Information and Communications Technologies (ICT) market in Sweden

Sweden is one of the world's most digitized countries, the world leader in connected devices per capita, and home to Ericsson, one of the world's largest telecom companies.

Sweden accounts for nearly half of all ICT expenditure in the Nordics and spends considerably more than most countries on research and development as a percentage of gross domestic product (GDP). The ICT sector accounts for nearly 6% of the Swedish GDP, and forecasts for the Swedish ICT market project a compound annual growth rate of 8.9% up to 2027.

Key opportunities for Canadian ICT companies in Sweden

  • Swedes are regarded as early-adopters and tech-savvy buyers
  • The Swedish business culture is very similar to Canada's, and everyone speaks English
  • The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) between the European Union (EU) and Canada allows for enormous trade tariff reductions and greatly facilitated trade processes
  • Sweden is investing heavily in artificial intelligence (AI) capabilities. AI Sweden opened an office in Montréal and aims to bring Canadian expertise and skills to Sweden. As a result, collaborations have been established with several Canadian companies and organizations (Mila, Concordia University, Unity Health, and more)
  • The Swedish ICT outsourcing market is among the largest in Europe (turnover of more than CAD$5.4B in 2021), accounting for more than half of ICT market services revenue in Sweden.
  • Nearly half of large Swedish companies invest in in-house software development, so there is much room for growth in enterprise software sales
  • Sweden's pressured labour market means high demand for skilled labour, with tens of thousands of unfilled digital jobs. Main professions in demand are ICT architects, analysts, software engineers, software developers, and system engineers
  • An ageing population and growth in digitization create opportunities in social services, health, and medical care
  • Cloud computing has been growing rapidly and is expected to expand further with the adoption of Software-as-as-service (SaaS), Infrastructure-as-a-service (IaaS), and Platform-as-a-service (PaaS) products using AI, machine learning, etc., enabling Sweden's many small and medium sized enterprises to increase ICT usage

Industry highlights

5.8%

ICT sector contribution to Sweden's GDP in 2021 (source: Statistics Sweden).

8.9%

Expected Compound Annual Growth Rate (CAGR) of the Swedish ICT market up to 2027 (source: WorldData).

40%

Sweden's share of Nordic ICT market (source: Kommerskollegium).

1.3

Mobile phones per person in Sweden (source: WorldData).

450,000

Approximate number of direct jobs in the ICT sector in Sweden (source: Eurostat).

$34.7 billion CAD

Sweden's ICT market size in 2022 (source: GlobalData).

  • As per the Massachusetts Institute of Technology, Sweden's cloud infrastructure ranking is higher than Germany's or France's, among many other nations
  • The Swedish government, in cooperation with Ericsson, is actively driving the telecom sector forward, with a big push in 5G and related technologies and regulations
  • There are several well-established telecom operators (ex. Telia, Comviq, ComHem, etc.) who are always looking for technologies that can confer a competitive advantage
  • The entire ecosystem of ICT companies is very competitive, yet also conducive to new entrants via the infrastructure that is created (including the venture capital (VC) landscape)
  • There are more than 30 testbeds focusing on AI, IoT, 5G/6G, gamification, cybersecurity, connectivity, cloud computing, mobility/transport tech, robotics, and remote learning
  • Public data is openly shared and accessible to businesses

Notable challenges for Canadian ICT companies in Sweden

  • The government has been slow to promote and facilitate the immigration of ICT specialists
  • Housing in large urban areas is a challenge (demand is much greater than supply)

Sweden's business landscape

450,000 Swedes (over 4% of the population) work as ICT specialists (equivalent to more than 1 in 20 Canadians), the highest share in Europe. In Stockholm, its largest city and capital, 10% of the population is employed in the ICT sector.

Sweden offers a formidable ICT ecosystem, with resilient, low-carbon digital infrastructure, the highest levels of network and technology readiness in the world, and experienced investors. Additionally, Sweden is a friendly country for businesses, with high levels of transparency and low bureaucracy. Most Swedes are proficient in the English language.

As a result, Sweden attracts many international companies. Some companies with large ICT investments in Sweden include Apple, Amazon, Facebook, Fujitsu, Google, HCL, HP, IBM, Microsoft, Nvidia, Samsung, Oracle, Infosys, Cisco, and Tata.

The Swedish government published a Digital Strategy aiming to make Sweden the world leader in digitization, establishing five priorities to that end: digital literacy, digital security, digital innovation, digital leadership, and digital infrastructure.

Sweden's ICT sector is interconnected with the energy sector. Sweden boasts an environmentally conscious energy mix which is 98% carbon-free, representing the EU's highest share of renewable energy sources. More than 30 data centers contribute to the sustainable energy ecosystem by feeding heat back into the system and are compensated in return.

Summary

Sweden has a well-established ICT sector. Canadian ICT companies can tap into significant opportunities shaped by the early adopter culture, tech-savvy consumers, and a familiar business environment. The CETA trade agreement between Canada and the EU can provide additional benefits to Canadian companies by facilitating trade with substantial tariff reductions.

For more information on the ICT market in Sweden please contact uffe.galsgaard@international.gc.ca.

Additional Information

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