Information and Communications Technologies (ICT) market in Spain

Spain's ICT sector stands as one of the most advanced in Europe. Significant investments in ICT infrastructure have been made through collaborative efforts between the government and private sector, aimed at expanding high-speed internet coverage and boosting digital connectivity. With a population of 48 million, approximately 94.8% of Spaniards are connected to the internet, supported by over 172,000 mobile base stations and 54.9 million mobile phones. The country boasts the largest household fiber network in the European Union (EU), covering 92% of households with very high-capacity networks.

Spain places a strong emphasis on research and development (R&D) within the ICT sector. Successful collaborations between academia, research institutions, and businesses have yielded technological innovation and progressive solutions. Spain's commitment to creating a supportive environment for technological advancements has attracted a diverse talent pool, both domestically and internationally.

Key opportunities for Canadian ICT companies in Spain

Some key subsectors and areas of opportunity for Canadian ICT companies in Spain include:

• Telecommunications Infrastructure
• Cybersecurity
• Artificial Intelligence (AI) and Machine Learning
• E-commerce and Digital Marketing.
• Fintech
• Distributed Ledger Technology (DLT)/Blockchain:
• Quantum Computing:
• Cloud Computing and hybrid cloud solutions.
• Smart city applications
• Digital Identity Solutions
• Authentication Technologies

Notable challenges for Canadian ICT companies in Spain

• Regulatory compliance (General Data Protection Regulation) and new regulations at European and Spanish levels
• Security and privacy concerns
• Competitive market, with the presence of several large multinational firms
• Fragmented innovation system, with a multitude of actors operating at different levels which leads to duplication, increased bureaucracy, and risks of governance conflicts

Spain's business landscape

Spain's dynamic business landscape is undergoing significant digital transformation across sectors, driven by substantial public and private investment. Notably, the Next Generation EU program has injected 102.2 billion CAD^{Footnote 1} into the Spanish economy, with a substantial portion allocated to digitalization through the National Recovery and Resilience Plan (NRRP). The plan allocates 28.2% of its budget (28.8 billion CAD1) to digital transformation, focusing on digitalizing businesses, strengthening digital skills, improving connectivity, enhancing public services' digitalization, and supporting research and development and digital technology deployment. This strategic approach underscores Spain's commitment to fostering innovation, connectivity, and technological advancement in both the public and private sectors.

Spain's comprehensive digital initiatives extend beyond the NRRP, with specific plans for cutting-edge technologies. The 5G National Plan aims to achieve ultra-fast broadband coverage for 100% of the Spanish territory by 2025. Additionally, Spain's national artificial intelligence (AI) strategy prioritizes integrating AI into industrial value chains, particularly within small- and medium-sized enterprises and the public administration. The strategy sets a target of 25% for the utilization of AI and Big Data by enterprises, marking an 18% increase from 2021.

Summary

The Spanish ICT market emerges as an enticing prospect for Canadian companies, propelled by Spain's proactive stance on digital transformation. The nation's commitment to embracing innovative technologies positions Spain as a dynamic market, offering a favorable landscape for Canadian firms eager to provide advanced ICT solutions.

Spain's strategic emphasis on emerging technologies, coupled with ambitious goals like achieving 100% ultra-fast broadband coverage by 2025 and integrating AI into industrial value chains, creates targeted opportunities for collaboration. This focus aligns with the evolving global ICT landscape and presents Canadian companies with avenues for innovation and partnership.

Furthermore, increased investments in AI by venture capitalists signal a growing appetite for technological innovation within the Spanish market. This trend positions Spain as an attractive destination for Canadian enterprises aiming to expand their global footprint in the ICT sector.

Spain hosts one of the world's largest and most influential ICT trade shows, Mobile World Congress in Barcelona. Other events that provide valuable networking platforms include the DESI I Digital Enterprise Show and IoTSWC (IoT Solutions World Congress).

For comprehensive information on ICT opportunities in the Spanish market, Canadian companies are encouraged to reach out to espana@international.gc.ca.