Bulgaria ICT Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 8.95 Billion |
| Market Size (2029) | USD 10.45 Billion |
| CAGR (2024 - 2029) | 3.15 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Bulgaria ICT Market Analysis
The Bulgaria ICT Market size is estimated at USD 8.95 billion in 2024, and is expected to reach USD 10.45 billion by 2029, growing at a CAGR of 3.15% during the forecast period (2024-2029).
Bulgaria's ICT market is experiencing growth, driven by an increased emphasis on digital technology, cyber security, artificial intelligence, robotics, healthcare, and IT.
- Bulgaria's ICT market is growing rapidly, propelled by various factors. The nation's skilled and economical workforce, bolstered by robust government backing and tax incentives, attracts substantial foreign investments. Additionally, rapid digital transformation, especially in finance, healthcare, and education, is driving the demand for advanced ICT solutions. Moreover, the growth of IT infrastructure, marked by the rise of high-speed internet and data centers, underpins the surge in cloud services, software development, and outsourcing, propelling Bulgaria's ICT market.
- Moreover, high internet penetration and digital literacy rates among Bulgaria's population drive increased demand for IT services. According to Eurostat, in 2023, the proportion of urban households in Bulgaria with internet access rose by 1.8 percentage points, marking a 1.97% increase from the previous year. This surge propelled the share of connected urban households to a record high of 93.07% in 2023, showcasing a consistent upward trend over recent years.
- The Bulgarian government, through initiatives such as the "Digital Agenda for Bulgaria" and the creation of the eGovernment State Agency, actively fosters the growth of its ICT sector. These endeavors focus on enhancing digital infrastructure, expanding e-government service utilization, and propelling the nation's digital evolution.
- In May 2024, the World Bank collaborated with the Bulgarian government on e-government and digital transformation initiatives. Expanding on their collaboration, World Bank specialists would collaborate with Bulgaria's Ministry of e-Government for the next 19 months. They would focus on establishing the strategic, organizational, and technical pillars for data governance and spaces. This includes evaluating data governance, availability, and quality within the public sector, providing suggestions for a National Data Strategy and Governance Framework compliant with EU laws, and assessing the feasibility of data spaces in key Bulgarian sectors.
- The increasing internet usage is fuelling the growth of the ICT market, elevating the demand for digital services and products. This rise in connectivity isn't just promoting the uptake of cloud computing, e-commerce, and digital communication tools; it's also catalyzing advancements in IoT, AI, and cybersecurity, addressing the escalating demand for a wide range of advanced online solutions.
- However, concerns over data security and privacy, coupled with the substantial CAPEX demands of advanced telecom infrastructure, are poised to hinder market growth opportunities throughout the forecast period.
Bulgaria ICT Market Trends
Cloud Technology is Expected to Witness a Growing Demand
• Bulgaria's ICT market is experiencing significant growth, driven by a surge in cloud technology adoption. Businesses are increasingly turning to cloud services and infrastructure, enabling them to enhance efficiency and scalability as they embrace digital transformation.
• Furthermore, the country prioritizes cybersecurity and data protection, which is driving investments in cloud technologies. This emphasis is attracting a diverse range of both local and global players, propelling market expansion. By placing a significant emphasis on security, Bulgaria is encouraging innovation and opening avenues for new applications and services.
• In November 2023, IBM introduced the IBM Sofia Accelerator program, a 12-week initiative tailored to empower Bulgarian startups. The program focuses on leveraging AI and Cloud technologies to accelerate innovative solutions for the enterprise market. The company has extended invitations to 10 startups to collaborate in co-creating industry-specific solutions. These solutions, powered by IBM technology, aim to foster innovation and deliver tangible value to businesses in healthcare, retail, telco, energy, utilities, and beyond sectors.
• Furthermore, as internet-connected households in the country surge, the demand for cloud technology is on the rise. Cloud solutions offer scalable storage and computing capabilities, given the increasing trend of multi-device usage within households. This, in turn, enables seamless data synchronization, further fueling the rise of remote work. This surge also drives the uptake of cloud-based services, like streaming, online gaming, and smart home technologies, all reliant on robust cloud infrastructures.
• According to Eurostat, in 2023, the percentage of Bulgarian households with internet access held steady at approximately 88.5%, mirroring the figures from 2022. Despite this stability, 2023 marked a notable high for internet penetration, matching the 88.5% seen in the previous year. This increasing number of households gaining internet access within the country is poised to substantially boost market growth opportunities.
