As the global economy recalibrates, the IT distribution landscape is demonstrating markedly different speeds and dynamics across regions. Recent market intelligence from Spain and Argentina reveals two contrasting narratives: one of a market soaring on the back of state-driven digital transformation and another grappling with political uncertainty, where recovery is measured in volume before value.

For vendors and channel partners, understanding these divergent trends is crucial for setting strategy, allocating resources, and future-proofing their business models.

Spain: Europe’s Unlikely IT Growth Engine

While major European economies such as France, Germany, and Italy are losing momentum, Spain is emerging as a standout performer. In 2025, its IT sector has achieved nearly 15% cumulative growth, driven by resilience in the economy and powerful technology refresh cycles.

The Catalysts for Double-Digit Growth

Spain is currently leading growth in the European Union, propelled by strong domestic demand and European recovery funds. Key factors driving this momentum include:

• The 'Digital Kit' Programme: This EU-funded programme, focused on SMEs, has been a major driver. It included hardware (specifically PCs) and has been instrumental in the digitalisation of small businesses.
• The Windows 11 Migration Cycle: The impending end of support for Windows 10 is fuelling a massive device upgrade cycle, pushing vendors to change or migrate many devices.
• Consumer Demand: Even consumer channels are thriving, growing at 17% so far this year as devices purchased during the COVID-19 pandemic are updated.

The Shift from Product to Service

Beyond raw growth, the Spanish market is undergoing a fundamental transformation that signals a "harbinger of the 'As-a-Service' future". The market is clearly moving away from a product-first mentality towards a service-driven, recurring revenue model.

The top three sectors by turnover—mobile computing, software and licences, and telecommunications—now represent 52% of the total market. Critically, software and licences have jumped to the second-largest sector, showcasing a significant investment in the cloud and licensing. The rise of services and networking (both growing at double digits) reinforces this shift, signalling that vendors are increasingly focused on "selling a service" rather than just a PC.

The Spanish market presents a clear mandate for vendors: capitalise on the current growth whilst pivoting offerings to focus on value-added services and long-term contracts. Even as the Digital Kit programme is set to end in October, new grants for the

Digital Data Kit (£60 million) and artificial intelligence (£180 million) ensure that new funding streams for intelligent solutions will drive the next wave of growth.

Argentina: Navigating a Volatile, Two-Speed Recovery

The IT distribution market in Argentina tells a story of recovery defined by both momentum and volatility. Whilst the market is showing signs of a strong rebound the first months of 2025, political uncertainty and intense competition are tempering the outlook.

Volume is the Leading Indicator

For the tracked industry sectors, total growth in Argentina so far this year was a positive 29% compared to the same period in 2024. However, a closer look reveals a counterintuitive lag:

• Unit Volume vs. Turnover: In the first few months of the year, unit growth was stronger than turnover growth. This is a leading indicator, as volumes tend to rebound first before that effect is transferred to turnover.
• The Political Headwind: The uncertainty surrounding the upcoming October elections is slowing down investment decisions and moderating spending. This explains why the unit curve was "practically flat" by July and August.
• Intense Competition: The unit curve's sharper peaks and volatility show a market characterised by very intense competition.

Sector Spotlight: Network Systems

Despite these challenges, one segment stands out: network systems. This sector surpasses 2023 performance levels so far in 2025, highlighting a resilient growth pocket. Mobile computing remains Argentina’s largest sector (25% share), followed by networks (14%).

Key Takeaway for Vendors

The lesson from both markets is clear: a one-size-fits-all strategy is obsolete. In Spain, vendors should accelerate their pivot to 'as-a-service' models to capitalise on government-fuelled digitalisation and robust consumer demand. In Argentina, a more cautious and targeted approach is necessary, focusing on the volumes that presage future turnover and prioritising investments in resilient sectors like networking. Understanding these two different growth speeds is the first step toward optimising your strategy in a fragmented global IT market.

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