Market Trends of Austria ICT Industry
This section covers the major market trends shaping the Austria ICT Market according to our research experts:
Growing demand for Cloud Technology
- Austria's ICT industry is driven by the significant increase in private and government investment, rising consumer spending, and increasing demand for cloud services would create new growth opportunities for the market growth. For Instance, Microsoft Corporation plans to construct Austria's first data center bringing the power of Microsoft's global-scale and trusted cloud to the country's vast ecosystem of startups, SMBs, corporations, and government. Microsoft will also continue to invest in new community activities to assist 120,000 Austrians in improving their creative and digital skills by 2024.
- For instance, AWS (Amazon Web Services) announced opening of over 30 new AWS Local Zones in critical locations worldwide. These new AWS Local Zones will be available in more than 21 countries, including Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Colombia, the Czech Republic, Denmark, Finland, Germany, Greece, India, Kenya, the Netherlands, Norway, the Philippines, Poland, Portugal, and South Africa. The increasing cloud infrastructure development would create new growth opportunities for the Austrian ICT market.
- Key players in the ICT market upgrade their existing technology with cloud computing solutions primarily drives the market growth. For Instance, Tech Data collaborated with nOps, a provider of a leading software-as-a-service (SaaS) cloud management platform on Amazon Web Services. Through this agreement, Tech Data's Australian partners would be able to assist their rapidly growing end-user clients in building, monitoring, and running secure and optimized AWS infrastructures.
- Furthermore, the increasing investments by the government in promoting numerous technology development, such as 5G, AI, IoT, machine learning, Big Data, etc. Additionally, the digital transformation emergence is expected to drive the Austrian ICT market growth. For instance, Cognizant plans to create an Adelaide delivery center to provide its clients with more direct access to locally based and highly trained technology specialists in Australia and New Zealand, and the expertise includes software, AI, Machine Learning, cloud computing, and data analytics to help Cognizant's clients solve their most crucial business challenges.
- The growing population in the region and the increasing need for adopting advanced technologies such as Cloud, IoT, artificial intelligence, and digital transformation are boosting the market's growth. According to the IMF (International Monetary Fund), Austria's GDP will be USD 564.32 billion by 2027. It indicates that the GDP is growing, and the growth of the Austrian ICT market is expected to grow over the next five years.
Understand The Key Trends Shaping This Market
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The IT and Telecom Sector is Expected to Drive the Market
- The increasing IT and Telecom infrastructure investments are driving the ICT market growth. For Instance, Dynatrace, an Austrian software company, announced the establishment of an IT R&D center in Tallinn. Such investments would bring new growth opportunities for the Austrian ICT market.
- Cyberattacks are expected to continue to grow over the next five years. Advancements in IT operations will prevent the ICT market from cyberattacks. Austria sees a spike in cyber attacks from criminals and states. According to Sophos, Austria recorded a 66% share of organizations with cyber insurance coverage.
- The country's 5G transition is still rising due to expanding new networks and increasing demand for high-speed connectivity services. For instance, Hutchison Drei Austria announced the commercial introduction of 5G Standalone (5G SA) benefits under the brand name 5G+. The service is now available to 1.3 million households and companies across the country, and all of the company's existing 5G transmission sites have been upgraded to support 5G+.
- The telecom industry's growth is mainly due to the growing population with the increasing broadband services adoption in the country. According to the Ookla Speedtest Global Index, Austria ranked 63rd with a median fixed broadband download speed of 61.96 Mbps in December last year. Fixed broadband services penetration is growing significantly and thus increasing the demand for the telecom services sector.
