Despite the situation caused by the war in Ukraine, inflationary pressure and the shortage of qualified personnel to work in companies in multiple sectors, investment in technology will grow in Europe by 4% in 2022, up to 1.1 trillion dollars. In addition, according to IDC data, this investment will continue to grow in the coming years, reaching 1.4 trillion dollars in 2026, with an annual growth of 5% between 2021 and 2026.
The investments that will lead technology investment in Europe in 2022 they will be the ones that are software related, which will be the fastest growing category in year-over-year investment, driven by rapid growth in AI platforms, collaborative applications, and quality and lifecycle tools. With investments in cloud-first solutions, the software market has remained resilient to the same factors that have had a negative impact on the hardware market, which is expected to drop 0.1% this year.
Inflation pressure, the likelihood of a recession in many European countries, and the war in Ukraine are all having a negative effect on hardware demand in Europe, with device spending set to suffer the most from cost increases. of life, the shortage of products and the suspension of sales.
The sectors that will invest the most in technology, absorbing almost 46% of the total in 2022, are consumer, banking and discrete manufacturing. Europe is affected by supply chain problems, which are having a noticeable impact in many sectors. In many of them, companies are turning to automation to streamline processes and reduce problems.
Banking will focus on transformational processes related primarily to automation and customer focus to redefine how financial services deliver customer and employee experiences, supporting and reimagining core banking services, risk management , human resources and talent management. Also auditing and compliance with regulations. All through automation.
In manufacturing-related sectors, which are experiencing supply chain problems due to skill shortages, many companies will invest in technology to reduce pressure on their workforces, automate processes and reduce reliance on human labor when not working. resources are available.
In Russia, the situation is not so satisfactory, since technology spending in the country will fall by 23% in 2022. This is due to a sharp reduction in investment in hardware, especially since many hardware equipment supply companies have stopped doing business with the country. However, Russian investment in software and technological services will continue to grow, mainly due to the resilience of technology and confidence in local companies.
According to Andrea Minone, Research Manager, IDC UK«European businesses are experiencing a number of challenges, including talent shortages, supply chain issues, post-COVID-19 recovery, high inflation, rising cost of living and armed conflict in Eastern Europe . Technology has proven to be a solution to many of these problems, as companies look to automation and real-time decision-making to maximize their performance in these challenging times.«.
