Slowing Growth of the European ICT Market

18/07/2016 - Slowing Growth of the European ICT Market

  • This year's revenue set to rise by 0.7% to €686 billion
  • British ICT market will fall slightly by 0.5%
  • International ICT revenues likely to increase by 1.8%

Berlin, 18. July 2016

After a large increase in revenue over the last year, the growth of the information and communications technology market in Europe has slowed down somewhat this year, according to a new report of the European IT Observatory (EITO). It is expected that ICT revenues in the EU states will rise by 0.7% to €686 billion in 2016. There had been a 2.9% increase in 2015. The IT industry has clearly experienced more development this year than the telecommunications market. According to forecasts, revenue from IT hardware and services, as well as software, will rise by 2.7% to €388 billion; in contrast, Telecom revenue will fall by 1.8% to €298 billion. "After a strong upturn last year, we're seeing a flattening growth with smartphones and IT hardware, and continuing pricing pressure for telecommunications services," explains EITO Managing Director Axel Pols. "At the same time, the continuing digitalisation of the entire economy accounts for a large increase in revenue for software and IT services, which could increase by 5% and 3% respectively." While the ICT market is experiencing a slight growth in the southern countries of Italy, Portugal and Spain, a further decline with -1.1% is expected in Greece. The study also predicts a shrinking ICT market for the United Kingdom, with -0.5%. "After the Brexit decision, the British ICT market could become even weaker than expected as the year progresses. This mainly depends on the short-term economic impact, but also on how quickly details on the withdrawal process can be confirmed", says Pols.

ICT Market Report_2016_17

    ICT Market Report 2016/17

According to the EITO forecasts, international ICT revenue will rise by 1.8% to €3.1 trillion. The increase in the information technology sector, by 2.6% to €1.3 trillion, is expected to be much steeper compared to the telecommunications sector with a predicted growth of 1.2% to €1.8 trillion. In comparison to the global market, India remains the fastest growing ICT nation (a 6.7% increase to €64 billion), only just ahead of Turkey (a 6.1% increase to €20 billion). Russia is likely to experience the largest fall in revenue (a 3.3% decrease to €32 billion). The United States remains the largest ICT market by far. There, revenue is set to rise by 3.5% to €956 billion.

The new EITO report is available online:

The European IT Observatory (EITO) provides data and analysis of international markets for information and communications technology covering a total of 36 countries ( EITO is a project by Bitkom Research GmbH in collaboration with IDC, a global market intelligence firm, and ICT industry associations across Europe.

Dr. Axel Pols, a.pols[at]