Where will Nordic companies expand their investments despite the headwinds?
In order to maintain performance and mitigate the impact of the geopolitical and macroeconomic situation, Nordic companies will accelerate investments in technologies to support them in their digital transformation.
Thus, the following key areas are identified by IDC to drive spending among Nordic organizations:
Cloud
Companies will keep their budget plans related to cloud infrastructure services (IaaS). Total cloud spending in the Nordics is projected to reach 22% five-year CAGR, reaching more than $27 billion by 2026. Even though more established than other emerging technologies, cloud will continue to drive investment in companies looking to become digitally ready and accelerate their business performance.
the Internet of Things
According to the latest European Emerging Technologies IDC Study from 2022, more than 40% of Nordic companies are already using IoT solutions. IoT is seen as part of the solution to the energy crisis, being essential for reducing costs, optimizing processes and improving performance. IoT spending will remain steady in the Nordics, especially in use cases related to smart grids, electric vehicle charging, advanced payments, and so on.
Security
Investing in cybersecurity technologies is among the top 3 priorities for organizations over the next two years. The investment can be perceived as a cost center, but it also enables new offers and secures existing and potential customers. Cyber security spending in the Nordics is forecast to grow at a 9% 5-year CAGR to reach over $6 billion by 2026.
Artificial intelligence
Artificial intelligence is one of the fastest growing technologies due to its tremendous potential to improve the customer experience, enable new experiences for employees, alleviate skills shortages and transform the workplace environment. According to the latest European Emerging Technologies IDC Study from 2022, more than 40% of Nordic companies plan to adopt artificial intelligence solutions in the next two years.
Enterprise infrastructure, managed services, project/professional services and anything “as a service” are additional areas where Nordic organizations have indicated they will continue their pace of investment.
How to capture pockets of growth in the Nordic region
Many companies struggle to find the right skills or partners to work with during their digital transformation journey, especially in such uncertain times. Providing guidance and support with the right technology, customized to address various industry-specific challenges will be the winning bet in these times.
To address all the challenges that Nordic companies face, IT providers need to plan their strategy precisely. Adapting to industry changes and rapidly fluctuating demand, focusing on use cases and placing the right “growth” bets will be crucial to weather storms and headwinds.
IDC will help technology vendors stay resilient, stay competitive and earn revenue despite turbulent times by supporting their precision planning with the following assets:
- Assess your competition and position by analyzing technology markets, vendor shares and forecasts — IDC Trackers
- Position your products and services to the right audience with a broad market overview — The IDC Black Book
- Find strategic opportunities by industry, company size, use case and geography — IDC Spending Guide
Contact us for more information on how IDC Data products help business leaders target, plan and execute their most important strategic initiatives by analyzing more than 100 countries, more than 120 technology markets, 20 of industries and over 400 use cases.