Publication date: 09 May 2023
Accelerating Sustainability Investments Will Fuel Double-Digit Growth in European Digital Spending in 2023, Says IDC
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For more information, contact:- Yana Frolova Email: yfrolova@idc.com Phone number: +420 2 2142 3140
- Angela Vacca Email: avacca@idc.com Phone number: +39 02 28457355
MILAN, May 9, 2023 — European spending on digital transformation (DX) is forecast to exceed $550 billion in 2023, a year-on-year increase of 15.9% from 2022. According to International Data Corporation's (IDC) latest Worldwide Digital Transformation Spending Guide, DX spending in Europe will continue to grow in double digits till 2026, with a CAGR of 16.6% for 2021–2026.
DX spending will be driven by investments in discrete manufacturing, professional services, and process manufacturing. Together, these industries will account for over a third of total European DX spending in 2023.
Sustainability will be a key strategic priority that will boost European digital spending as it matures from being a "nice-to-have" to a key driver of customer engagement, trust and business development. Spending on sustainability is expected to grow by 23.8% CAGR to 2026 in Europe, driven by strong regulation, stakeholders' increasing expectations, and initiatives to cut costs due to the energy price hikes brought on by the Russia-Ukraine War.
"Digital transformation spending in Europe is driven by many factors, including the need for European companies to develop a strong and credible sustainability strategy," said Angela Vacca, senior research manager, Customer Insights & Analysis, IDC. "Companies recognize the business benefits of a digital-first strategy, with sustainability gaining center stage, especially across European companies operating in the manufacturing, transport, and utilities industries."
European spending on sustainability-related use cases — such as environmental resource optimization/resource management and representation, tracking and reporting of CO2 emissions — will more than double between 2022 and 2026. Investments will be led by Germany, the U.K., and France.
About IDC Worldwide Digital Transformation Spending Guide
IDC's Worldwide Digital Transformation Spending Guide quantifies enterprise spending for 375 DX use cases across 19 industries and 17 geographic regions. The guide provides spending data for 56 DX strategic priorities and 109 programs, as well as technology spending by deployment type (cloud, non-cloud/other).
About IDC Spending Guides
IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. They are delivered via pivot table format or custom query tool, enabling users to easily extract meaningful information about each market by viewing data trends and relationships.
For more information about IDC's Spending Guides, please contact Monika Kumar at mkumar@idc.com.
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About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.