Cloud, Edge and IoT represent three major, interconnected technology trends enabling the digital transformation of European organisations and economies. Via the dashboards and infographics below you can learn more about the key findings and the most interesting data from our CEI market analysis.
Cloud computing emerged as a way to enable multiple applications and even organisations to use and share centralised computing resources more efficiently. As a result, it has steadily become a core part of the modern technology landscape.
Organisations are utilising a combination of cloud, edge and IoT to enable a wide range of new solutions to transform processes, automate operations, and launch new products and services.
Creating this CEI environment—a continuum of data collection, storage and processing from edge to cloud—will be essential to a globally competitive, secure and dynamic data-agile economy in Europe. European organisations must adopt and deploy these technologies to maintain economic leadership, increase our economies’ and societies’ security and resilience, and achieve sustainable development objectives. The graph above gives an overview of the current CEI environment in Europe.
CEI Market Forecast
From a geographic perspective, the DACH region (led by Germany) is leading in cloud demand, accounting for 26.5% of the total public cloud market in 2021, and is projected to reach 27.5% by 2025. The U.K. and Ireland (UKI), the second-largest region in Europe, is the only region in Western Europe whose share is predicted to decrease from 23.9% to 22.6% in 2026. Conversely, the share of France, the third-largest region, is expected to slightly increase from 13.1% in 2021 to 13.4% in 2026. The Nordic region also has a significant share of 11.2% and will remain relatively steady over the next five years. Finally, Benelux and southern Europe are the smallest Western European subregions, with 9.5% and 9.1% shares in 2021, respectively. The Central Eastern European (CEE) region is the most negligible (6.7%) in Europe and with the slowest growth (18.9%).
Looking ahead at the edge market landscape in Europe, there are significant developments that will drive the edge spending in the region:
European edge spending will grow from nearly $38 billion in 2021 to $75 billion in 2026, with a five-year compound annual growth rate (CAGR) of 14.6%. Edge is one of the key technologies organisations rely on to unlock new digital capabilities for innovation and performance.
Compared with Central and Eastern Europe (CEE), Western Europe sees a more established and developed edge scenario. Nevertheless, edge adoption in CEE is expected to gain traction over the forecast period, despite being impacted by the ongoing crisis in Eastern Europe, albeit at a slower pace than in Western Europe.
IoT is being widely embraced throughout European organisations. However, the market is still early in its development. Many more organisations are expected to add IoT projects. Furthermore, many already using IoT are expected to add more projects and scale their projects more widely within their organisations.
The expected growth in IoT adoption, deployment and scaling is reflected in forecasts of European spending on IoT. According to IDC, European IoT spending will reach EUR 176 billion in 2022. That figure will grow at a compound annual growth rate of 10.0% to 2026, reaching EUR 258 billion.
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