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Market Research Report

Europe ICT Industry Outlook 2019-2035 : Growth Opportunities | COVID-19 Impact Analysis

Published Date :

2021-02-18

Report Pages :

234

Format :

PDF

Region Covered :

Europe

Europe ICT Industry Overview

The global information technology industry is about to reach $5.8 trillion in 2022. The seriousness of the industry is a function of many trends in the ICT industry In the European Union. Todays’ world is changing and experiencing more connected and automated. For example we witness a jobs, personal lives and economies getting digital. The ICT sector contributes significantly to EU GDP and Unemployment. ICT sector is Omnipresent and the investment in the ICT sector contributes approximately half of EU’S productivity growth in the past. This sector involves high level of R&D spending and it accounts for a quarter of R&D spending in EU. The ICT goods and services are one of the main drivers of economic performance and productivity across all the sectors of the economy.

The market for Information technology and telecommunication (ICT) will grow at a rate of 3.1 percent in EU to 644 billion euros. This year for forecast is around 3 percent growth. With the new digital convergence technologies which are favorable to the ICT investment are the overall business climate and economic development. However, we have seen a positive trend in the industry because of the positive growth .Information technology is providing the leading contribution growth in this segment at 3.8 percent to a market value of 306 billion euros in particular. The telecommunication market is not increasing at a steady pace but by 2.6 percent to reach at value to 340 billion euros. The difference in growth between IT and Telecommunications may vary greater such as 1.8 percent growth in telecommunications and a 4.2 percent in IT. Overall the ICT market is expected to grow at a steady pace of 2.9 percent to 664 billion euros. ICT has a greater impact on economic growth .Increase in investment of ICT increases the amount of capital available thereby increasing the labor productivity which also increases the economic growth of the country.

In this context, the European ICT industry is potentially smashed between the cost advantages of Asian countries such as China, and the inventiveness and dynamism of the US industry.  The way out of this difficult situation is to create in Europe the conditions of restoring knowledge accumulation. By concentrating on an ambitious project of open source software production in embarked and domestic systems, Europe could reach several objectives: to make freely accessible an essential facility of networks, to stimulate competition, to help reaching the Lisbon objectives and to restore the European competitiveness in ICT.

ICT services represent 74 % of the total value added of the ICT sector globally. In 2015, the EU ICT sector value added amounted to € 581 billion, 5.2 % more than the previous year. The sector employed 5.8 million people and spent € 30 billion on business R&D expenditure (BERD).The ICT sector contributed 3.9 % of the total value added in the EU, 2.5 % of total employment, 15.7 % of total BERD, and 18.6 % and 20.6 % of the total R&D personnel and researchers in the EU respectively.

Europe ICT Industry Regional Segmentation

Growth leader among the five largest markets in the EU at present is Spain, which is able to increase its ICT market this year by 5.2 percent. Then come the United Kingdom, with 3.3 percent, France with 2.7 percent, Italy with 2.0 percent and Germany with 1.6 percent. The Federal Republic continues to be the largest market for IT and telecommunications in Europe, closely followed by the United Kingdom. In 2007, the outlook will be slightly different: Germany is estimated to grow by 1.4 percent, Italy by 2.1 percent, and the United Kingdom will reach 2.9 percent. The ICT markets in Spain (4.5 percent) and France (3.1 percent) will display the largest growth.

We conducted interviews with the Consumers (B2C Vs B2B), ICT Industry Brands, End User Industry Verticals, Contractual Suppliers, Product Managers, Consultants, Decision Makers, VPs, Executives, Sales Managers, Regional Sales Head, C-level Executives, etc.

Key Benefits: Europe ICT Industry Outlook, 2019-2035 (Edition 2021)

