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The Europe ICT market reached a value of USD 1.16 Trillion in 2025 and is projected to expand at a CAGR of around 5.30% during the forecast period of 2026-2035. With AI-powered digital transformation reshaping enterprise cloud and software, sustained 5G rollouts, rising cybersecurity investment under the NIS2 Directive, and Digital Decade grants accelerating SME cloud adoption, the market is expected to reach USD 1.94 Trillion by 2035.

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| Europe ICT Market Report Summary | Description | Value |
| Base Year | USD Trillion | 2025 |
| Historical Period | USD Trillion | 2019-2025 |
| Forecast Period | USD Trillion | 2026-2035 |
| Market Size 2025 | USD Trillion | 1.16 |
| Market Size 2035 | USD Trillion | 1.94 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 5.30% |
| CAGR 2026-2035 - Market by Country | United Kingdom | 6.9% |
| CAGR 2026-2035 - Market by Industry Vertical | IT and Telecom | 6.0% |
| CAGR 2026-2035 - Market by Enterprise Size | Small and Medium Enterprises | 5.8% |
| Market Share by Country 2025 | Germany | XX% |
The Europe ICT market is in a phase of structural acceleration. NIS2 is converting cybersecurity from discretionary to mandatory expenditure, 5G standalone is opening new enterprise B2B streams, and AI workload migration is reshaping cloud and software procurement.
IBM and Google Cloud announced a new Google Cloud Practice on June 4, 2026, combining IBM Consulting Advantage with Google Cloud's Gemini Enterprise Agent Platform to help enterprises scale AI and modernise core systems. The practice brings thousands of IBM Google Cloud-certified consultants to clients globally and represents a multi-billion-dollar opportunity, with direct implications for European enterprise digital transformation engagements.
Capgemini launched the Google Cloud AI Enterprise Hub in April 2026, an initiative designed to accelerate enterprise-level adoption of agentic AI systems by embedding AI into core business processes. The hub reflects Capgemini's strategic push to lead European enterprises through AI-native transformation, leveraging its position as a leading European IT services provider and its deep integration with Google Cloud infrastructure and tooling.
IBM announced a partnership with the UK Home Office in September 2025 to support the Emergency Services Network, covering more than 300,000 emergency responders across Great Britain. The deal underscores IBM's ability to win critical national infrastructure ICT contracts in Europe and reflects the UK government's ongoing digital transformation of public safety systems, a fast-growing segment within the Europe ICT market.
Vodafone Germany activated 15,000 5G standalone network sites in June 2025, enabling network slicing capabilities that open dedicated B2B pathways for automotive telematics, remote surgery, and smart manufacturing applications. The deployment is one of Europe's largest 5G standalone rollouts and signals the transition from consumer-focused 5G coverage to revenue-generating enterprise services within the European telecom services market.
The EU's NIS2 Directive obliges essential entities to implement enhanced cybersecurity measures and maintain alternate processing sites, making multi-cloud redundancy and managed security operations a legal requirement. IT security and cybersecurity is forecast to grow at a 7.26% CAGR within the Europe ICT market, the fastest of all type sub-categories, converting discretionary security pilots into non-negotiable operational expenditure.
EU member states deployed EUR 58 billion toward gigabit and rural 5G by December 2025. The Digital Decade programme targets 75% cloud usage by 2030, sustaining cloud migration and platform adoption projects across the Europe ICT market.
5G coverage exceeds 80% in populated areas across Cyprus, Italy, Denmark, and Austria. Europe's transition to 5G standalone architecture is enabling industrial IoT, autonomous logistics, and smart manufacturing applications that generate new recurring ICT services revenue.
Retail and e-commerce is the fastest-growing Europe ICT vertical, driven by cloud commerce platform expansion, payment digitalisation, and AI-powered personalisation. Cross-border e-commerce growth and legacy retail IT modernisation sustain consistent software and IT services investment across European retailers.
Enterprise AI adoption is accelerating across the Europe ICT market, with IBM and Google Cloud partnering in June 2026 to scale agentic AI systems for enterprise clients, and Capgemini launching its Google Cloud AI Enterprise Hub in April 2026 to embed AI into core business processes. Deutsche Telekom integrated IBM watsonx into core workflows in 2025, while EU Digital Decade targets and NIS2 compliance requirements are converting AI-readiness from a competitive differentiator into a procurement prerequisite across European enterprise and government segments.
The report of Expert Market Research titled “Europe ICT Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insight: IT and Infrastructure Services leads European ICT by type, underpinned by enterprise cloud migration and public-sector data centre procurement; Software is the fastest-growing type at approximately 6.5% CAGR, with cybersecurity sub-services recording 7.26% CAGR under NIS2 compliance mandates.
Market Breakup by Enterprise Size
Key Insight: Large enterprises lead European ICT expenditure with 86% business software adoption; SMEs are the faster-growing size segment, with cloud uptake rising 34% year-on-year in 2025 supported by EU Digital Decade incentive programmes.
Market Breakup by Industry Vertical
Key Insight: Government is the dominant industry vertical, anchored by NIS2 compliance requirements and EU Digital Decade grant deployment; Retail and E-Commerce is the fastest-growing vertical, driven by cloud commerce adoption and AI-enabled cross-border payments growth.
Market Breakup by Country
Key Insight: Germany holds a 20% European ICT market share and is the fastest-growing major country market at approximately 11.3% CAGR, driven by digital sovereignty investment; the United Kingdom commands the largest share of European IT services at 26.64%.
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By Type, IT and Infrastructure Services dominates European ICT due to enterprise cloud migration and public-sector data centre procurement
IT and Infrastructure Services leads European ICT expenditure. Cloud and platform services held 33.74% of Europe IT services revenue in 2025. Software is the fastest-growing type at approximately 6.5% CAGR, driven by SaaS, cloud ERP, and SAP S/4HANA investment.

