European IT services market accelerates with cloud and compliance driving 2030 growth forecasts

The European IT services sector is set to surpass USD 638 billion by 2030, driven by cloud adoption, regulatory demands, and digital transformation across industries, according to Mordor Intelligence.

The European IT services market is on a strong growth trajectory, with forecasts indicating significant expansion driven by transformative technological adoption and regulatory compliance demands. According to a report by Mordor Intelligence, Europe’s IT services market size is expected to rise from approximately USD 462 billion in 2025 to USD 638 billion by 2030, reflecting a steady compound annual growth rate (CAGR) of 6.7%. This growth is largely propelled by increased cloud adoption, managed security services, ERP modernization, and environmental, social, and governance (ESG)-linked consulting initiatives, as enterprises across sectors ramp up investments to navigate complex digital and regulatory environments.

Cloud computing stands out as a critical enabler, with about 45% of IT service expenditure directed towards cloud programmes in 2025, as cited by Mordor Intelligence. This trend aligns with broader European priorities emphasizing digital sovereignty and compliance with stringent regulations such as GDPR, DORA, and NIS2. The drive for cloud adoption is also contributing to shifts in delivery models, with nearshore and onshore options gaining traction as enterprises balance cost efficiency with operational continuity.

Industry-specific patterns are noteworthy. Germany is emerging as a leader in manufacturing digitization, while financial services transformation is spearheaded by the United Kingdom. Meanwhile, countries such as France, Italy, and Spain are advancing the scaling of cloud-based ERP (Enterprise Resource Planning) solutions, which itself is a rapidly expanding segment. Grand View Research highlights the European ERP software market reaching an estimated USD 35 billion by 2030, growing at an annual rate of over 9%, driven by customized cloud ERP systems tailored to enhance digital transformation.

The European cloud computing market exhibits even more pronounced growth, with Mordor Intelligence forecasting a nearly doubling in value from USD 221 billion in 2025 to approximately USD 468 billion by 2030, growing at a robust 16.2% CAGR. The development of sovereign-cloud initiatives in countries like Germany and France reflects broader geopolitical and regulatory influences that compel data localization and compliance within European borders.

Security remains a top priority amidst rising cyber threats and evolving EU regulations, which is fueling substantial investments in managed security services. European companies are increasingly deploying sophisticated frameworks to safeguard data integrity and meet compliance mandates, further reinforcing the IT services market’s expansion.

The small and medium enterprises (SMEs) segment is becoming a noteworthy contributor to market growth. Grand View Research underscores strong demand for IT infrastructure and AI adoption within SMEs, which complements the larger enterprises’ digital agendas. This democratization of IT services adoption across business sizes supports an overall market CAGR closer to 9.7% as projected by some analysts.

Key global and regional players shaping the European IT services landscape include Capgemini SE, Tata Consultancy Services Limited (TCS), IBM Consulting, and Atos SE, all of which focus on digital transformation, cloud, AI, and cybersecurity services tailored to diverse industry verticals such as BFSI (banking, financial services, insurance), healthcare, manufacturing, telecom, and public sector.

In summary, the outlook for the European IT services market reflects a dynamic, multifaceted growth story. It balances cutting-edge technology deployments with regulatory compliance and sustainability objectives. Enterprises across Europe are increasingly leveraging cloud-native platforms and managed services to achieve operational efficiency, security resilience, and ESG compliance, positioning the region’s market for sustained expansion through 2030.

📌 Reference Map:

• ^[1] (OpenPR/Mordor Intelligence) – Paragraphs 1, 2, 4, 6, 7
• ^[2] (Grand View Research) – Paragraphs 3, 5
• ^[3] (Mordor Intelligence) – Paragraph 2
• ^[4] (Grand View Research) – Paragraph 4
• ^[5] (Mordor Intelligence) – Paragraph 5
• ^[6] (Mordor Intelligence) – Paragraph 6
• ^[7] (GlobeNewswire) – Paragraph 3, 7

Source: Fuse Wire Services