Europe ICT Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

Europe ICT Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

Europe's ICT Market is expected to register a CAGR of 12.5% over the forecast period (2022 - 2027). Increasing demand for digitization and scalable IT infrastructure is anticipated to drive the market's growth in the European region.

Key Highlights

• According to the European Commission's economic strategy, information and Communication Technologies (ICTs) are one of the key drivers for smart, sustainable, and inclusive growth. ICTs and the internet permeate the European economy, the increased use of broadband applications and services, and the spread of wireless devices, including smart devices and their applications. They are transforming the structures and dynamics of European society by enabling people to organize their lives and businesses in new ways, build global networks, manage information and learn, socialize, and contribute to the pool of online knowledge.
• The government is also initiating certain changes in the development of the European ICT sector. For instance, In April 2022, the European Commission released the 2022 Rolling Plan for ICT Standardisation. The Rolling Plan consists of four thematic areas supported by about 170 actions for ICT standardizations these types of intiatives drives the market growth.
• Additionally, European ICT is estimated to be one of the emerging markets in the future, which requires hardware, software, and other IT services. The increasing penetration of technology giants in the country to take advantage of the Privatization in Europe.
• People's spending on computers and screens has increased as the IT sector has developed. Increased technology usage to stay productive, communicate, enjoy, and study through larger displays drives the market growth. The rise of competitive gaming platforms like e-sports and the growing popularity of virtual gaming are driving demand and growth in the hardware devices such as computers, laptops, and tablets. It is challenging to overcome the market's high industrial competitiveness among enterprises to accept improved technology to provide users with more current displays at the lowest possible price.
• While the COVID-19 epidemic has influenced European digital transformation, businesses are realigning their IT strategy, reducing operational expenses, automating operations, and deploying new technologies to increase efficiency. Robotic process automation, big data, artificial intelligence, machine learning, blockchain, cloud computing, the internet of things, cybersecurity, and augmented/virtual reality are all assisting businesses in achieving these goals.

Key Market TrendsIncreasing Demand for Digitalization and Scalable IT Infrastructure

• Users have received significant benefits from digital services, and new commercial opportunities have emerged. They have the potential to expand customer choice while also improving efficiency and competitiveness. Large platforms have evolved in the delivery of digital services, and they are critical structural components of today's digital economy.
• Consumer Internet of Things (IoT) related products and services will increase significantly in the coming years. The consumer IoT industry includes consumer items and services that are network-connected and may be operated remotely via a voice assistant or mobile device. According to European Union, the overall number of smart home devices in the Union was about 108 million at the end of 2019 and is expected to reach 184 million by 2023.
• The European Government also monitors the ICT offering devices, services, and companies. The Commission's Directorate-General for Competition closely monitors the information industry, consumer electronics, and internet sectors to ensure that market players comply with EU competition law.
• In terms of significant technology adoption, companies promoted using digital solutions during the Covid pandemic. According to European Commission, the utilization of cloud computing has reached 34 %. However, commercial utilization of AI and Big Data is only at 8 % and 14 %, respectively (target 75 % by 2030).
• According to the European innovation scoreboard, which measures innovation in Europe through a variety of different indicators, Finland had the highest score when it came to 'use of information technologies in 2021, a category that measures how much enterprises within a country are actively increasing the ICT skills of their personnel the level of ICT specialist employment.

United Kingdom is Expected to Register the Fastest Growth

• The managed services require the organization to outsource certain portions of its IT needs to a third-party service provider. Companies may reduce spending, increase productivity, and improve performance without investing time in IT infrastructure deployment, maintenance, and upgrades.
• Domestic outsourcing is a practice in which companies want to outsource services to suppliers in their home nation. They choose nearshore suppliers when outsourcing overseas because of proximity, language, cultural similarities, and small time differences. For example, Infinity Group, a UK-based firm, is one of the industry's leading IT outsourcing organizations, offering outsourced IT assistance to over 1000 enterprises across the UK. Clients range from fast-growing start-ups and SMEs to well-established bigger enterprises, including well-known national chains.
• The Bank of England expects 40-90 % of bank workloads to be hosted in the public cloud or as software-as-a-service within the next ten years. It's vital to analyze the impact on business continuity if one of those suppliers fails, and financial authorities in the UK and throughout the world are keeping a close watch on this, including the Bank of England, the Financial Conduct Authority (FCA), and the Prudential Regulation Authority (PRA). This will provide new prospects for the UK IT services.
• According to Boosteroid, between January and December 2021, Uk was by far the fastest growing market for cloud gaming service Boosteroid. During the measured period, the service increased its number of active users in the country by 78 %.
• According to the Open UK, In 2021, 68 % of respondents stated using Amazon Web Services (AWS) for their cloud infrastructure. Google and Microsoft Azure take the next place. Notably, the market share of these providers is bigger in larger companies. Medium-sized and smaller companies prefer VMware, IBM, and OVH.

Competitive Landscape

The Europe ICT Market is highly competitive, owing to the presence of several global players. These players are focusing on further expanding their client base across the region and are adopting both organic and inorganic growth strategies. The companies are leveraging strategic collaborative initiatives, acquisitions, and product launches to increase market share and profitability.

February 2022 - Lenovo IdeaPad Gaming 3i and Lenovo IdeaPad Gaming 3 laptops were launched at MWC 2022. Lenovo is aimed at student gamers. The company offers laptops in 15-inch and 16-inch display size options. The company provides an option to customers to purchase the laptops with either (up to) 12th Gen Intel Core i7 processors or AMD Ryzen 6000 Series chipsets.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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