Market Trends of Italy ICT Industry
This section covers the major market trends shaping the Italy ICT Market according to our research experts:
Growing demand for Cloud Technology
- Italy'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 announced a USD 1.5 billion five-year investment plan in Italy, indicating a strong commitment to supporting local innovation and development, including the intention to bring Microsoft's first data center region to the country.
- Cloud computing includes several advantages for the BFSI (Banking, Financial Services, and Insurance), such as increased security, faster processing speeds, and lower costs. For instance, BPER Banca Group, Italy's third biggest banking group, signed a four-year agreement with IBM to accelerate the bank's transformation into a fully digital enterprise. The four-year deal will expand the bank's hybrid cloud strategy to modernize its technology infrastructure and applications by combining the security, scalability, and reliability of IBM Cloud for Financial Services to help meet the compliance requirements of the heavily regulated industry with the resiliency of IBM z16 and Red Hat OpenShift, a leading Kubernetes platform.
- For instance, VMware Cloud on AWS is available in the AWS Europe (Milan) region. It brings the total number of VMware Cloud on AWS available regions in Europe to six. Customers in Italy may use VMware Cloud on AWS to obtain a hybrid cloud solution that supports workloads in Italy. The increasing cloud infrastructure development would create new growth opportunities for the Italy ICT market.
- Furthermore, the increasing investments by the government in promoting the development of numerous technologies, such as 5G, AI, IoT, machine learning, Big Data, etc. Additionally, the emergence of digital transformation is expected to drive Italy's ICT market growth. For instance, Capgemini Invent includes its footprint in Europe by launching its complete offerings in Italy. The company provides its comprehensive portfolio of services in Italy, including intelligent industry strategy and enterprise transformation services.
- 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), Italy's GDP will be USD 2289.81 billion by 2027. It indicates that the GDP is growing, and the growth of the Italy 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, Aruba, an Italian cloud and hosting company, announced that its Hyper Cloud Data Center (IT4), presently under construction in Rome, will be finished in the first quarter of 2023. The campus is set to be the largest data center in Italy. Such infrastructure initiatives would bring new growth opportunities for the Italy 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. For instance, an Italian company Google developed hacking tools to spy on Apple Inc and Android smartphones in Italy and Kazakhstan. According to a Google report, its website lists European law enforcement agencies as customers, creating tools to spy on the targeted devices' private communications and contacts.
- The transition to 5G is still rising in the country due to expanding new networks and increasing demand for high-speed connectivity services. For Instance, Telecom Italia (TIM) won a government tender to implement 5G networks worth USD 817.54 million. Such government investments would bring new growth opportunities for the Key players in the ICT market.
- The telecom industry's growth is mainly due to the growing population with the increasing adoption of broadband services in the country. According to the Ookla Speedtest Global Index, Italy ranked 65th with a median fixed broadband download speed of 60.38 Mbps in December last year. Fixed broadband services penetration is growing significantly and thus increasing the demand for the telecom services sector.
