Europe's tech spending on the rise: Sweden, Ireland, and UK leading the way

Cautious optimism for Europe as analysts expect to see European tech spending up by five percent this year.

Tech spending in Europe is expected to hit five percent this year, according to Forrester Research, up 0.9 percentage points on last year.

The Nordic countries, especially Sweden, along with Ireland and the UK will see the best growth on the continent at over five percent, while France, Germany, Italy, Spain and the Benelux countries will see a more moderate rise in tech spending, with growth of between one and 3.5 percent.

Switzerland and Austria will experience "a lull" in their tech market, according to Forrester, seeing growth of just 1.7 and 2.3 percent respectively.

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Greece will remain Europe's weakest tech sector, with spending falling by 6.3 percent over 2015.

Most Eurozone countries will see tech spending rise by between one and two percent this year, while those non-euro countries are by and large seeing higher rates.

UK remains Europe's number one tech market

Europe's tech market remains larger than Asia Pacific's but about two-thirds the size of America's. Measured in euro terms, businesses and governments in the Americas will spend €1,105 billion on technology purchases in 2015, compared with €684bn in Western and Central Europe and €512bn in Asia Pacific.

The largest European countries are the UK at €150.5bn (£113bn) and Germany at €112bn. Combined, they will account for 38 percent of total tech spending in Western and Central Europe in 2015.

"The big three of the UK, France, and Germany will represent more than half of the European tech market this year," says Forrester.

Software purchases will be "ahead of the pack" among tech spending in Europe, says Forrester, growing by a more than respectable 7.4 percent in 2015.

The other strong area of growth will be tech consulting and systems integration services, expected to rise by seven percent over the course of this year. The growth of software and services is a result of the increases in spending on mobile apps, analytics and big data, and customer-oriented applications, says Forrester, along with the related services for helping firms choose, implement, and "maximise value from these software products".

Outsourcing will grow nearly as fast as the overall market, with persisting economic weakness in the Eurozone fostering an expansion of demand from the UK into other countries.

Despite the good news, there is still a lot of uncertainty in the European market and as a result growth in computer equipment and communications will remain subdued "as firms avoid making big capital-intensive investments".

According to Forrester, spending on business technology that aims "to win, serve and retain customers" is less than a third of European tech spending but is growing fast.

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