Why Read This
The European market for business-purchased technology goods and services (measured in euros) will decline by 6.3% in 2009, and be slow to recover in 2010 with only 4% growth. In both regards, it will lag behind the US tech market, which will have a smaller drop in 2009 and stronger growth in 2010. The main reason? The European economic recession has turned out to be deeper than the US recession, with Europe's downturn starting later and probably lasting into 2010. All categories of IT purchases will be down, with computer equipment and communications equipment being especially weak. The UK, Germany, and France continue to be the largest European IT markets, with a 55% share of the European market. The UK, Spain, Ireland, Iceland, and Central European countries will have worse performance than Europe as a whole, and no European country will avoid a down year. For IT vendors, other markets — especially the US, but also Asia/Pacific — will present better opportunities in 2009 through 2010 than Europe.