  • The report includes Europe ICT Industry Manufacturers, Contract Manufacturers & Brands Outlook (Market Competition & Global Presence), Business Strategy & Financial Analysis of Major Players. Further, the study also covers Industry Insights (Future Trends & Forecast Data), Trade Data (Exports and Imports), By Europe ICT Industry Type (Manufacturing & End User Industry Outlook), End User Industry Analysis (B2B Vs B2C), Competitive Intelligence, Opportunity Analysis
  • Market Data : Market Size (USD Billion), Market Share (%), CAGR (%), Y-O-Y Growth Rate (%) of Europe ICT Industry Industry and further it bifurcated into Countries, 2019-2035
  • Sales Data of Europe ICT Industry : By Each Packaging Type, By End Users, By Manufacturers Type, By Application, By Countries, (By Volume & Value), 2019-2035
  • Manufacturing Outlook of Europe ICT Industry : Manufacturers Outlook, Revenue & Market Share of Manufacturers, Manufacturing Capacity, Operational Margins, Contract Manufacturers & OBMs Outlook, etc., 2019-2035
  • Brands Outlook : Revenue Share (%) of Manufacturers By Packaging Type, Market Positioning, Ranking Analysis, Product Portfolio, Competitiveness, Regional Presence, No. of Products, Investments, Partnerships & Collaborations, Mergers & Acquisitions, etc., 2019-2035
  • Europe ICT Industry End User Outlook : End User Preferences of Packaging & Brands, End User Spending, Average Spending Power, Adoption Rate (%), Penetration Rate (%), Green Initiatives, Govt. Regulations, etc., 2019-2035
  • Market Dynamics : Growth Drivers, Challenges, Opportunities, Trends, SWOT Analysis, Porter's Five Force Model, PESTLE Analysis, etc., 2019-2035
  • Trade Data of Europe ICT Industry (Export & Import) : By Each Segment, By Major Destination Countries (By Value & Volume), 2019-2035
  • Supply & Demand Analysis : By Europe ICT Industry Type, End Use Verticals, By Countries, 2019-2035
  • Target & Potential Markets : By Major Countries & Industries
  • Detailed Outlook : Europe ICT Industry Industry Analysis : (Manufacturers, Raw Material Outlook, New Products, Ongoing Researches, End User Analysis, Manufacturing Models, Demand Analysis for Each End User Industry, Govt. Norms, Market Dynamics etc.)

Europe ICT Industry Dynamics

Growth Drivers:

There is a high demand for systems infrastructure and security solutions. Growth in the services sector is slightly less, at 5.3 percent. Research after the analysis shows that there is demand for Professional services such as outsourcing, consulting and system integration, as they are driving the ICT market.

The ICT revolution has rapidly spread across countries, industries, and socio-economic activities in the past few decades, with profound transformational effects in the EU region. There by ICT plays an increasingly important role in economic growth and structural changes. The economy is undergoing lot of changes.

New technologies and applications are developed in the ICT sector, in light to promote better communication with the citizens of the economy, to facilitate innovations in organizations and to create better competitive advantages. The organizations are witnessing a shift from business based culture to social networks based culture, where the innovations are generated for users have a significant influence.

The new technologies and their application in the productive activities induce changes within the economic structures and contribute to increasing labor productivity. ICT use leads to diversification of innovation activities through various channels. Overall, ICT has an essential contribution to the social and economic growth, leading to the improvement of welfare and living standard.

There is demand for mobile marketing today In the EU region. Increasing competition among different mobile broadband technologies is pressurizing mobile operators to innovate in terms of service packages and pricing. Over 80 per cent of countries have 3G networks, and more than half of them also have operational mobile WiMAX networks. So far, Long-Term Evolution (LTE) networks have relatively limited coverage and installed base, although one in ten countries has at least one local LTE network.

There are apps for all the services today. Smartphone penetration in middle-income economies is expected to grow from 47 per cent in 2011 to 63 per cent in 2015, largely driven by economies of scale in China and India, resulting in cheaper handsets and mobile broadband services.

Challenges:

Economic factors: unfavorable macroeconomic conditions, but also network effects whereby leaders are likely to become leaders in the future. Then it becomes useless for a country to support its home industry if it has no chance to become a market leader.

Institutional factors: There is absence of structural reforms leading to rigidities, difficulty of implementing systemic innovations due to the fragmentation of the European efforts, cultural factors, which, in some sense, are a form of long term institutional specificity.

Sectoral factors: Europe does not lag behind in all the sub-sectors. Europe has several times emphasized the success of GSM, but the same does not apply to most of ICT products and services. In fact mobile telephony seems to be the only market segment where European firms, both in manufacturing and services, are world number one (Nokia for terminal manufacturing, Vodafone for mobile services). But it is well known that Asian manufacturers whether Korean (LG Electronics, Samsung), Japanese (Mitsubishi, Sharp) or even Chinese are catching up quickly, at least in the terminals segment. Europe is the region which is lagging behind.

