Europe ICT Market Size and Share

Europe ICT Market (2025 - 2030)

Europe ICT Market Analysis by Mordor Intelligence

Europe ICT market size currently stands at USD 1.18 trillion in 2025 and is projected to reach USD 1.56 trillion by 2030, implying a 5.29% CAGR for the forecast period. The upward trajectory reflects the European Union’s Digital Decade programme, which funnels EUR 205 billion (USD 222 billion) into digital priorities, including 5G corridors and sovereign cloud capacity. [1]European Commission, “State of the Digital Decade 2024,” eur-lex.europa.eu Heightened regulatory requirements after the Schrems II ruling, stricter energy-efficiency directives for data centers, and sizable corporate investments such as AWS’s EUR 7.8 billion (USD 8.5 billion) sovereign-cloud strategy continue to reshape capital allocation. Momentum also stems from industrial edge-computing pilots that help manufacturers optimise production quality, while EU-wide skills initiatives seek to close a cybersecurity talent gap hovering near 300,000 professionals. [2]OECD, “Building a Skilled Cyber Security Workforce in Europe,” oecd.org However, escalating power tariffs and carbon taxes threaten data-center profitability, and fragmented spectrum allocation continues to dilute 5G economies of scale.

Key Report Takeaways

  • By type, IT Services led with 38.1% of Europe ICT market share in 2024, whereas IT Security/Cybersecurity is expanding at an 8.3% CAGR through 2030.   
  • By deployment, on-premise accounted for 55% share of the Europe ICT market size in 2024, yet Public Cloud is advancing at a 9.1% CAGR to 2030.   
  • By enterprise size, Large Enterprises held 72.4% spending in 2024, while SMEs post a stronger 7.9% CAGR up to 2030.   
  • By industry vertical, BFSI captured 18.2% Europe ICT market share in 2024; Healthcare & Life Sciences is growing at a 6.3% CAGR to 2030.   
  • By geography, Germany commanded 20.3% of the Europe ICT market size in 2024, whereas Spain is forecast to grow fastest at an 8.7% CAGR.

Segment Analysis

By Type: Services Drive Growth while Security Accelerates

IT Services held 38.1% Europe ICT market share in 2024, reflecting a shift toward managed and outcome-based engagements that absorb regulatory risk for clients. Telefónica Tech exceeded EUR 2 billion (USD 2.2 billion) revenue in FY24 by expanding AI, data, and IoT practices, demonstrating how service lines align with compliance-heavy workloads. IT Security/Cybersecurity is the fastest-growing sub-category, recording an 8.3% CAGR through 2030 as the NIS2 Directive and the Cyber Resilience Act mandate hardened defences. Hardware spending remains steady, supported by Intel’s EUR 53.1 billion (USD 57.5 billion) 2024 sales, yet supply-chain friction caps upside. Software uptake tracks cloud migration; SAP grew 9.5% year-on-year to EUR 34.18 billion (USD 37.0 billion), propelled by ERP modernisation in highly regulated sectors. 

Demand for infrastructure services links directly to sovereign-cloud requirements, with Spain’s data-center footprint forecast to multiply sixfold by 2026. Communication Services players migrate to platform models; Deutsche Telekom earned EUR 115.8 billion (USD 125.4 billion) in 2024, 76.3% from outside Germany, underscoring exportable expertise. Patent offices and regulators increasingly deploy AI-enabled software, blurring traditional segment lines but enriching the Europe ICT market.

Europe ICT Market

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By Deployment: Cloud Gains despite Sovereignty Concerns

On-premise solutions still account for 55% of Europe ICT market size in 2024, illustrating enterprise caution in handling sensitive data. Public Cloud, however, grows at 9.1% CAGR to 2030, propelled by AWS’s EUR 7.8 billion (USD 8.5 billion) European sovereign-cloud plan. Certified cloud services narrow the cost differential, making compliance a value driver rather than a hurdle. Hybrid models dominate manufacturing, where edge nodes must meet latency requirements for industrial control. 

Private Cloud adoption accelerates as German enterprises balance sovereignty with scalability. Edge Computing, forecast to eclipse USD 155.9 billion globally by 2030, emerges as the third pillar, improving latency for critical applications. The Europe ICT market thus transitions from a two-tier to a three-tier deployment landscape.

