European ICT Spending Will Remain Resilient in 2023
April 24, 2023 | IDCEstimated reading time: 1 minute
According to the Worldwide Black Book: Live Edition published by International Data Corporation (IDC), ICT spending in Europe is expected to grow by 2.8% year on year in 2023 in constant currency terms, reaching $1,184.5 billion. Despite the challenging macroeconomic climate, software and services investments will continue to grow, exceeding the growth of overall ICT spending. Cloud migrations will accelerate, as many companies will try to mitigate the adverse effects of the impending recession and its accompanying disruptions. Platforms such as AI and business intelligence will continue to receive heightened attention as they enable organizations to attain a competitive edge. During turbulent geopolitical situations, companies typically increase investments in security solutions, due to intensified cyberattacks and emerging regulations.
However, continued inflation in many countries, weakening consumer confidence, and export disruptions has created uncertainty that is adversely affecting some hardware markets, mainly PCs, tablets, and monitors. The first signs of recession in some European countries and the subsequent slowing business activity will also negatively affect the server and storage infrastructure markets, which are projected to record a year-on-year decline in 2023.
Infrastructure spending (excluding infrastructure as a service) via indirect channels is expected to decline in Europe by 1.2% year on year in 2023. By 2026, almost half of server and storage spending will continue to be generated through the channel. "Partners will continue to help vendors in maintaining robust connections with customers, in order to address the ever-evolving customer needs for holistic solutions rather than delivering infrastructure components," says Lubomir Dimitrov, research manager with IDC Data & Analytics, Europe.
The increased emphasis on digital transformation has resulted in changes in customers' expectations, driving the demand for customized multi-vendor solutions that cater to specific customer segments and industries. This resulted in increased spending flow from indirect sales through partners. Spending on software and services is expected to continue driving overall market growth. By the end of 2023, approximately 58% of software spending — i.e., applications, application development and deployment, and system infrastructure software — is forecast to go through the channel. However, the increasing number of companies transitioning to cloud will continue to make the direct channel an important source of revenue generation to vendors.
Suggested Items
Micross, Sital Announce Global Manufacturing & Distribution Partnership
05/07/2024 | Micross Components, Inc.Micross Components, Inc., a leading global provider of mission-critical microelectronic components and services for high-reliability aerospace, defense, space and industrial applications, is pleased to announce our exclusive partnership with Sital Technology (sitaltech.com), the leader in MIL-STD-1553 IP cores, specializing in integrated FPGA solutions.
Hirose Launches Solution Partner Network to Address Changing Design Challenges
05/06/2024 | HiroseHirose, a leader in the design and manufacturing of innovative connector solutions, has established a Solution Partner Network that enables OEMs to quickly explore product design, specialty IP, and component fulfillment options that best suit their needs.
Cigent, Swissbit Announce Partnership to Enhance Endpoint Data Security
05/06/2024 | CigentCigent, a leading provider of endpoint data protection solutions, and Swissbit, a leading manufacturer of storage, security, and embedded IoT solutions, today announced a strategic partnership to offer a comprehensive portfolio of secure storage drives designed to safeguard endpoint data against a growing landscape of cyberthreats.
SCHMID Group Closes Business Combination, Begins Trading on NASDAQ
05/02/2024 | SCHMID GroupGebr. SCHMID GmbH, a global solutions provider for the high-tech electronic, photovoltaics, glass, and energy systems industries, and Pegasus Digital Mobility Acquisition Corp. announced the completion of their business combination.
Real Time with… IPC APEX EXPO 2024: Sigma Engineering's Recycling and Regeneration Systems for PCB Etching
05/02/2024 | Real Time with...IPC APEX EXPOEvan Howard of Schmoll America interviews Kristoffer Bjorklund, Sigma Engineering's supply chain manager. We learn about Sigma's recycling and regeneration systems for PCB industry etching and the benefits and challenges of implementing these systems in existing factories.