The latest Q1 2025 CONTEXT Forecasting Report reveals a steady recovery across the IT distribution sector, with growth expected to accelerate in the latter half of the year. AI-driven infrastructure investments, upcoming PC refresh cycles, and public sector digital initiatives are among the primary catalysts for this renewed momentum.
“After a tough period, the European IT distribution market is regaining strength,” said Anthony Frot, Research Director at CONTEXT. “The PC refresh cycle, AI-led infrastructure demand, and a more stable macroeconomic environment are setting the stage for sustainable growth. While challenges persist, the signs for 2025 are encouraging.”
Despite a slow start in Q1 2025, CONTEXT anticipates consistent quarter-on-quarter growth, with market confidence improving as economic conditions stabilise. However, risks remain, including geopolitical uncertainties in Europe, potential trade conflicts, and fluctuating exchange rates. Frot added:
’’We are seeing increased optimism among distributors, especially in AI-driven categories. The second half of 2025 is likely to be stronger as businesses resume infrastructure investments and governments push digital adoption. However, the market remains sensitive to political and economic volatility.”
