Accelerating Sustainability Investments Will Fuel Double-Digit Growth in European Digital Spending in 2023, Says IDC
MILAN— European spending on digital transformation (DX) is forecast to exceed $550 billion in 2023, a year-on-year increase of 15.9% from 2022. According to International Data Corporation’s (IDC) latest Worldwide Digital Transformation Spending Guide, DX spending in Europe will continue to grow in double digits till 2026, with a CAGR of 16.6% for 2021–2026.
DX spending will be driven by investments in discrete manufacturing, professional services, and process manufacturing. Together, these industries will account for over a third of total European DX spending in 2023.
Sustainability will be a key strategic priority that will boost European digital spending as it matures from being a “nice-to-have” to a key driver of customer engagement, trust and business development. Spending on sustainability is expected to grow by 23.8% CAGR to 2026 in Europe, driven by strong regulation, stakeholders’ increasing expectations, and initiatives to cut costs due to the energy price hikes brought on by the Russia-Ukraine War.
“Digital transformation spending in Europe is driven by many factors, including the need for European companies to develop a strong and credible sustainability strategy,” said Angela Vacca, senior research manager, Customer Insights & Analysis, IDC. “Companies recognize the business benefits of a digital-first strategy, with sustainability gaining center stage, especially across European companies operating in the manufacturing, transport, and utilities industries.”
European spending on sustainability-related use cases — such as environmental resource optimization/resource management and representation, tracking and reporting of CO2 emissions — will more than double between 2022 and 2026. Investments will be led by Germany, the U.K., and France.
About IDC Worldwide Digital Transformation Spending Guide
IDC’s Worldwide Digital Transformation Spending Guide quantifies enterprise spending for 375 DX use cases across 19 industries and 17 geographic regions. The guide provides spending data for 56 DX strategic priorities and 109 programs, as well as technology spending by deployment type (cloud, non-cloud/other).
