Software demand drives the European IT market

12/12/2011 - Software demand drives the European IT market

  • Pan-European software revenues increase to over 70 billion euros -
  • Overall IT market to grow by 2.7 per cent next year -
  • Debt crisis impacts IT investments


Berlin, December 12, 2011

The demand for software drives the EU IT market. In 2012, revenues from system software and applications are expected to increase by 4.6 per cent to in excess of 70 billion euros. This was announced by the European Information Technology Observatory (EITO) in Berlin on the basis of the new EITO report. Overall, the European IT market is expected to grow again by 2.7 per cent in 2012 to 320 billion euros, after declining marginally this year by 0.6 per cent. “Expenditure for IT hardware in particular fell short of expectations in 2011, due to the noticeable economic decline in Europe as well as the radical changes on the PC market”, says Dr Axel Pols, Chairman of the EITO Taskforce.

The weak economy and increased uncertainty are depressing IT demand especially in those countries most severely affected by the crisis. Thus the Greek IT market contracted by twelve per cent this year to 1.5 billion euros. In Italy, revenues fell by four per cent to around 25 billion euros, and in Spain by 5 per cent to just under 19 billion euros. “The public sector reduced its IT expenditure due to budgetary constraints and even companies have reduced their budgets”, added Pols. However, the situation is expected to ease as early as 2012: IT spending is expected to increase to 2011 levels in the countries named above. However, owing to the persisting uncertainty regarding macroeconomic development in the coming year, these forecasts are also fraught with considerable uncertainty.

The largest individual market of the BRIC countries is still China with a volume of 204.5 billion euros in 2011. The growth of the Chinese ICT market will amount to around ten percent in 2011 and 2012 according to an EITO forecast. Significant growth will be achieved above all by the Chinese IT sector in 2011, with a plus of eleven percent, whereas revenues from telecommunication technologies and services will only grow by around nine percent.

In booming countries like India and China, IT spending remains dynamic. China's high-tech market is expected to grow by a further 14 per cent in 2012 to 68 billion euros, thus amounting to around a fifth of the volume of the European market. The Indian IT market is also expected to post two-digit growth to 18 billion euros.


Since 1993, the European Information Technology Observatory (www.eito.com) offers high quality and up-to-date information on European and global markets for information technology, telecommunications and consumer electronics. The EITO is managed by Bitkom Research GmbH, a wholly owned subsidiary of BITKOM, the Federal Association for Information Technology, Telecommunications and New Media in Germany. EITO collaborates with leading market research institutes including IDATE, IDC and GfK, and research activities of the EITO Task Force are supported by the European Commission and the OECD. EITO is sponsored by CeBIT, Deutsche Telekom, KPMG, Messe München, Red.es and Telecom Italia.

 

Contact:
Marcel Bertsch, EITO Press Spokesman,m.bertsch@eito.com



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