Information and communication technology (ICT) spending in Europe will soar to $1.1 trillion in 2024, with a forecast to surpass $1.3 trillion by 2027, IDC said. This growth trajectory indicates a compound annual growth rate (CAGR) of 5.3 percent over the span of five years from 2022 to 2027.
The surge in ICT spending in Europe is due to the increasing demand for software and business services, fueled by the necessity for remote collaboration tools, enhanced security measures, and the rapid integration of artificial intelligence across various sectors.
Despite facing persistent challenges, European industries are expected to witness a momentum in ICT spending in 2024, buoyed by a gradual alleviation of macroeconomic pressures. Notably, countries like Sweden, Finland, and Norway are anticipated to experience the fastest growth in the ICT market this year, driven by a robust base of software companies that are spearheading digital innovation initiatives.
Romania is likely to grapple with a decline in overall ICT market value, primarily due to soaring inflation rates which have led to a significant reduction in the market value of devices, consequently resulting in a marginal downturn in total ICT spending.
Zsolt Simon, senior research analyst at IDC Europe, remarked, “Despite concerns surrounding inflation and energy prices, coupled with geopolitical tensions and an economic slowdown, European businesses can find solace in the resilience of ICT investments, which are poised for growth across all industries.”
Zsolt Simon emphasized the pivotal role of the software and information services sector, foreseeing a surge in spending fueled by advancements in generative artificial intelligence (GenAI) technology in the coming years.
Within the commercial segment, industries such as oil & gas, software and information services, and healthcare payers are anticipated to witness a combined year-on-year spending growth of 9 percent in 2024, surpassing the overall business-to-business (B2B) ICT spending growth rate of 6.6 percent.
Particularly, the energy sector is expected to register substantial growth in ICT spending as it embarks on a journey towards diversification of energy sources and compliance with environmental regulations, necessitating digital upgrades.
Furthermore, software and information services organizations are projected to continue their heavy investments in cloud solutions and AI tools, particularly focusing on the adoption of generative artificial intelligence (GenAI) in areas such as chatbots, language processing, and coding. This is anticipated to drive investments in software solutions like customer relationship management (CRM) applications and collaborative tools.
Despite being the smallest in terms of total value, the healthcare payer industry is poised for robust ICT spending growth through 2027, leveraging technological advancements in health insurance systems to deliver safer, more flexible, and reliable services to clients.
