In 2025, European know-how spending will witness a major uptick, rising 5% to achieve a monumental €1.4 trillion. Software program and IT providers seize three-quarters of tech spend, a notable rise from its 68% share in 2016. Cloud computing, cybersecurity, generative AI, and the burgeoning digital economic system will drive a lot of the expansion. Highlights of European tech spending progress embody:
- Software program spending. Software program will see 10.4% progress and can seize greater than a 3rd of Europe’s tech spend by 2029. Enterprise adoption of cloud providers are accelerating, with 45% of European enterprises utilizing cloud computing in 2023, up from a 41% share in 2021. SAP’s EMEA software program and cloud revenues point out strong demand, with 12.5% progress in 2024. The AI progress alternative is critical, as solely 11% of EU enterprises had been utilizing AI in 2024. AI software program spend in EU-5 is rising at twice the speed of the software program market.
- {Hardware}. Demand for AI-capable servers and the transition to Home windows 11 following the tip of help for Home windows 10 assist drive 10% {hardware} progress in 2025. Firms similar to Dell and Lenovo reported robust income progress in 2024, and that pattern is predicted to proceed in 2025.
- IT providers. IT providers will see modest 2.9% progress in 2025, as corporations like Capgemini, which generates 63% of its revenues from Europe, and Accenture noticed slower progress in 2024. Infrastructure as a service stays a vivid spot, serving to outsourcing seize a bigger share of the IT providers market.
- Markets in transition. The European telecom market, characterised by its fragmentation, will consolidate as corporations optimize prices and obtain economies of scale. Europe faces the twin problem of enhancing productiveness to compete globally whereas balancing the environmental impression of elevated tech adoption. Investments in AI, sensible buildings, and the digitalization of sectors similar to healthcare and automotive are key to addressing these challenges. Though the EU is presently falling wanting its digital transformation plans, the extra that international locations put money into intangible items like software program, the extra they rework their economies. Eire, the Netherlands, Belgium, Sweden, the UK, France, and Switzerland focus extra on high-value-add actions.
With a give attention to software program, cloud providers, and AI, Europe is poised for important tech-driven progress, supplied it navigates the complexities of adoption, consolidation, and sustainability. To study extra about find out how to steadiness these competing elements and to see the numbers behind Europe’s forecasted €1.4 trillion tech spend in 2025 (which accounts for 31% of worldwide tech spend), Forrester shoppers can learn our new report, European Tech Market Forecast, 2024 To 2029. Different related forecasts embody our US and international tech spend forecasts for 2024 to 2029.
