In recent decades, the European information and communications sector has grown much faster than the broader economy. We expect this trend to continue in 2024, although the difference will be smaller than in previous years. We estimate volume growth of just over 4% in 2023 and forecast 4% volume growth in 2024. This forecast is based on several expectations.
First, investment in automation, cybersecurity, software and artificial intelligence will increase, while investment in hardware will decrease. Furthermore, ICT spending in Europe is likely to increase by around 5% annually. Growth in the telecommunications sector will be more moderate in the software and services sector. Finally, although enthusiasm is high, generative AI will not yet lead to further volume growth in 2024. Many enterprise software companies expect to release their initial versions of software packages that include generative AI in the first half of 2024, but The release of these packages will also take time. Therefore, 2024 will be a transition year.