European IT Market Slowing Down
Demand for software and IT services will continue to grow steadily in Europe this year, but sluggish performance in the telecommunications sector will dampen the reasons to celebrate, according to a forecast released Thursday ahead of the Cebit trade show.
The overall ICT (information and communications technology) market will grow by only 2.9 percent in 2007, to
The IT sector, including software, hardware and services, will show the strongest growth, up 4.4 percent this year to
IT services, including outsourcing, consulting and systems integration, will grow by 5.5 percent, up from 5.3 percent in 2006. Hardware revenue is expected to grow just 1.7 percent in 2007, driven by notebooks and multifunction devices such as printer-scanners. Demand for desktop PCs will dip slightly, the study said.
In 2008 Europe's IT sector will grow slightly more quickly at 4.7 percent, the EITO said, to reach
The market for telecommunication products and services, by comparison, is expected to grow only 1.5 percent this year, to
The biggest sales-generator for telecommunications this year will be broadband access systems, particularly DSL (Digital Subscriber Line) modems in homes. More than 42 percent of European homes are now connected to the Internet via broadband access systems, the report said.
The EITO study also contains revenue forecasts for consumer electronics products. Sales are expected to increase 2.5 percent, buoyed by strong demand for flat-screen TVs.