European spending on traditional hardware, software, services and telecommunications is set to reach $921.9 billion in 2020, IDC reports-- an increase of 2.2%, slightly down from the 4.1% growth seen in 2019.
According to the analyst, IT spending annual growth in Europe should also cool from 6% in 2019 to 3% in 2020, the result of economic challenges from the global economic downturn. In addition, Brexit creates an uncertain scenario in the technology market, while the global market will negatively impact the market in both W. Europe and CEE. That said, annual IT and telecom spending is set to exceed $994bn by 2023, thanks to growth in the software and services markets due to an increasing number of 3rd Platform and digital transformation (DX) projects. However development on the PC and tablet, peripherals and server markets will prove an impediment on overall market growth.
The European PC market finishes 2019 with 7.5% growth, stemming mainly from increased spending in the commercial sector. Such growth comes from the Windows 7 end-of-life cycle and PC upgrade demand. The tablet market, on the other hand, sees decline by end 2019, but should see "modest" long term growth as tablets figure prominently in many DX scenarios.
The infrastructure market (including network equipment) registers 16% growth in 2019, and maintains a healthy growth pace over the 5-year forecast period. Spending on service providers and constantly growing cloud service demand keeps the growth of the infrastructure market stable, despite the slow growth (if not decline) in some sub-categories such as storage and servers.
Go Growth of European IT and Telecom Market Will Slow In 2020, According to IDC
