Austria ICT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Austria's ICT Market is expected to grow at a CAGR of 6% over the next five years. Increasing emphasis on digital technology and advanced technology, such as cyber security, artificial intelligence, and robotics, drives the market's growth. The ICT market across the Country is multiplying due to strong spending on hardware and software services by Austrian companies.

Key Highlights

• The ICT sector includes both the IT and Telecom markets. IT investments are growing, and the ICT market demand is expected to grow significantly over the next five years. The increasing need to explore and adopt digital technologies and initiatives, the increase in the overall demand for digitalization and increasing IT infrastructure developments, the wide adoption of the 5G networks, and the rising penetration of technology investments are boosting the Austrian ICT market growth significantly.
• The government took initiatives to develop the ICT industry, which would drive new growth opportunities for the ICT market. For instance, NTT plans to expand its data center in Vienna, Austria. The Vienna 1 facility will be extended by about 3,000 sq m (32,300 sq ft), bringing it to 8,600 sq m. The facility will have a capacity of 15.2 MW. The federal government committed to investing worth USD 4.8 million in the project.
• Although information and communication technology (ICT) is everywhere, it plays a significant role in the Country's economic development. For instance, the Austrian Federal Government adopted the Artificial Intelligence Mission Austria 2030 (AIM AT 2030) Strategy to capitalize on Artificial intelligence (AI) possibilities for Austria and minimize the potential risks. Artificial intelligence is an essential key to being successful in digital change. Such government initiatives would bring new growth opportunities for the Austrian ICT market.
• The ICT industry significantly impacts Austria's GDP (Gross domestic product). According to the IMF (International Monetary Fund), Austria's GDP is expected to grow by USD 564.32 billion by 2027. The county's GDP is growing significantly with increasing IT investments that would create new growth opportunities for the Austrian ICT market.
• According to ITU (International Telecommunication Union), an internet user in Austria is expected to grow steadily from last year to 2028. According to the research, the Country's internet users increased by 7.89 million in the previous year. Also, Austria's internet users are expected to grow by 8.35 million users in 2028. The growing number of internet users would drive new growth opportunities for the Austrian ICT market.
• Due to the COVID-19 pandemic, a large portion of the Austrian population was forced to stay at home constantly, and many opted to work from home due to increased broadband consumption. Post COVID-19 scenario created an unexpectedly high demand for mobile, fixed broadband, fixed voice, pay-TV, and OTT services. Further COVID-19 pandemic accelerated digital transformation in Austria, creating new growth opportunities for the Austrian ICT market.

Key Market Trends

Growing demand for Cloud Technology

• Austria's ICT industry is driven by the significant increase in private and government investment, rising consumer spending, and increasing demand for cloud services would create new growth opportunities for the market growth. For Instance, Microsoft Corporation plans to construct Austria's first data center bringing the power of Microsoft's global-scale and trusted cloud to the country's vast ecosystem of startups, SMBs, corporations, and government. Microsoft will also continue to invest in new community activities to assist 120,000 Austrians in improving their creative and digital skills by 2024.
• For instance, AWS (Amazon Web Services) announced opening of over 30 new AWS Local Zones in critical locations worldwide. These new AWS Local Zones will be available in more than 21 countries, including Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Colombia, the Czech Republic, Denmark, Finland, Germany, Greece, India, Kenya, the Netherlands, Norway, the Philippines, Poland, Portugal, and South Africa. The increasing cloud infrastructure development would create new growth opportunities for the Austrian ICT market.
• Key players in the ICT market upgrade their existing technology with cloud computing solutions primarily drives the market growth. For Instance, Tech Data collaborated with nOps, a provider of a leading software-as-a-service (SaaS) cloud management platform on Amazon Web Services. Through this agreement, Tech Data's Australian partners would be able to assist their rapidly growing end-user clients in building, monitoring, and running secure and optimized AWS infrastructures.
• Furthermore, the increasing investments by the government in promoting numerous technology development, such as 5G, AI, IoT, machine learning, Big Data, etc. Additionally, the digital transformation emergence is expected to drive the Austrian ICT market growth. For instance, Cognizant plans to create an Adelaide delivery center to provide its clients with more direct access to locally based and highly trained technology specialists in Australia and New Zealand, and the expertise includes software, AI, Machine Learning, cloud computing, and data analytics to help Cognizant's clients solve their most crucial business challenges.
• The growing population in the region and the increasing need for adopting advanced technologies such as Cloud, IoT, artificial intelligence, and digital transformation are boosting the market's growth. According to the IMF (International Monetary Fund), Austria's GDP will be USD 564.32 billion by 2027. It indicates that the GDP is growing, and the growth of the Austrian ICT market is expected to grow over the next five years.

The IT and Telecom Sector is Expected to Drive the Market

• The increasing IT and Telecom infrastructure investments are driving the ICT market growth. For Instance, Dynatrace, an Austrian software company, announced the establishment of an IT R&D center in Tallinn. Such investments would bring new growth opportunities for the Austrian ICT market.
• Cyberattacks are expected to continue to grow over the next five years. Advancements in IT operations will prevent the ICT market from cyberattacks. Austria sees a spike in cyber attacks from criminals and states. According to Sophos, Austria recorded a 66% share of organizations with cyber insurance coverage.
• The country's 5G transition is still rising due to expanding new networks and increasing demand for high-speed connectivity services. For instance, Hutchison Drei Austria announced the commercial introduction of 5G Standalone (5G SA) benefits under the brand name 5G+. The service is now available to 1.3 million households and companies across the country, and all of the company's existing 5G transmission sites have been upgraded to support 5G+.
• The telecom industry's growth is mainly due to the growing population with the increasing broadband services adoption in the country. According to the Ookla Speedtest Global Index, Austria ranked 63rd with a median fixed broadband download speed of 61.96 Mbps in December last year. Fixed broadband services penetration is growing significantly and thus increasing the demand for the telecom services sector.

Competitive Landscape

The Austria ICT Market is moderately competitive and moving toward the fragmented stage as the market currently consists of various significant players. Several key players in the ICT market are in constant efforts to bring advancements. Some key players in the market are IBM Corporation, Dell Inc., Oracle, Microsoft Corporation, and Cisco Systems. Some of the current growth in the market are:

May 2022 - Qualcomm, Three Austria, and ZTE have successfully demonstrated a 5G network using a standalone (SA) coverage layer based on 700MHz (n28) and the world's first supplemental downlink (SDL) band 1400MHz (n75), significantly increasing rural throughput and the capacity of standalone mode NR (New Radio).

June 2022 - A1 Telekom Austria Group announced it would offer new services via VMware SD-WAN (software-defined WAN) in all its operating companies.

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• The market estimate (ME) sheet in Excel format
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