of $1,046.8 billion, according to IDC.
The European ICT spending is projected to experience a compound annual growth rate (CAGR) of 5.4 percent during the period of 2022 to 2027, IDC’s Worldwide Black Book: Live Edition states.
The growth of the market will be primarily driven by software and services, although certain hardware categories are expected to decline, leading to a slowdown in overall growth.
Factors such as Europe’s economic slowdown, inflation, and high interest rates have had a significant impact on consumer and business confidence, consequently affecting ICT spending. Caution among customers is anticipated to affect the devices market, with a projected decline of 9.4 percent in 2023 compared to the previous year. However, as inflation subsides, there is an expected modest recovery in the last quarter of 2023, particularly for consumer PCs.
European businesses are determined to advance their digital transformation initiatives to enhance market performance and build resilience. Cloud deployments are predicted to increase in order to support business continuity and disaster recovery plans.
Investments in security solutions will remain a priority as companies aim to safeguard themselves against cyberattacks and comply with new regulations. Software and Infrastructure-as-a-Service (IaaS) adoption will be significant drivers of spending, as organizations strive for innovation and cost reduction.
Lubomir Dimitrov, a software research manager at IDC, affirms that the European ICT market displays resilience even in times of volatility and economic uncertainty. He believes that the overall performance of the ICT market could be even better this year, with software and services expected to maintain strong positive growth, although certain hardware categories’ poor performance may impede overall growth.