Increased Inflation and Lower Consumer Confidence Will Negatively Impact Devices Market in Europe in 2022
According to the new Worldwide Black Book: Live Edition published by International Data Corporation (IDC), the European ICT market will grow year on year by 3.5% in 2022 in constant currency terms, exceeding $1,000 billion by the end of this year. In contrast, the market achieved 6.9% annual growth in 2021. Latest news about Europe IT market find out below.
While the overall European ICT market will grow, poor performance by devices will inhibit total growth dynamics. High levels of inflation and energy prices, as well as the increasing cost of living, will result in reduced demand for PC and tablets among consumers.
The war in Ukraine is also causing product shortages in the device segment, leading to a double-digit value decline in Central and Eastern Europe (CEE). Other supply chain issues stem from lockdowns in China and high costs of transportation, which are expected to be long-term inhibitors.
“During the COVID pandemic, consumers were spending more disposable income on devices,” says Lubomir Dimitrov, senior research analyst for IDC Data & Analytics. “In the post-pandemic period, however, effects such as inflation and lack of consumer confidence are going to dampen the device market.”
Despite the expected negative trends on both Russian and Ukrainian software markets, overall software spending in Europe will remain relatively stable during the next couple of years. Many international software vendors are winding down business activity on the Russian market or leaving altogether, causing the suspension of many digital transformation projects.
Overall, demand will increase for AI platforms and applications in Europe, as a part of digital transformation initiatives. The importance of security solutions will continue to grow, along with robotic process automation, event process management, and supply chain management. The need to shift CAPEX to OPEX in an uncertain environment with constrained budgets will continue to drive the switch from on-premises to cloud deployment. Robust growth in Russia will be supported by local services providers, despite the fact that they are challenged by a lack of infrastructure and sufficient servers to equip their datacenters.
IDC’s Worldwide Black Book: Live Edition is updated monthly with the latest IT spending forecasts for annual growth across 100 countries. Europe IT market
