The Impact of the New U.S. Administration on the European ICT Market: An Initial Assessment, February 2025

This IDC Market Perspective examines how the new U.S. administration's policies are shaping the IT landscape in Europe. The report analyzes the challenges and opportunities in areas such as trade dynamics, economic conditions, and technological progress. It provides insights into how these factors are influencing European IT markets, considering:Europe's evolving relationships with the U.S. and other global playersMacroeconomic trends affecting the IT sectorAI policies, initiatives, and regulationsPotential trade frictions and tariff impacts on technology imports/exportsGovernment initiatives in defense technology, digital sovereignty, and cloud computingESG policies and regulations shaping IT industry practicesInnovation trends and their effects on various IT-dependent industries"The evolving landscape necessitates resilient strategies for European IT organizations to leverage strengths and address challenges in the global market," said Lapo Fioretti, senior research analyst, Digital Economy Strategies, Emerging Technologies, and Digital Regulations, IDC.


Executive Snapshot

New Market Developments and Dynamics

The New U.S. Administration's Impact on the European Digital Landscape: Challenges and Opportunities

European Digital Economy Outlook

Initial Response: The EU Competitiveness Compass

IDC's Perspective

Trade and Tariffs Reshuffling Globalized Supply Chains

AI Policies

Updated Government IT Spending Agendas

Accelerating the Creation of Sovereign Public Cloud

Sustainability and GreenOps

Talent and Innovation: A Shifting Landscape

Policy Reversals and Their Global Implications

Innovation Depends on Diversity and Mobility

Regulations Policies: The Growing U.S.-EU Divide

Digital Regulations

Ethical Business and Governance

Growing Pressure on the Fragile Telco and Networking Landscape

Advice for the Technology Suppliers

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Synopsis

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