Information and communications technologies (ICT) market in Sweden

Sweden is one of the most digitized countries in the world and the global leader in connected devices per person. It is also home to some of the world’s largest telecom companies.

Sweden contributes significantly to information and communications technologies (ICT) expenditure in the Nordics and spends considerably more than most countries in R&D as a percentage of GDP. ICT accounts for nearly 5% of the Swedish GDP, and forecasts for the Swedish ICT market project it to nearly double by 2032.

Nearly 4% of Swedes work as ICT specialists (equivalent to 1 in 25 Canadians). This is the highest share in Europe. In Stockholm, the concentration of ICT jobs 2.4 times greater than the national average.

Sweden offers an excellent ICT ecosystem, with:

  • resilient, low-carbon digital infrastructure
  • world-leading network and technology readiness
  • experienced investors

Sweden is also a friendly country for business, with very high transparency and low bureaucracy. Lastly, almost every Swede speaks fluent English, and many companies have English as the internal working language.

As a result, Sweden attracts many international companies, with some of the world’s biggest companies investing heavily into the Swedish ICT sector. A recent CAD 10 billion investment to develop artificial intelligence (AI) infrastructure in Sweden stands among the largest AI investments in Europe, supporting Sweden’s national AI strategy and the expansion of its AI technology infrastructure.

By 2025, the Swedish government aims to achieve near-universal gigabit broadband coverage and enhanced 5G mobile networks. It is also implementing an AI Commission roadmap to boost AI competitiveness, and an industrial strategy focused on developing strategic technologies from research to market. The government is also increasing R&D funding to support new technology and digital innovation through 2028.

Sweden’s energy mix is 99% carbon-free, with the EU’s highest share of renewables. Dozens of data centers are paid to feed heat back into the system.

Key opportunities for Canadian ICT companies in Sweden

  • Swedes are generally regarded as early-adopters and tech-savvy buyers.
  • The Swedish business culture is very similar to Canada’s, and almost everyone speaks English.
  • The CETA trade agreement between the EU and Canada allows for enormous trade tariff reductions and can make trade processes much easier.
  • Sweden is investing heavily in AI capabilities. AI Sweden had an office in Canada for three years (2021-2024), aiming to bring insights and skills to back Sweden. As a result, collaborations have been established with several Canadian companies and organizations.
  • The Swedish ICT outsourcing market is among the largest in Europe, accounting for more than half of ICT market services revenue in Sweden.
  • However, nearly half of large Swedish companies invest in in-house software development, meaning there is plenty of room for growth in enterprise software sales.
  • Sweden’s pressured labor market means high demand for skilled labor, with tens of thousands of unfilled digital jobs. Main professions in demand are:
    • ICT architects
    • Analysts
    • software engineers
    • software developers
    • system engineers

Industry highlights

4.7% contribution from the ICT sector to Sweden’s GDP in 2024. 

8.8% expected compound annual growth rate (CAGR) for the Swedish ICT market up to 2032. 

More than 40% of the Nordic ICT market is Swedish. 

1.4 mobile phones per person in Sweden. 

About 420,000 direct jobs in the ICT sector in Sweden.

CAD 39.3 billion market size in 2024. 

  • An ageing population and growth in digitization create opportunities in social services, health, and medical care. These are often tied to Internet of Things (IoT), among other areas. 
  • Cloud computing is growing quickly in Sweden and is set to expand further with the use of SaaS, IaaS, and PaaS products that apply AI and machine learning. This will help many small and medium-sized businesses in Sweden make greater use of digital technologies.
  • The Swedish government is driving the telecom sector forward, with a big push in 5G and 6G technologies and regulations.
  • There are many well-established telecom operators who are always looking for technologies that can confer a competitive advantage.
  • Existing infrastructure, including strong venture capital support, makes Sweden a welcoming market for new companies
  • Public data is openly shared and accessible to businesses.
  • There are more than 30 testbeds focusing on:
    • AI
    • IoT
    • 5G and 6G
    • gamification
    • cybersecurity
    • connectivity
    • cloud computing
    • mobility and transport tech
    • robotics
    • remote learning

Notable challenges for Canadian ICT companies in Sweden

  • The government has been slow to promote and manage the immigration of ICT specialists, although that is changing.
  • Housing in large urban areas is a challenge. Demand is much greater than supply.

Contacts

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

Additional Information

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