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By Enterprise Size, Large Enterprises lead European ICT due to government digital mandates and systematic enterprise cloud migration programmes
Large enterprises command approximately 61.4% of European ICT spending, anchored by government entities, banks, and energy companies. SMEs are the faster-growing segment, with cloud adoption up 34% year-on-year in 2025 supported by Digital Decade grants.

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By Industry Vertical, Government leads European ICT expenditure driven by digital transformation mandates and NIS2 compliance requirements
Government is the largest vertical, driven by NIS2 compliance and public-sector digital transformation. Retail and E-Commerce is the fastest-growing vertical, driven by cloud commerce adoption and cross-border digital payments.

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Germany dominates the European ICT market due to its large enterprise software sector, strong manufacturing-sector ICT demand, and government investment in national digital sovereignty
Germany accounts for approximately 20% of European ICT market value and is the fastest-growing major market at approximately 11.3% CAGR. The government’s digital sovereignty plan targets software development and microchip production, while German firms are migrating workloads to Gaia-X-aligned sovereign clouds.
The United Kingdom commands 26.64% of European IT services and is the most mature cloud market. IBM’s September 2025 Emergency Services Network partnership and Capgemini’s public sector presence illustrate the depth of UK ICT activity. France and Italy are substantial markets, with EU Digital Decade grants accelerating broadband and cloud adoption.

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The Europe ICT market is moderately concentrated, with top global vendors and European integrators holding roughly 35-40% of expenditure. Competition centres on AI-readiness, data sovereignty compliance, and NIS2-aligned managed security delivery.
Founded in 1911 and headquartered in Armonk, New York, IBM operates across cloud, AI consulting, and enterprise infrastructure. In September 2025, IBM partnered with the UK Home Office for the Emergency Services Network. In June 2026, IBM and Google Cloud launched a Google Cloud Practice combining IBM Consulting Advantage with Gemini Enterprise AI.
Founded in 1984 and headquartered in San Jose, California, Cisco Systems is a leading European enterprise networking and cybersecurity provider. Cisco’s portfolio of enterprise switches, routers, SD-WAN, and security platforms positions it as a key beneficiary of NIS2 compliance spending and 5G enterprise connectivity deployments. In Europe, Cisco maintains a strong presence in telecom infrastructure, financial services networking, and public sector connectivity projects.
Founded in 1998 and headquartered in Mountain View, California, Google LLC operates Google Cloud. In April 2026, Capgemini launched the Google Cloud AI Enterprise Hub with Google, and in June 2026 Google Cloud entered a multi-billion-dollar practice with IBM. Google is investing in European sovereign cloud regions to meet GDPR and EU Data Act requirements.
Founded in 1967 and headquartered in Paris, France, Capgemini SE is Europe’s largest IT services and consulting company. In April 2026, Capgemini launched the Google Cloud AI Enterprise Hub, enabling enterprise-level agentic AI transformation. Capgemini’s deep public sector relationships across France, Germany, and the UK, combined with its SAP, cloud migration, and ESG reporting capabilities, position it as a preferred partner for government and enterprise digital transformation across Europe.
Other key players include AT&T Inc., Fujitsu Ltd., Oracle Corp., Verizon Communications Inc., Fortinet Inc., and others.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Stay ahead in the European ICT landscape with our full report for 2026–2035, covering AI transformation, NIS2 spending, 5G services, and SME cloud adoption. Download your free sample today.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
The market was valued at nearly USD 1.16 Trillion in 2025.
The market is projected to grow at a CAGR of 5.30% between 2026 and 2035.
The market is assessed to witness healthy growth in the forecast period to reach around USD 1.94 Trillion in 2035.
The different ICT types considered in the report include hardware, software, IT and infrastructure services, and telecommunication services.
The different sizes of enterprises in the market include small and medium enterprises and large enterprises.
The different industry verticals in the market include BFSI, IT and telecom, government, retail and e-commerce, manufacturing, and energy and utilities, among others.
The different countries covered in the market report are the United Kingdom, Germany, France, and Italy, among others.
The key market players are IBM Corp., Cisco Systems Inc., Google LLC, AT&T Inc., Fujitsu Ltd., Oracle Corp., Verizon Communications Inc., Huawei Technologies Co., Ltd., Fortinet Inc., and Capgemini SE, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Enterprise Size |
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| Breakup by Industry Vertical |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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