Trends:

The ICT 2010 on R&D in ICT in the European Union, the ICT sector has been able to advance in the amidst of the two economic crises, that is the dotcom crises and the recent global meltdown crises. Research after the analysis confirms the consistent growth in the ICT sector and it also presents trends of the major ICT R&D trends in the European Union. The core ICT Industry and the ICT enabled innovation in the non ICT industries have contributed to the economic growth of advanced economies in the European Union. The ICT sector is one of the highlights in the EU Lisbon objectives and the ICT sector will retain its prominence in the newly proposed Europe 2020 strategy. The EU strategy focuses on achieving a target spending of 3% of GDP in the EU as proposed in Europe 2020 strategy. The ICT market shows a positive trend in the EU market .

Geographical Market (Dominate Market , Target Opportunities)

Growth leader among the five largest markets in the EU at present is Spain, which is able to increase its ICT market this year by 5.2 percent. Then come the United Kingdom, with 3.3 percent, France with 2.7 percent, Italy with 2.0 percent and Germany with 1.6 percent. The Federal Republic continues to be the largest market for IT and telecommunications in Europe, closely followed by the United Kingdom. In 2007, the outlook was slightly different: Germany is estimated to grow by 1.4 percent, Italy by 2.1 percent, and the United Kingdom will reach 2.9 percent. The ICT markets in Spain (4.5 percent) and France (3.1 percent) will display the largest growth.

Within information technology the software market, growing by 6.3 percent this year, shows the strongest dynamic. Here demand is particularly high for systems infrastructure and security solutions. Growth in the services sector is only slightly less, at 5.3 percent. Professional services such as outsourcing, consulting and system integration, are here driving the market. A lot of companies are seeking to increase their efficiency and productivity with the help of IT services providers. Research after the analysis shows that the Software and services, will continue to grow at least as strongly in 2007. The outlook is less favorable at present for the market in computers. The server market is shrinking by 0.3 percent, and turnover in PCs by 1.2 percent. For 2007 the computer hardware market in the EU is expected to increase again modestly. Overall the experts anticipate an EU IT market value of a comfortable € 318 billion next year.

In telecommunications (TLC), the greatest pressure is on voice services. Mobile telephone services continue to grow by 3.8 percent but fixed voice telephone services are losing 4.3 percent this year in the European Union. The voice services market has in many places reached saturation and providers are competing with continuous price reductions. "Voice is still a cash cow but no longer a driver of growth", is the light of the day today. "The future is in broadband services, IPTV, and fresh online content. Different opportunities coming from new applications related to the Web 2.0 development in the digital IP convergence scenario also are playing a major role." That the TLC sector is still showing an overall increase of 2.5 percent is explained by an enormous increase in demand for Internet and data services. European companies in this area are making 10.6 percent more turnover than in 2005. Fixed broadband services will also continue to be in demand both in 2006 and 2007. Developments in other market segments are expected to continue in 2007: fixed voice telephony again will shrink by 4.3 percent while data services increase further by 7.8 and mobile voice telephony is expected to grow by 2.8 percent. The telecommunications market next year will reach a volume of € 345 billion.

"The boom in broadband lines, together with the strong recovery of software and IT services markets, open new opportunities for Europe to actively participate in the new digital challenges at world level". European ICT companies are generally well equipped to face global competition. "The European Union has a strong foundation in all areas and an enormous potential in skills, culture, knowledge, innovation and creativity." There are, of course, also obstacles to be overcome: "What is needed is reduced fragmentation of effort, full acceptance of change by industry and governments, and focusing of policies and strategies on common targets. According to Thomas L. Friedman’s well known book, the ‘World is Flat’, but Europe still has to move faster to become itself a really ‘flat’ region".

Mergers and Acquisitions Activities

IoT, the smart home, cybersecurity, and consumer electronics (CE) took center stage in human consciousness and on Wall Street in 2018. Mergers, acquisitions, IPOs and other big equity events in the category piled up.In the home-technology installation channel, three organizations that almost never make acquisitions – Lutron, RTI and CEDIA – made acquisitions this year. Meanwhile, home-automation and A/V leaders SnapAV and Control4 continued their buying streaks. Private-equity firms Kingswood Capital and Hellman & Friedman in Europe added to their smart-home portfolios. On the other hand, Apollo Global Management divested, taking ADT public (again) less than two years after it acquired the security and home-automation firm.In addition to ADT, this year’s crop of smart-home IPOs included Sonos, Resideo (Honeywell’s residential group), Summit Wireless (WISA) and Arlo (Netgear spinoff).

