Spending by the Information and Communication Technology sector in Europe will hit $1.2tn according to the International Data Corporation Worldwide ICT Spending Guide.
It stated that ICT spending in Europe would reach $1.2tn in 2023 and would surpass $1.4tn by 2026, posting a 5.4 per cent compound annual growth rate (CAGR) over the 2021 to 2026 period.
Overall European ICT spending was forecast to grow by 4.2 per cent year on year in 2023, driven by the Scandinavian countries and the United Kingdom. On the other hand, sanctions imposed by the EU and the growing number of companies leaving Russia would result in the Russian ICT market shrinking by 9.4 per cent year on year.
“While organisations 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.”
Software would be the fastest-growing technology group on a year-on-year basis, and investments in cloud-first solutions would drive the overall technology market in Europe in 2023.
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Software had proved to be highly resilient to the storm of disruptions currently impacting the continent, supported by rapid growth in the adoption of artificial intelligence platforms and software quality and lifecycle tools, as well as application platforms, integration and orchestration middleware, and collaborative applications.
Despite inflationary pressures and economic recession in several European countries, investments in IT and business services, telecom services, and hardware would continue to increase as well. However, the device market had suffered from the declining purchasing power of consumers, supply chain constraints, and cost-saving measures among enterprises, which is expected to result in an overall decline in device spending of 2.2 per cent in 2023.