By Enterprise Size: SMEs Embrace Cloud-Native Strategies

Large enterprises contributed 72.4% of 2024 spending as they negotiate bulk contracts and operate complex hybrid estates. Their share implies purchasing leverage, but slower growth indicates a mature adoption curve. SMEs, by contrast, are set to expand at 7.9% CAGR, exploiting cloud-native offerings to sidestep capital expenditure. German SMEs invested EUR 31.9 billion (USD 34.5 billion) in 2023 digitalisation despite macro headwinds, signalling market depth. 

Skills shortages bite hardest at the SME level, pushing firms toward managed-security and SaaS stacks that externalise expertise. Meanwhile, 45% of EU businesses already consume some form of cloud service, a share expected to climb as budget-friendly compliance solutions proliferate.

Europe ICT Market

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By Industry Vertical: BFSI Leads while Healthcare Accelerates

BFSI retained 18.2% Europe ICT market share in 2024, underpinned by roughly 60 digital-only banks in the euro area and fresh Digital Operational Resilience Act requirements. Spending foci include zero-trust architectures and open-banking APIs that deliver incremental revenues from embedded finance offerings. 

Healthcare and Life Sciences is the fastest-growing vertical with 6.3% CAGR through 2030. Digital patient records, tele-medicine, and AI-enabled diagnostics deliver efficiency gains evidenced by empirical studies linking digital maturity to health-system performance. Manufacturing continues to fund Industry 4.0 upgrades, while government units pursue ambitious cloud migration paths consistent with Digital Decade milestones.

Geography Analysis

Germany’s leading share stems from sustained investment in automation and edge-enabled workflows that secure export competitiveness. Deutsche Telekom’s multinational revenue mix validates the scalability of German expertise beyond its borders. Nonetheless, energy-price volatility and intricate permitting processes moderate growth velocity. Spain’s expansion owes to strategic submarine-cable links and competitively priced renewable power, positioning the country as a node connecting Europe to Africa and the Americas. 

France, Italy, and the Netherlands each pursue differentiated strategies: France prioritises cyber-sovereignty, Italy channels EU funds toward southern connectivity gaps, and the Netherlands banks on physical gateway advantages. Nordic states bundle renewable-energy abundance with digital-government maturity, boosting their share in cloud and AI workloads. Smaller eastern markets accelerate adoption through structural-fund inflows yet continue to wrestle with skills shortfalls and administrative fragmentation that inhibit full-scale digital transformation across the Europe ICT market.

Competitive Landscape

Europe ICT market exhibits moderate fragmentation despite high entry requirements in telecom infrastructure and cloud hyperscale. Telco incumbents—Deutsche Telekom, Orange, Telefónica—retain network dominance, while cloud leadership tilts toward AWS, Microsoft, and Google. EU sovereignty rules, however, give European providers such as OVHcloud and T-Systems an opportunity to differentiate on compliance grounds. 

Strategic moves focus on vertical integration and AI-enabled platforms. SAP pivots from ERP to holistic transformation suites, whereas Intel secures foundry financing to rebalance geography-specific production. Digital-only banks capture incremental consumer share, pressuring legacy financial institutions to double down on platform modernisation. Patent activity around multi-tenant edge security and generative-AI workloads underscores innovation intensity. The combined top five players control roughly 45% of addressable spend, placing market concentration at Score 6. 

 

Europe ICT Industry Leaders

  1. IBM Corporation

  2. Cisco Systems, Inc.

  3. Samsung Electronics Co., Ltd

  4. Dell Technologies Inc.

  5. Fujitsu Limited

  6. *Disclaimer: Major Players sorted in no particular order
Europe ICT Market Concentration
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Recent Industry Developments

  • June 2025: HPE CEO Antonio Neri stated confidence in closing the USD 14 billion Juniper acquisition after approvals from 14 regulators, including the European Commission, to strengthen an AI-driven edge-to-cloud networking portfolio.
  • May 2025: The European Cloud Competition Observatory criticised Broadcom’s VMware licensing framework for potential antitrust violations and urged contract-change notice periods to protect service-provider margins.
  • March 2025: Microsoft introduced a telecom-specific data model in Microsoft Fabric, enabling unified analytics for operators, while Nokia announced AI-powered network alliances targeting multi-purpose 5G platforms.
  • January 2025: Intel secured a capital infusion via Apollo for operating rights to Fab 34 in Leixlip, Ireland, aligning with its geographically balanced manufacturing model.

