Consumer IT spend will decline also next year
Consumer spending on personal IT devices in EMEA will fall 2.6% next year. Total EMEA IT spend will increase by 3.7% next year and reach a total of USD 1.3 trillion, according to a forecast by marketing and research firm Gartner.
Among the most mature markets in Western Europe, Germany, France and UK, the UK IT will be the highest with a 5.2% increase year-over-year.
In contrast, consumer IT spending will not be recession proof, Gartner says:
“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%.”
Following a projected decline across all segments in 2022, enterprise software spending is on pace to rebound faster than the other segments with a forecasted 8.6% increase in 2023, the forecast says.
Public cloud services spending in EMEA is forecast to grow from USD 111 billion in 2022 to USD 131 billion in 2023, an increase of 18.2% year over year. Cloud software spending will represent 34% of total enterprise software spending in EMEA.
Among the most mature markets in Western Europe, UK IT spending is projected to achieve the highest growth rate in 2023 to reach USD 218.7 billion. In 2022, the UK will also fare better than France and Germany in local currency.
UK IT spending is projected to achieve the highest growth rate in 2022 with an 8% increase in British pounds. “However, because of the weakness of the British pound compared to the US dollar, it translates into an overall decrease in IT spending of 2.5% in US dollars.”
“With inflation rates being compounded by the value of the British pound and euro weakening against the US dollar, Western European CIOs need to be wary of price increases from IT vendors. Insist on a breakdown of the root cause(s) for price increases and look for win-win strategies to enhance strategic partnerships that also consider nonmonetary benefits”, Gartner says.
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