Italy - Country Commercial Guide
Information and Communications Technology (ICT)

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2021-10-29

Overview

Digital Transformation continues to be a priority for Italian companies and Government agencies both at the local and national level. The ICT sector was resilient through the first nine months of 2020 with 18.5% of ICT companies increasing revenue and 24% reporting same revenue as in 2019. The outlook for 2021 is positive with 58.4% of companies believing revenue will increase. 

The Italian ICT market was valued at an estimated €31 billion in 2019 after growth of 2.3% over 2018. Estimated annual average growth of 1.6% is expected for the period 2018 – 2022.

Digital Transformation continues to drive spending in Cloud Computing, Mobility, Social Business, Big Data and Analytics. Investments are also growing in Innovation Accelerators such as Artificial Intelligence, Virtual and Augmented Reality VR/ AR, Robotics, the Internet of Things (IoT) and Blockchain.

In terms of volume and growth, the Cloud for Public Administration or “national cloud” project proposed by the current government is a major catalyst for ICT investments.  Spending by Italian companies in 2020 was estimated to exceed €2.5 billion, an increase of 24.4% compared to 2019. Infrastructure cloud services (IaaS) and Platform cloud services (PaaS) were expected to record higher growth in 2020. Sixty percent of large companies have already implemented at least one IaaS service, followed by PaaS services and SaaS services (+45%).

Emerging Technologies

Internet of Things — In 2019, IoT spending totaled €15.6 billion, an increase of 24% over 2018. Spending was expected to increase by 19% in 2020, reaching €18.6 billion.

Artificial Intelligence (AI) — In 2019, spending totaled an estimated €425 million, an increase of 39.1% over 2018. Spending was expected to reach €570 million in 2020. Estimates are that 35% of workers will have started working with autonomous robots or autonomous vehicle by 2023.  The biggest users of AI technologies are banking and finance, advanced manufacturing, utilities, and insurance sectors.

The Virtual Reality/Augmented Reality — In 2019, spending reached €16 million, an increase of 160.5% with respect to 2018.  For 2020 analysts expect a growth of 285.6%, equivalent to €61 million.

Blockchain — The Italian Blockchain market is still small, valued at €26 million in 2020 but expected to grow at an annual rate of 20% over the next three years (2021-2024).

NATIONAL RECOVERY AND RESILIENCE PLAN (NRRP) AND THE ICT MARKET

The NRRP is Italy’s investment and reform plan for recovery from COVID-19. The plan designates €40.3 billion for Digitalization, Innovation, Competitiveness, Culture and Tourism.  For example, investments will be made for the digitalization of the Public Administration, such as in Cloud and Big Data and in the ultra-fast broadband and high-speed connection, such as in the installation of 5G.

Some of the investments include:

 Enabling and facilitating Cloud migration

€1 billion

 Data and interoperability

 €646 million

Digitalization of large Central Administrations

 €611.2 million

 Digital infrastructure

 €900 million

Ultra-fast networks - Ultra-wideband and 5G

 €6.71 billion

 Digital services and digital citizenship

 €2.01 billion

 Transition 4.0

 €13.38 billion

 

TRADE SHOW

SMAU;  Italy’s largest ICT fair held in Milan in 2021 and with subsequent editions in other Italian cities throughout 2022.

TRADE ASSOCIATION

Assintel is the national trade association of ITC companies.

Source: Assintel Report 2020;