According to International Data Corporation’s (IDC) Worldwide ICT Spending Guide Enterprise and SMB by Industry, ICT spending in Europe will reach US$1.1 trillion in 2022 and will get close to US$1.4 trillion by 2026, growing at a 5% five-year 2021–2026 CAGR.
Investments in software will drive most technology spending in Europe in 2022 and software will be the fastest-growing technology group by year-on-year growth, supported by fast growth in Artificial Intelligence platforms, collaborative applications and software quality and lifecycle tools. With investments in cloud-first solutions, the software market has remained resilient to factors that impacted the hardware market, which is expected to decline 0.1% this year. Inflationary pressures, an expected recession and the Russia-Ukraine war are dampening demand for hardware in Europe. Spending on devices will be the most impacted by the increasing cost of living, product shortages and suspended shipments.
Consumer, banking and discrete manufacturing will be among the top spenders in ICT, absorbing almost 46% of overall ICT spend in 2022. Europe is affected by supply chain disruptions, many of which are linked to the war in Ukraine. This is affecting many industries, which are turning to automation to optimise processes and minimise disruption. Banking will be focusing on transformative processes that focus on automation and customer-centricity to redefine how financial services deliver employee and customer experiences, supporting and reimagining core banking services, risk management, HR and talent management and audit and compliance through automation.
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