The UK will lead European tech market growth for 2014 due to increased spending on security software, mobile apps and big data tools, according to the latest forecast from Forrester.
The analyst house predicts that the UK’s tech market will grow at least twice as fast as any other European country this year at 4.9 percent, with a forecasted total of £79bn worth of tech purchases in 2014.
After a long period of economic difficulty, the European tech market as a whole is expected to see a 2.3 percent jump in spending in 2014, which is due to increase to five percent in 2015.
This growth will put Europe’s technology market ahead of the Asia Pacific market in terms of size. Meanwhile the UK and Germany now rank fourth and fifth respectively after the US, Japan and China for overall tech spend.
Software sales are expected to see the biggest market growth in the UK, rising by six percent, while communications equipment sales will rise by five percent. IT outsourcing and IT consulting spend will rise by seven and five percent respectively.
Forrester added that in Europe software sales will rise by four percent, with security software, mobile applications and big data the biggest areas of growth.
Forrester principal analyst Andrew Bartels told V3 the forecast acknowledges the security concerns businesses have following the recent news of government organisations snooping through private data.
“It is likely that the main reason that tech decision makers said they would be increasing their security spending was a reaction to the NSA scandal and a resulting desire to take steps to reduce the exposure of European firms to NSA data sweeps,” he said.
Interestingly, in the hardware market Forrester believes the weakness of devices such as PCs and peripherals will be offset by the demand for tablets – the only hardware category to have growth equal to that predicted for software.
However, despite this positive outlook for the European tech market, Bartels recommends that CIOs and IT teams proceed with caution before finalising their budgets for the year. “The risks of a renewed recession triggered by deflationary forces remain real, so CIOs should be cautious in their 2014 tech spending plans and be prepared to reverse course if necessary,” he said.
The report offers a different take on the hardware market compared with findings released by Gartner on Thursday, which said the slump in PC shipments was levelling out, driven in part by the end of support for Windows XP as well as a tablet slowdown.