Market Trends of Europe ICT Industry
This section covers the major market trends shaping the Europe ICT Market according to our research experts:
Increasing Demand for Digitalization and Scalable IT Infrastructure
- Users have received significant benefits from digital services, and new commercial opportunities have emerged. They have the potential to expand customer choice while also improving efficiency and competitiveness. Large platforms have evolved in the delivery of digital services, and they are critical structural components of today's digital economy.
- Consumer Internet of Things (IoT) related products and services will increase significantly in the coming years. The consumer IoT industry includes consumer items and services that are network-connected and may be operated remotely via a voice assistant or mobile device. According to European Union, the overall number of smart home devices in the Union was about 108 million at the end of 2019 and is expected to reach 184 million by 2023.
- The European Government also monitors the ICT offering devices, services, and companies. The Commission's Directorate-General for Competition closely monitors the information industry, consumer electronics, and internet sectors to ensure that market players comply with EU competition law.
- In terms of significant technology adoption, companies promoted using digital solutions during the Covid pandemic. According to European Commission, the utilization of cloud computing has reached 34 %. However, commercial utilization of AI and Big Data is only at 8 % and 14 %, respectively (target 75 % by 2030).
- According to the European innovation scoreboard, which measures innovation in Europe through a variety of different indicators, Finland had the highest score when it came to 'use of information technologies in 2021, a category that measures how much enterprises within a country are actively increasing the ICT skills of their personnel the level of ICT specialist employment.
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United Kingdom is Expected to Register the Fastest Growth
- The managed services require the organization to outsource certain portions of its IT needs to a third-party service provider. Companies may reduce spending, increase productivity, and improve performance without investing time in IT infrastructure deployment, maintenance, and upgrades.
- Domestic outsourcing is a practice in which companies want to outsource services to suppliers in their home nation. They choose nearshore suppliers when outsourcing overseas because of proximity, language, cultural similarities, and small time differences. For example, Infinity Group, a UK-based firm, is one of the industry's leading IT outsourcing organizations, offering outsourced IT assistance to over 1000 enterprises across the UK. Clients range from fast-growing start-ups and SMEs to well-established bigger enterprises, including well-known national chains.
- The Bank of England expects 40-90 % of bank workloads to be hosted in the public cloud or as software-as-a-service within the next ten years. It's vital to analyze the impact on business continuity if one of those suppliers fails, and financial authorities in the UK and throughout the world are keeping a close watch on this, including the Bank of England, the Financial Conduct Authority (FCA), and the Prudential Regulation Authority (PRA). This will provide new prospects for the UK IT services.
- According to Boosteroid, between January and December 2021, Uk was by far the fastest growing market for cloud gaming service Boosteroid. During the measured period, the service increased its number of active users in the country by 78 %.
- According to the Open UK, In 2021, 68 % of respondents stated using Amazon Web Services (AWS) for their cloud infrastructure. Google and Microsoft Azure take the next place. Notably, the market share of these providers is bigger in larger companies. Medium-sized and smaller companies prefer VMware, IBM, and OVH.
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