German, Austrian, and Swiss ICT Spending Will Reach $275 Billion This Year as Investment Focus Shifts to AI
The Worldwide ICT Spending Guide by International Data Corporation (IDC) indicates that the DACH region’s (Germany, Austria, and Switzerland) ICT spending will increase to $275 billion in 2023, and will surpass $330 billion by 2026, with a compound annual growth rate (CAGR) of 6.4% between 2021 and 2026. dach ict spending
The growth in ICT spending in the DACH region is expected to exceed the European average of 5.4%, despite market disruptions caused by the Russia-Ukraine War, rising energy prices, and labor shortages. This growth is likely to be driven by investments in technologies that can sustain growth, reduce costs, optimize processes, and enhance customer experiences, even in uncertain times.
Artificial intelligence is expected to be one of the fastest-growing investment areas, with spending on AI platforms growing by 46.6% in the DACH region between 2021 and 2026. This investment will be aimed at mitigating skills shortages and improving customer and employee experience.
Discrete manufacturing, professional services, and the banking industry are expected to spend the most on AI platforms in the current year, while the healthcare, insurance, and telecommunications industries are projected to increase their investments in AI platforms at the fastest rate into 2026. To remain competitive, businesses in the DACH region need to stay alert and rely on data to continuously evaluate risks and opportunities in the face of these disruptions.
Spending on security will be a key priority for organizations in the DACH region. With a 14.8% CAGR between 2021 and 2026, the insurance industry will increase security software investments the most rapidly. Cloud and IoT will also see steady growth toward 2026, with 23.2% and 11.1% CAGR respectively.
To tackle the disruption, businesses can learn from successful AI implementations in various industries in the DACH region. For example, in the banking industry, chatbots powered by AI technology are being used to improve customer service and provide 24/7 support. In healthcare, AI-powered diagnostic tools are helping doctors make faster and more accurate diagnoses. To overcome labor shortages, businesses can upskill their workforce by investing in training programs and partnering with educational institutions.