Table of Contents for Europe ICT Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Accelerated EU Digital Decade Funding 2021-2030 Catalyzing Cloud and 5G Roll-outs
    • 4.2.2 Surge in Sovereign Cloud and Data Residency Requirements Post-Schrems II Ruling
    • 4.2.3 Industrial Edge Computing Demand Driven by Europe's Industry 4.0 Corridors
    • 4.2.4 Rising ICT Sustainability Mandates (EU Green Deal) Fueling Green Data Centers
    • 4.2.5 O-RAN Trials and Early 5G Stand-Alone Deployments Enabling New B2B Services
  • 4.3 Market Restraints
    • 4.3.1 Energy-Intensive Data Centers Facing Escalating Power and Carbon Taxes
    • 4.3.2 Persistent Digital Skills Gap Slowing Project Timelines
    • 4.3.3 Fragmented Spectrum Policies Hindering 5G Economies of Scale
    • 4.3.4 Heightened Cyber-sovereignty Concerns Limiting US Hyperscaler Penetration
  • 4.4 Value Chain Analysis
  • 4.5 Regulatory Outlook
    • 4.5.1 EU Digital Markets Act and Data Act Implications
    • 4.5.2 Emerging Gaia-X and European Processor Initiatives
  • 4.6 Porter’s Five Forces Analysis
    • 4.6.1 Threat of New Entrants
    • 4.6.2 Bargaining Power of Buyers
    • 4.6.3 Bargaining Power of Suppliers
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Intensity of Competitive Rivalry
  • 4.7 Key Technology Investments
    • 4.7.1 Cloud Technology (IaaS, PaaS, SaaS, Edge Cloud)
    • 4.7.2 Artificial Intelligence and Advanced Analytics
    • 4.7.3 Cybersecurity (Zero Trust, SASE)
    • 4.7.4 5G and Fiber Backhaul
    • 4.7.5 Immersive Technologies (AR/VR, Metaverse-ready platforms)
  • 4.8 Sustainability and Green ICT Initiatives Snapshot

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Type
    • 5.1.1 IT Hardware
    • 5.1.1.1 Computer Hardware
    • 5.1.1.2 Networking Equipment
    • 5.1.1.3 Peripherals and IoT Devices
    • 5.1.2 IT Software
    • 5.1.2.1 System Infrastructure Software
    • 5.1.2.2 Application Software
    • 5.1.3 IT Services
    • 5.1.3.1 Managed Services
    • 5.1.3.2 Business Process Services
    • 5.1.3.3 Consulting and Integration Services
    • 5.1.3.4 Cloud Services
    • 5.1.4 IT Infrastructure / Data Centers
    • 5.1.4.1 Colocation Data Centers
    • 5.1.4.2 Hyperscale and Edge Facilities
    • 5.1.4.3 Data Center Storage
    • 5.1.4.4 Data Center Servers
    • 5.1.4.5 Data Center Compute
    • 5.1.5 IT Security / Cybersecurity
    • 5.1.5.1 Identity and Access Management
    • 5.1.5.2 Network Security Equipment
    • 5.1.5.3 Infrastructure Protection
    • 5.1.5.4 Cloud Security
    • 5.1.5.5 Application and Data Security
    • 5.1.5.6 Endpoint Security
    • 5.1.5.7 Integrated Risk Management
    • 5.1.6 Communication Services
    • 5.1.6.1 Fixed Voice and Data
    • 5.1.6.2 Mobile Voice and Data
    • 5.1.6.3 Unified Comms and Collaboration
  • 5.2 By Deployment
    • 5.2.1 On-Premise
    • 5.2.2 Cloud
  • 5.3 By Enterprise Size
    • 5.3.1 Small and Medium Enterprises
    • 5.3.2 Large Enterprises
  • 5.4 By Industry Vertical
    • 5.4.1 BFSI
    • 5.4.2 IT and Telecom
    • 5.4.3 Government and Public Sector
    • 5.4.4 Retail and E-commerce
    • 5.4.5 Manufacturing
    • 5.4.6 Energy and Utilities
    • 5.4.7 Healthcare and Life Sciences
    • 5.4.8 Transportation and Logistics
    • 5.4.9 Other Industry Verticals (Education, Media)
  • 5.5 By Country
    • 5.5.1 United Kingdom
    • 5.5.2 Germany
    • 5.5.3 France
    • 5.5.4 Italy
    • 5.5.5 Spain
    • 5.5.6 Netherlands
    • 5.5.7 Nordics
    • 5.5.8 Rest of Europe

