Lithuania’s Information and communications technology (ICT) market is one of the fastest-growing sectors in the country, driven by government initiatives and a well-established startup ecosystem. Lithuania’s focus on digital finance, blockchain technology, and e-governance has positioned it as a tech hub in the Baltic region. The country’s skilled workforce and supportive digital policies attract international companies looking to invest in the region.
Information and communications technology market in Lithuania
Key opportunities for Canadian ICT companies in Lithuania
- Diverse demand: Lithuania imports a diverse array of ICT services to support its rapidly growing digital and business services sectors. This demand is fueled by a need for specialized expertise and the presence of international companies, notably within the expanding Global Business Services (GBS) sector. Key ICT imports include software, IT consulting, telecommunications, cybersecurity, cloud solutions, and other services.
- Fintech and digital banking: Lithuania has emerged as a prominent fintech hub within the Baltic region, with a robust framework for digital banking and financial technology. The Lithuanian government actively supports fintech innovation, making it one of the top fintech-friendly jurisdictions in the European Union (EU). Canadian companies with expertise in financial technologies, such as digital payments, blockchain, and regulatory technology (RegTech), can benefit from the open regulatory environment and strong demand for secure, advanced digital banking solutions.
- Collaborative research and development (R&D) opportunities: Lithuania’s commitment to innovation and technological advancement has fostered a collaborative environment for R&D initiatives, especially in emerging technologies. Canadian ICT firms can engage in joint R&D projects in areas like artificial intelligence, cybersecurity, and blockchain. These partnerships offer a strategic advantage, enabling Canadian companies to co-develop cutting-edge solutions and expand their reach across Europe.
Industry highlights
5.2 % ICT contribution to Lithuania’s GDP in 2023
1st in the EU in terms of licensed Fintech companies
42,100 ICT specialists in Lithuania in 2023
1st globally by digital/ technological skills availability
4th globally for communication and technology in business
2nd globally for Cybersecurity
Notable challenges for Canadian ICT companies in Lithuania
- Regulatory compliance: Understanding and adapting to EU and local regulations, particularly in the fintech and data protection sectors, may require additional resources.
- Local competition: The presence of numerous local and international companies means Canadian firms may face stiff competition, particularly in the startup and fintech ecosystems.
- Small domestic market: Lithuania’s domestic market is limited in size, leading most local companies to focus on larger international markets from the outset. Canadian firms may face constraints in local demand and need to strategize for cross-border growth early on.
Lithuania business landscape
Lithuania’s ICT sector benefits from proactive government policies and significant investments in digital infrastructure. The country focuses on expanding e-governance services, enhancing digital literacy, and fostering innovation in the tech sector. Key ongoing projects include the fintech sandboxes, an energy sandbox, a transport solutions sandbox, and a proptech sandbox for real estate initiatives, blockchain technology initiatives, and investments in the country's high-speed internet infrastructure. The government also offers incentives and support for ICT firms, especially those contributing to its digital finance and e-governance goals.
Summary
Lithuania is an appealing market for ICT companies, particularly those in fintech, software development, and blockchain technology. Its favourable digital policies and a skilled talent pool create a supportive environment for businesses. Additionally, Lithuania’s strategic location within the EU offers Canadian companies valuable opportunities to expand into the European digital market. The combination of government support for digital innovation and a growing tech ecosystem positions Lithuania as an option for Canadian firms seeking to establish a presence in Europe.
For more information on ICT in the Lithuanian market, please contact Egle Jurkeviciene, Trade Commissioner (Egle.Jurkeviciene@international.gc.ca).