The European software market grew by 15 per cent year on year in 2022 despite economic turbulence and global instability.
According to figures compiled by IDC, this is the highest growth in the last 20 years, demonstrating the resiliency of demand for software in the face of major macroeconomic factors.
IDC said the growth was primarily driven by increased prices of software licenses (reflecting high inflation), customers locked in with existing partners, and contracts signed for longer than in previous years.
In 2023, however, the European software market is predicted to grow at “just” 11.7 per cent owing to general caution across all sectors.
Although the five-year compound annual growth rate (CAGR) for 2022–2027 is expected to 12 per cent for the European software market overall, three main areas are predicted to grow substantially faster.
Artificial intelligence platforms has an expected CAGR of 41 per cent (reflecting a 16 times increase from 2018 to 2027), followed by integration and orchestration middleware with a CAGR of 24 per cent and software quality and life cycle tools with a CAGR of 20 per cent, IDC said..
