What They Say
Gartner said that it expects IT spending in EMEA to grow by 3.7% in 2023, but the sting in the tale for hardware vendors is that expects spending on devices (down 13.1% this year) to fall again by 2.6% in 2023. EMEA growth will be in Software and IT Services. The major nations of Germany, France and the UK will grow by 5.3%, with the UK growing most.
Consumer IT spending will not be recession proof. John Lovelock, Distinguished Vice President Analyst at Gartner said,
“As inflation rates climb and the effects last longer, not only low-income consumers but higher earners will reduce spending on devices. In 2023, consumer spending on personal devices is on pace to decline 2.6%. In 2022, it is projected to decline 13%, the highest double-digit decline since 2009, when it declined 11.3%.”
What We Think
The post-Covid hangover continues… (BR)
Table 1. EMEA IT Spending Forecast, 2021-2023 (Millions of U.S. Dollars)
|
|
2021 Spending |
2021 Growth (%) |
2022 Spending |
2022 Growth (%) |
2023 Spending |
2023 Growth (%) |
|
Data Center Systems |
44,393 |
4.1 |
45,212 |
1.8 |
45,665 |
1.0 |
|
Software |
194,999 |
15.1 |
194,738 |
-0.1 |
211,572 |
8.6 |
|
Devices |
219,289 |
15.0 |
190,577 |
-13.1 |
185,620 |
-2.6 |
|
IT Services |
359,927 |
15.3 |
356,833 |
-0.9 |
380,472 |
6.6 |
|
Communications Services |
484,902 |
4.3 |
467,267 |
-3.6 |
477,865 |
2.3 |
|
Overall IT |
1,303,509 |
10.5 |
1,254,626 |
-3.8 |
1,301,194 |
3.7 |
Source: Gartner (November 2022)
