European Tech Market Forecast, 2022 To 2027

European tech spend growth will be more sluggish in 2023 than Forrester’s previous forecast due to the Russia-Ukraine war, high inflation, and the devaluation of the euro and pound against the US dollar; however, growth (in euros) will still be 5.8% in 2022 and 3.6% in 2023. At a 31% share of tech spend, software will be the largest tech category by 2027, up from 23% pre-pandemic. Upcoming challenges for European tech spend will be concerns about Russian gas, fragile post-pandemic supply chains, increased government regulation, and a STEM worker shortage. But despite the short-term macroeconomic challenges, European tech spend will still grow about 4.8% to 5.5% a year from 2024 to 2027.