EMEA IT Spend to Exceed $1T in 2018
November 09, 2017
spending in EMEA is projected to total $1
trillion in 2018, an increase of 4.9 percent
from estimated spending of $974 billion in
2017, according to the latest forecast by
In 2017, however, all categories of IT
spending in EMEA underperformed global
averages (see Table 1). Currency effects
played a big part in the weakness in 2017,
and will also contribute to the strength
forecast in 2018.
Table 1. EMEA IT Spending Forecast (Millions
of U.S. Dollars)
2017 Growth (%)
2018 Growth (%)
Data Center Systems
Source: Gartner (November 2017)
Gartner analysts are discussing the
underlying trends that are driving IT
spending patterns this week during the
Gartner Symposium/ITxpo taking place in
Barcelona through Thursday.
"The U.K. has EMEA’s largest IT market and
its decline of 3.1 percent in 2017 impacts
the forecast heavily," said John-David
Lovelock, research vice president at
Gartner. "Weak Sterling and political
uncertainty since Brexit are reducing U.K.
IT spending in 2017, while other major IT
markets in EMEA grew steadily."
Another significant currency effect is the
rapid appreciation of the Euro against the
U.S. Dollar— it provides an incentive for
Eurozone countries to defer IT spending to
2018 where possible, in anticipation of even
lower prices in U.S. Dollars.
"However, there is more to the recovery in
2018 than just currency effects," added Mr.
Lovelock. "Strong demand in the enterprise
software and IT services categories across
EMEA hint at significant shifts in IT
"The forecast highlights that businesses are
broadly reducing spending on owning IT
hardware, and increasing spending on
consuming IT as-a-service," said Mr.
Lovelock. "In the total IT forecast the
business trends are masked somewhat by
consumer spending, but when we look at
enterprise-only spending the new dynamics
between the categories are much clearer."
Significant Shifts in Enterprise IT Spending
EMEA enterprise IT spending* in 2017 was
weaker than the overall IT spending
forecast, declining 1.4 percent. The only
category predicted to show enterprise
spending growth in 2017 is the enterprise
software market at 3.2 percent.
"In 2017, we’re seeing a pause in EMEA
enterprise spending due to the switch to
as-a-service offerings gaining momentum,"
said Mr. Lovelock. "Among the spending
rebounds in 2018, however, we expect lagging
markets. The data center, devices and
communication services categories are all on
pace to decline 3 percent or more in 2017.
Despite improvements in 2018, spending on
servers, storage, network equipment,
printers, PCs, mobile devices — and even
hardware support — won’t recover to 2016
In 2018, total enterprise spending in EMEA
is on pace to grow 2.8 percent. All
categories of enterprise IT spending will
return to growth in 2018, but only IT
services and software will grow strongly at
4 percent and 7.6 percent, respectively.
Enterprise spending on devices and
communications services continue to fall
behind in 2018, growing at 2 percent or
lower, thus failing to recoup the losses of
Gartner’s recent public cloud forecast
further underlines this change in spending
as businesses increasingly adopt cloud
models for efficiency and agility. In doing
so, they also shift their IT spending toward
operational expenditure (opex) service-based
"The move to cloud services and opex
spending on IT should serve to stabilize the
growth in overall IT spending in EMEA in
2018 and beyond. We expect spending will
spread out more evenly with fewer spikes of
capital investment on hardware," said Mr.
Lovelock. "In both enterprise and overall IT
spending forecasts, worldwide and in EMEA,
we forecast IT spending from 2019 through
2021 will remain close to a 3 percent growth
rate each year."
More analysis on the outlook for the IT
industry is available in the complimentary
on-demand webinar "IT Spending 3Q17 Update:
Top 10 IT Markets Strategic Planners Must
Track in 2018." During the webinar, Gartner
analysts discuss the full IT spending
forecast and details on the top 10 IT
markets strategic planners must track in
IT spending forecast methodology relies
heavily on rigorous analysis of sales by
thousands of vendors across the entire range
of IT products and services. Gartner uses
primary research techniques, complemented by
secondary research sources, to build a
comprehensive database of market size data
on which to base its forecast.
The Gartner quarterly IT spending forecast
delivers a unique perspective on IT spending
across the hardware, software, IT services
and telecommunications segments. These
reports help Gartner clients understand
market opportunities and challenges. The
most recent IT spending forecast research is
available at Gartner Worldwide Spending
Forecast. This quarterly IT spending
forecast page includes links to the latest
IT spending reports, webinars, blog posts
and press releases.
*Gartner’s enterprise IT spending forecast
looks at IT spending across 11 key industry
verticals and across 21 spending categories.
It does not include consumer spending on
technology or services like the overall IT