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Hewlett Packard Enterprise Development LP
    • 6.4.2 Dell Technologies Inc.
    • 6.4.3 Apple Inc.
    • 6.4.4 SONY EUROPE B.V.
    • 6.4.5 Samsung Electronics Co., Ltd
    • 6.4.6 Deutsche Telekom AG (T-Systems)
    • 6.4.7 IBM Corporation
    • 6.4.8 Capgemini SE
    • 6.4.9 Microsoft Corporation
    • 6.4.10 Oracle Corporation
    • 6.4.11 SAP SE
    • 6.4.12 Amazon Web Services, Inc.
    • 6.4.13 Google Cloud (Alphabet Inc.)
    • 6.4.14 Cisco Systems, Inc.
    • 6.4.15 Atos SE
    • 6.4.16 Accenture plc
    • 6.4.17 Fujitsu Limited
    • 6.4.18 Salesforce, Inc.
    • 6.4.19 Ericsson AB
    • 6.4.20 Nokia Corporation
    • 6.4.21 Schneider Electric SE
    • 6.4.22 Equinix, Inc.
    • 6.4.23 OVHcloud
    • 6.4.24 Orange Business Services
    • 6.4.25 Telefonica Tech
    • 6.4.26 Tata Consultancy Services Limited
    • 6.4.27 Infosys Limited
    • 6.4.28 Cognizant Technology Solutions
    • 6.4.29 NetApp, Inc.
    • 6.4.30 Sophos Ltd.
    • 6.4.31 Avast plc
    • 6.4.32 Darktrace plc
    • 6.4.33 Kaspersky Lab
    • 6.4.34 VMware Inc.
    • 6.4.35 ServiceNow, Inc.
    • 6.4.36 Zoom Video Communications, Inc.
    • 6.4.37 Logitech International S.A.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-Space and Unmet-Need Assessment
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Research Methodology Framework and Report Scope

Market Definitions and Key Coverage

Our study treats the European ICT market as all business and public-sector spending on IT hardware, enterprise software, IT services, data-center and cloud infrastructure, cybersecurity solutions, and fixed or mobile communication services that enable the creation, movement, storage, and protection of digital information, expressed in USD value terms. Mordor Intelligence maps spending at vendor invoice level to consuming industry verticals and deployment models, then aggregates to a regional view.

Scope exclusion: purely consumer electronics such as game consoles, smart TVs, and wearables are left outside the market boundary.

Segmentation Overview
  • By Type
    • IT Hardware
      • Computer Hardware
      • Networking Equipment
      • Peripherals and IoT Devices
    • IT Software
      • System Infrastructure Software
      • Application Software
    • IT Services
      • Managed Services
      • Business Process Services
      • Consulting and Integration Services
      • Cloud Services
    • IT Infrastructure / Data Centers
      • Colocation Data Centers
      • Hyperscale and Edge Facilities
      • Data Center Storage
      • Data Center Servers
      • Data Center Compute
    • IT Security / Cybersecurity
      • Identity and Access Management
      • Network Security Equipment
      • Infrastructure Protection
      • Cloud Security
      • Application and Data Security
      • Endpoint Security
      • Integrated Risk Management
    • Communication Services
      • Fixed Voice and Data
      • Mobile Voice and Data
      • Unified Comms and Collaboration
  • By Deployment
    • On-Premise
    • Cloud
  • By Enterprise Size
    • Small and Medium Enterprises
    • Large Enterprises
  • By Industry Vertical
    • BFSI
    • IT and Telecom
    • Government and Public Sector
    • Retail and E-commerce
    • Manufacturing
    • Energy and Utilities
    • Healthcare and Life Sciences
    • Transportation and Logistics
    • Other Industry Verticals (Education, Media)
  • By Country
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Netherlands
    • Nordics
    • Rest of Europe