Arguably the most important M&A event of the year was Amazon’s acquisition of security and home-automation vendor Ring for nearly $1 billion, very shortly after acquiring smart camera maker Blink in December 2017. Google probably threw up a little. It paid 3.2 times as much for Nest just four years earlier. This year, Nest finally merged completely into Google’s home products group—thermostats, security system, cloud and all—throwing a wrench into some Nest integrations. The other “Big CE” event this year was the Sonos IPO. The wireless-audio company had provided a guidance of $17-$19 per share, but ended up selling at $15 when it went public on August 2, fetching the company about $83 million and valuing the business at about $1.5 billion. After spending a month in the $20 range, SONOS has been slowly sliding, and now trades at less than $10 .

Players Specific Data (Product Launch, international or domestic players dominance, Sales Distribution, etc)

The ICT sector in Austria is huge with around 15,000 enterprises employing 170,000 employees. The total revenue generated by ICT sector in Austria is approximate EUR 45 billion. Austria also has the highest penetration of mobile phones with many international companies actively providing service to the consumers. Some of the reputed companies in ICT sector of Austria include Microsoft, Hewlett-Packard, Polycot and many others.

Germany has the largest ICT sector in terms of volume revenue earnings which is 20% of the EU’s ICT revenue. Germany is also the fourth largest ICT market in the world which is 5.5% of the world market. The approximate turnover of Germany’s ICT market is EUR 130 billion. Around 850,000 people work in Germany’s ICT industry which is second to only machinery and equipment industry. R&D in ICT is also a highlight of ICT sector in Germany and around 20% of patent in European Patent office were from German ICT sector.

The reason for high amount of activity in R&D in ICT sector is because Government is providing incentives to investors engaging in R&D sector. The German Government through its High Tech Strategy in 2011 will provide EUR 15 billion p in projects grants. Some of the big ICT players in Germany include eBay, Oracle, DELL and many others.

France is also one of the leading nations in ICT sector. Some of the big players in this sectors include France Telecom, Cap Gemini, Dassault Systems, ST Microelectronics, Motorola and LG Electronics, Atmel, IBM, NXP and Free scale. All these reputed companies have invested in different type of industries in ICT.

FDI/Investment policy:

The German Government gives importance to R&D activities in ICT industry. To encourage R&D activity and investment in R&D in ICT, it offers several funding program. The Government has taken an initiative to invest and spend around 3% of national GDP in R&D.

The Austrian government has released a ICT Research and Development Strategy 2020 which mainly focuses on development of ICT sector in Austria.

France Government gives preferential treatment to IT equipment with depreciation rates as low as 40%. Besides it also gives preferential treatment to SMEs. The French government has completely abolished local business tax from 1st January 2010 for productive investment.

Investment Incentives:

The different funding program provided by German Government includes, interest reduced loans, special R&D grants. Many partnership firms investing in this sector specifically in R&D can receive finance at regional, , state, national and European Union Level.

The incentives offered include 50% of all R&D costs while the German Federal State grants are specifically reserved for SME’s.

Austrian Government also offers R&D grants and incentives to investors in ICT sector. Besides a good co-operation model and attractive incentives, it also offers several advantages to national and international research programs.

The French government has an attractive tax policy for investors. It has completely abolished taxes such as Annual Fixed tax and Stock exchange tax for investors.

COVID-19 impact on "Europe ICT Industry"

The report analyses and includes complete detailed chapter of 50-70 pages about the short term & long terms impact of COVID-19 outbreak on each segment of "Europe ICT Industry" along with government measures to support the sector. It also showcases the current market landscape during COVID, impact of the virus on leading companies, expected demand schedule and supply chain in the industry and other various major factors. This will help you identify those companies that may benefit from this pandemic as well as those that will lose out.

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Key questions answered in this research report

  • What is the total market size by 2035 and what would be the expected growth rate of sales?
  • What are the total sales in 2018-19 and what would be the expected demand over the forecast period?
  • What are the recent developments and business strategy of companies?
  • What are the market opportunities for the existing and entry level players?
  • What are the key market trends?
  • What are the factors which are driving this market?
  • What are the major barriers to market growth?
  • Who are the key vendors in this market space?

Reasons to buy this market study

  • Europe ICT Industry Facilitate decision-making based on strong historic and forecast data for
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  • Europe ICT Industry Facilitate decision-making based on strong historic and forecast data for
  • Develop strategies based on the latest regulatory framework
  • Position yourself to gain the maximum advantage of the Europe ICT Industry’s growth potential
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  • Respond to your competitor’s business structure, strategy and prospects’s growth potential



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Europe ICT Industry Outlook 2019-2035 : Growth Opportunities | COVID-19 Impact Analysis

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