Europe ICT Market (2026-2031) - Digital Transformation and Cloud Adoption Drive Growth

Dublin, Sept. 15, 2026 (GLOBE NEWSWIRE) -- "Europe ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

Europe ICT Market to Reach USD 1.59 Trillion by 2031 as Cloud, 5G and Cybersecurity Investment Accelerates

The Europe information and communications technology (ICT) market is projected to increase from USD 1.09 trillion in 2025 to USD 1.24 trillion in 2026 before reaching USD 1.59 trillion by 2031. The market is forecast to record a compound annual growth rate (CAGR) of 5.03% from 2026 to 2031, supported by public-sector digitalization, cloud migration, 5G deployment, data-sovereignty requirements and rising cybersecurity expenditure.

EU Digital Decade Funding Accelerates Cloud and 5G Deployment

Funding under the European Union's Digital Decade program is bringing forward network infrastructure projects across the region. By December 2025, EU member states had invested EUR 58 billion in gigabit connectivity and rural 5G coverage, shortening deployment schedules that had previously extended toward the end of the decade.

Germany has emerged as a major center of 5G expansion. Vodafone Germany activated 15,000 standalone 5G sites during 2025, creating opportunities for network slicing in automotive telematics, industrial applications and remote healthcare. Incentives covering up to 50% of cloud adoption costs have also encouraged small and medium-sized enterprises to modernize their technology environments. SME cloud adoption increased 34% year over year in 2025, expanding the potential customer base for cloud platforms, software providers and managed service companies.

Implementation challenges remain, particularly where state-aid reviews delay funding. Slower disbursements in Italy and Spain demonstrate the execution risks associated with large-scale digital infrastructure programs.

Sovereign Cloud and Data Residency Reshape Enterprise Technology Strategies

European sovereign cloud demand continues to rise as enterprises and government agencies prioritize regulatory compliance, jurisdictional control and secure data storage. Following the invalidation of the EU-US Privacy Shield, organizations accelerated the transfer of sensitive workloads to EU-based cloud providers and on-premises infrastructure. By 2025, nearly two-thirds of large European enterprises had moved sensitive data to EU-domiciled providers or internal systems.

This transition is supporting investment in sovereign cloud platforms and regional data centers. Colocation capacity is expanding in Frankfurt, Amsterdam and Paris to meet demand from financial institutions, public agencies and other regulated organizations. Although legal and compliance reviews can extend migration timelines, providers with strong European data-sovereignty credentials are positioned to capture sustained demand.

Energy Costs and Carbon Rules Challenge Data Center Expansion

European data center electricity consumption reached 104 terawatt-hours in 2025, with Frankfurt, Amsterdam and Dublin accounting for almost two-thirds of demand. A carbon allowance price of EUR 90 per tonne, effective from January 2026, increased operating costs for facilities dependent on non-renewable energy.

National policies are adding further pressure. Ireland's restrictions on new data center connections in Dublin and the Netherlands' energy taxes on large facilities are encouraging operators to consider Nordic locations and sites close to renewable power generation. In Germany, new data centers exceeding 10 megawatts must participate in demand-response programs. These requirements are accelerating investment in energy-efficient infrastructure, battery-backed microgrids and green data centers.

Additional factors influencing Europe ICT market growth include:

Cybersecurity Becomes a High-Growth ICT Segment

IT security and cybersecurity spending is projected to grow at a 7.26% CAGR, outpacing the broader Europe ICT market. Demand is being reinforced by the NIS2 Directive, including incident-reporting obligations affecting 18 critical sectors. Identity and access management is gaining momentum as banks, public agencies and other organizations adopt zero-trust security models and multi-factor authentication.

Cloud security posture management is also expanding as enterprises automate compliance monitoring across increasingly complex technology environments. Network security investment is benefiting from 5G core deployments that incorporate distributed denial-of-service protection at the edge. Application security adoption is rising as software providers respond to obligations under the EU Cyber Resilience Act and strengthen secure-by-design development practices.

IT services remain the market's largest product category, although automation and platform-based delivery are reducing demand for some traditional consulting activities. Hardware replacement cycles are lengthening as hybrid working practices stabilize, while communications services remain resilient due to industry consolidation and demand for unified communications. Infrastructure investment is increasingly shifting toward edge computing, helping offset weaker spending on large on-premises servers.

As digital transformation expands across banking, government, manufacturing, healthcare and other industries, cloud services, cybersecurity, sustainable data centers and next-generation connectivity are expected to remain central to Europe ICT market growth through 2031.

Key Topics Covered:

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 Centres

4.2.5 O-RAN Trials and Early 5G Standalone Deployments Enabling New B2B Services

4.2.6 Generative AI Upskilling Programmes Stimulating Software and Consulting Spend

4.3 Market Restraints

4.3.1 Energy-Intensive Data Centres 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 Industry Value Chain Analysis

4.5 Regulatory Landscape

4.6 Technological Outlook

4.7 Porter's Five Forces Analysis

4.7.1 Bargaining Power of Suppliers

4.7.2 Bargaining Power of Buyers

4.7.3 Threat of New Entrants

4.7.4 Threat of Substitutes

4.7.5 Intensity of Competitive Rivalry

4.8 Impact of Macroeconomic Factors

5 MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Product Type

5.1.1 IT Hardware

5.1.1.1 Computer Hardware

5.1.1.2 Networking Equipment

5.1.1.3 Peripherals

5.1.2 IT Software

5.1.3 IT Services

5.1.3.1 IT Consulting and Implementation

5.1.3.2 IT Outsourcing (ITO)

5.1.3.3 Business Process Outsourcing (BPO)

5.1.3.4 Managed Security Services

5.1.3.5 Cloud and Platform Services

5.1.4 IT Infrastructure

5.1.5 IT Security/Cybersecurity

5.1.5.1 Application Security

5.1.5.2 Cloud Security

5.1.5.3 Data Security

5.1.5.4 Network Security

5.1.5.5 Endpoint Security

5.1.5.6 Infrastructure Protection

5.1.5.7 Integrated Risk Management

5.1.5.8 Identity and Access Management (IAM)

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 Communications and Collaboration

5.2 By Enterprise Size

5.2.1 Small and Medium-Sized Enterprises

5.2.2 Large Enterprises

5.3 By End-User Industry Vertical

5.3.1 BFSI

5.3.2 Government and Public Sector

5.3.3 Oil and Gas

5.3.4 IT and Telecom

5.3.5 Retail, E-Commerce and Consumers

5.3.6 Manufacturing and Industrial

5.3.7 Energy and Utilities

5.3.8 Healthcare

5.3.9 Other End-User Industry Verticals

5.4 By Country

5.4.1 United Kingdom

5.4.2 Germany

5.4.3 France

5.4.4 Italy

5.4.5 Spain

5.4.6 Netherlands

5.4.7 Nordics

5.4.8 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, Products and Services, 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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