Detailed Research Methodology and Data Validation

Primary Research

Mordor analysts interviewed CIOs, procurement heads, cloud-service partners, and telecom regulators across Germany, France, the United Kingdom, Spain, the Nordics, and Eastern Europe. Conversations tested adoption rates for cloud and cybersecurity, confirmed average service price points, and clarified how recovery-fund grants translate into ICT outlays, thereby filling gaps evident in public statistics.

Desk Research

We gathered baseline spending pools from open datasets such as Eurostat ICT expenditure tables, the European Commission's Digital Economy and Society Index, OECD digital economy outlooks, ITU telecommunication revenue statistics, and GSMA Intelligence on 5G subscriber growth. Trade releases, listed-company filings, and policy papers (for example, the EU Digital Decade targets) supplied country-level splits, while paid libraries like D&B Hoovers and Dow Jones Factiva helped verify vendor revenues and deal activity. The sources named here are illustrative; many additional databases, journals, and regulatory portals were referenced to cross-check figures and definitions.

Market-Sizing & Forecasting

We begin with a top-down reconstruction of regional ICT outlays using Eurostat industry value added and DESI investment ratios, which are then validated through selective bottom-up checks such as sampled vendor revenue roll-ups and channel shipment audits. Key variables include: 1. Gross fixed capital formation on ICT assets, 2. Cloud workload penetration in enterprise servers, 3. 5G subscriber base versus total mobile connections, 4. Cybersecurity spend per employee in regulated sectors, 5. EU Recovery and Resilience Facility digital allocations, 6. Average contract price for managed services. A multivariate regression model links these drivers to historical spend and projects them forward; ARIMA smoothing handles short-term shocks. Where vendor disclosures lack granularity, ratios from analogous markets and expert feedback bridge the gaps, and results are iterated until the variance against primary inputs stays within five percentage points.

Data Validation & Update Cycle

Outputs pass automated anomaly scans, second-analyst reviews, and senior sign-off. We refresh every twelve months, with mid-cycle updates triggered when exchange-rate moves, major policy shifts, or mega-mergers alter spending baselines. Before release, an analyst revisits each assumption so clients receive the most current view.

Why Mordor's Europe ICT Baseline Commands High Reliability

Published numbers often diverge because firms pick different spending buckets, currency conversions, and refresh cadences. Mordor anchors its baseline in investment statistics aligned to EU definitions, blends them with live price-volume evidence, and updates annually, which reduces scope drift.

Benchmark comparison

Market Size Anonymized source Primary gap driver
USD 1.18 Trillion (2025) Mordor Intelligence
USD 1.20 Trillion (2024) Global Consultancy A Includes consumer electronics and duplicate online advertising spend, inflating totals
USD 2.28 Trillion (2023) Industry Database B Uses vendor revenue booked in Europe without netting intra-company sales; limited primary validation

The comparison shows how varying scopes and unchecked double counting can widen estimates. By grounding values in official investment metrics and corroborating them with field intelligence, Mordor delivers a balanced, transparent baseline that decision-makers can trace back to clear variables and reproducible steps.

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Key Questions Answered in the Report

What is the current Europe ICT market size in 2025?

The Europe ICT market size is USD 1.18 trillion in 2025, on track to reach USD 1.56 trillion by 2030.

Which segment of the Europe ICT market is growing fastest?

IT Security/Cybersecurity is expanding at an 8.3% CAGR through 2030 due to new EU cyber-resilience mandates.

Why does on-premise deployment still dominate the Europe ICT market?

Data-residency and sovereignty rules keep many sensitive workloads in-house, sustaining 55% on-premise share despite public-cloud growth.

How large is the skills gap affecting Europe ICT market growth?

Europe faces a shortage of roughly 300,000 cybersecurity professionals, causing project delays and higher labour costs.

Which country is the fastest-growing geography within the Europe ICT market?

Spain leads with an 8.7% CAGR to 2030 as hyperscalers invest in new data-center capacity.

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