Europe's IT and telecoms sectors will continue to expand in 2005 and are expected to perform better than the US, driven by stronger demand, an industry association said today.
The European Information Technology Observatory (EITO) said it expects Europe's information and communication technology (ICT) markets to grow 4.1 per cent in 2005, up from around 3 per cent in 2004 and above projected US growth of 3.9 in 2005.
In Western Europe, the British and Irish markets were seen shining, with projected growth of 6.1 per cent and 4.6 per cent respectively.
Worldwide the ICT markets is expected to expand by 4.3 per cent in 2005 and 4.8 per cent in 2006, with China driving growth in developing countries.
Investment in further development of broadband and third-generation mobile phones networks as well as digital television are seen driving telecommunications, EITO said.
The report also noted that companies were starting to shift their focus from cost reduction to investments aimed at improving their competitiveness, thus benefiting the IT sector.
Demand for new software, some of which is aimed at allowing firms to comply with new banking and accounting regulations, were driving the higher-than-average growth in the software market, the report added.