IDC forecasts a whopping $1.4 trillion in European ICT spending
European ICT spending will reach $1.1 trillion in 2022 and close to $1.4 trillion by 2026, driven by software investments, according to forecast by IDC, a telecoms market research firm.
August 2, 2022
European ICT spending will reach $1.1 trillion in 2022 and close to $1.4 trillion by 2026, driven by software investments, according to forecast by IDC, a telecoms market research firm.
Growing at 5% (CAGR) between 2021–2026, the technology investment will be predominantly driven by spending in software, underpinned by the growth seen in “artificial intelligence platforms, collaborative applications, and software quality and life-cycle tools.” according to the IDC report.
However, the report states the hardware sector, impacted by inflation, an expected recession, as well as the Russia-Ukraine war, will decline 0.1% this year. Most evidently impacted will be spending on devices as Europe is hit with a cost-of-living crisis and product shortage as well as suspended shipments, although of course the latter isn’t a European only issue.
In terms of sectors, consumer, banking and discrete manufacturing are forecast to be the biggest spenders, taking up almost 46% of total ICT spend this year combined, driven by a desire to achieve process automation to minimise disruptions from the aforementioned crisis.
Source: Worldwide ICT Spending Guide Enterprise and SMB by Industry 2022, July V2 2022