Europe ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the Europe ICT market size is expected to increase from USD 1.09 trillion in 2025 to USD 1.24 trillion in 2026 and reach 1.59 trillion by 2031, growing at a CAGR of 5.03% over 2026-2031.

This report is Segmented by Product Type (IT Hardware, IT Software, IT Services, IT Infrastructure, IT Security/Cybersecurity, and Communication Services), Enterprise Size (SMEs and Large Enterprises), End-User (BFSI, Government, Manufacturing, Healthcare, and More), and Geography. The Market Forecasts are in Value (USD).

Europe ICT Market Trends and Insights

Accelerated EU Digital Decade Funding 2021-2030 Catalyzing Cloud and 5G Roll-outs

Large-scale public funding is front-loading network infrastructure timelines. By December 2025, member states had already invested EUR 58 billion toward gigabit connectivity and rural 5G coverage, compressing project cycles that previously stretched to the end of the decade. Vodafone Germany alone switched on 15,000 5G standalone sites in 2025, opening network-slicing pathways for automotive telematics and remote surgery. SME migration incentives covering up to half of cloud-adoption costs expanded the addressable base for platform vendors, evidenced by a 34% year-on-year rise in SME cloud take-up in 2025. Funding delays tied to state-aid reviews, however, slowed disbursements in Italy and Spain, highlighting execution risk within the bloc.

Surge in Sovereign Cloud and Data-Residency Requirements Post-Schrems II Ruling

The invalidation of the EU-US Privacy Shield triggered sweeping workload repatriation. By 2025, nearly two-thirds of large European enterprises had shifted sensitive data to EU-domiciled providers or on-premises stacks. OVHcloud booked double-digit revenue growth on the back of public-sector wins, while Deutsche Telekom partnered with a major hyperscaler to deliver a Kubernetes-based sovereign cloud aligned with German federal rules. Colocation operators followed suit, expanding low-latency facilities in Frankfurt, Amsterdam, and Paris to serve finance and public-sector users that demand strict jurisdictional control. Elevated legal-review costs continue to lengthen migration cycles, yet overall momentum favors providers with clear data-sovereignty credentials.

Energy-Intensive Data Centers Facing Escalating Power and Carbon Taxes

Data-center electricity demand hit 104 terawatt-hours in 2025, with hubs in Frankfurt, Amsterdam, and Dublin accounting for almost two-thirds of consumption. A EUR 90-per-tonne carbon-allowance price, effective January 2026, raised operating expenses for non-renewable sites by low-double-digit percentages. National interventions reinforce the pressure: Ireland's moratorium on new Dublin connections and the Netherlands' energy tax on large facilities are prompting operators to place incremental capacity in Nordic markets or to co-locate near renewable-generation assets. Participation in demand-response programs is compulsory for new German sites above 10 MW, forcing architectural redesigns and accelerating the adoption of battery-backed microgrids.

Other drivers and restraints analyzed in the detailed report include:

1. Industrial Edge-Computing Demand Driven by Industry 4.0 Corridors
2. Rising ICT Sustainability Mandates Under the EU Green Deal Fueling Green Data Centers
3. Persistent Digital-Skills Gap Slowing Project Timelines

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

IT security and cybersecurity are projected to expand at a 7.26% CAGR, buoyed by the NIS2 directive's 24-hour incident-reporting rule that covers 18 critical sectors. Identity and access management stands out, reflecting EU-wide zero-trust mandates that require multi-factor authentication across banking and public services. Cloud-security posture-management tools are growing as enterprises automate compliance checks, while endpoint protection faces price compression due to bundled offerings from major operating-system vendors. Meanwhile, the Europe ICT market size for IT services retains scale leadership, yet automation-rich platform offerings are shrinking traditional consulting effort. Hardware refresh cycles continue to stretch as hybrid work stabilizes, compressing demand for desktop and notebook replacements. Communication-services revenues remain steady due to vendor consolidation and unified-communications bundles that lower total cost of ownership for distributed workforces. Infrastructure spending tilts toward edge form factors, partially offsetting softer demand for large on-premises servers.

Second-generation security controls that combine threat-intelligence feeds with machine-learning analytics are spreading beyond critical infrastructure to mid-market users, signaling a deeper addressable base. Network-security spend benefits from 5G core launches, which embed distributed denial-of-service mitigation at the edge. Application-security adoption also rises as software suppliers face liability under the Cyber Resilience Act, incentivizing secure-by-design practices. Collectively, these patterns confirm that security allocations will continue to capture a rising share of the Europe ICT market.

Complete Report Scope:

• By Product Type
  • IT Hardware
    • Computer Hardware
    • Networking Equipment
    • Peripherals
  • IT Software
  • IT Services
    • IT Consulting and Implementation
    • IT Outsourcing (ITO)
    • Business Process Outsourcing (BPO)
    • Managed Security Services
    • Cloud and Platform Services
  • IT Infrastructure
  • IT Security/Cybersecurity
    • Application Security
    • Cloud Security
    • Data Security
    • Network Security
    • Endpoint Security
    • Infrastructure Protection
    • Integrated Risk Management
    • Identity and Access Management (IAM)
  • Communication Services
    • Fixed Voice and Data
    • Mobile Voice and Data
    • Unified Communications and Collaboration
• By Enterprise Size
  • Small and Medium-Sized Enterprises
  • Large Enterprises
• By End-User Industry Vertical
  • BFSI
  • Government and Public Sector
  • Oil and Gas
  • IT and Telecom
  • Retail, E-Commerce and Consumers
  • Manufacturing and Industrial
  • Energy and Utilities
  • Healthcare
  • Other End-User Industry Verticals
• By Country
  • United Kingdom
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Nordics
  • Rest of Europe

List of Companies Covered in this Report:

1. Hewlett Packard Enterprise Development LP
2. Dell Technologies Inc.
3. Apple Inc.
4. Sony Europe B.V.
5. Samsung Electronics Co., Ltd.
6. Deutsche Telekom AG (T-Systems)
7. IBM Corporation
8. Capgemini SE
9. Microsoft Corporation
10. Oracle Corporation
11. SAP SE
12. Amazon Web Services, Inc.
13. Google Cloud (Alphabet Inc.)
14. Cisco Systems, Inc.
15. Atos SE
16. Accenture plc
17. Fujitsu Limited
18. Salesforce, Inc.
19. Ericsson AB
20. Nokia Corporation
21. Schneider Electric SE
22. Equinix, Inc.
23. OVHcloud
24. Orange Business Services
25. Telefonica Tech
26. Tata Consultancy Services Limited
27. Infosys Limited
28. Cognizant Technology Solutions
29. NetApp, Inc.
30. Sophos Ltd.
31. Avast plc
32. Darktrace plc
33. Kaspersky Lab
34. VMware Inc.
35. ServiceNow, Inc.
36. Zoom Video Communications, Inc.
37. Logitech International S.A.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support