The IT and Telecommunication Sector to Witness the Significant Adoption of Market
• Bulgaria's IT and telecom sector is witnessing significant growth, driven by widespread technology adoption. The economy and government actively promote digitalization, which is evident in investments across digital infrastructures, devices, software, and services. This digital shift has benefited users and paved the way for new business opportunities.
• The growth of Bulgaria's ICT market is driven by a rising need for IT and telecom services, which are crucial elements in the country's digital evolution. The growth of high-speed internet, coupled with the extensive embrace of 5G networks, has enhanced connectivity and catalyzed the swift proliferation of cloud computing, IoT, and remote work solutions.
• In November 2023, Infosys boosted its European presence and opened a proximity center in Sofia, Bulgaria, focused on advancing AI and cloud solutions for regional clients. Aligning with its strategy to enhance human potential by focusing on local talent, Infosys is set to open a new state-of-the-art center. This move not only allows Infosys to attract but also to re-skill and up-skill 500 new employees. These professionals will be immersed in global projects centered on next-gen digital technologies. These include Infosys Cobalt Cloud Solutions, Infosys Topaz AI & Automation, Data and Insights, IoT, 5G, and software engineering over the next four years.
• The IT and telecom sector in Bulgaria is experiencing significant growth, driven by the nation's increasing social media involvement. The rise in social media engagement is driving a notable increase in data usage, highlighting the demand for faster internet speeds and robust telecom infrastructure. According to StatCounter, as of May 2024, around 97.98% of the Bulgaria population used Facebook, whereas, in October 2023, around 96.86% of the Bulgaria population used Facebook.
Bulgaria ICT Industry Overview
The Bulgarian ICT market is moderately competitive due to the presence of significant players like Tata Consultancy Services (TCS), IBM, and Oracle Corporation. Players in the market are widely adopting strategies such as partnerships and product launches to enhance their overall product offerings and gain sustainable competitive advantage.
• February 2024: Evrotrust, a Bulgarian digital identity and trust services provider, recently secured a significant EUR 3.3 million investment. The funding was led by Silverline Capital, a private fund specializing in mezzanine and equity solutions for mid-market enterprises. This investment is assigned for Evrotrust's strategic expansion into new European markets, with a specific focus on broadening its reach into the retail and SMB sectors.
• December 2023: IKEA Bulgaria launched an Artificial Intelligence chatbot, "Sofia," leveraging Microsoft's advanced OpenAI GPT-4 technology. The initiative stems from IKEA's commitment to pioneering customer-centric solutions. By harnessing this advanced technology, IKEA aims to broaden its service offerings and enhance the overall shopping experience, ultimately saving customers valuable time.
Bulgaria ICT Market Leaders
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Tata Consultancy Services (TCS)
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The International Business Machines Corporation (IBM)
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Hewlett-Packard (HP)
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Honeywell International Inc
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Oracle Corporation
*Disclaimer: Major Players sorted in no particular order
Bulgaria ICT Market News
- January 2024: INSAIT has introduced BgGPT, the first open large language model tailored specifically for the Bulgarian market. This innovative model caters to a wide spectrum of users, including both public and private entities. The development of BgGPT is mainly a part of INSAIT’s strategy, aiming to create an open and accessible AI for societal and business advancement. BgGPT, tailored for the specifics of the Bulgarian language, empowers the development of applications across various sectors, including education, business, healthcare, and public administration in Bulgaria.
- January 2024: Privately-owned US cloud company Redis announced its expansion in Bulgaria with the inauguration of a research and development center in Sofia, the capital. The company revealed its choice of Ivan Atanassov, previously leading engineering at Uber in Sofia, to spearhead this new venture.
Bulgaria ICT Market Report - Table of Contents
1. INTRODUCTION
1.1 Market Definition and Scope
1.2 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness-Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Implementation of 5G is Back on Track
5.1.2 Growing demand for Cloud Technology
5.2 Market Restrain
5.2.1 High Cost of Digitalization
5.3 Impact of COVID-19 on the IT Spending
6. KEY TECHNOLOGY INVESTMENTS
6.1 Cloud Technology
6.2 Artificial Intelligence
6.3 Cyber Security
6.4 Digital Services
7. MARKET SEGMENTATION
7.1 By Type
7.1.1 Hardware
7.1.2 Software
7.1.3 Services
7.1.4 Telecommunication Services
7.2 By Size of Enterprise
7.2.1 Small and Medium Enterprises
7.2.2 Large Enterprises
7.3 By Industry Vertical
7.3.1 BFSI
7.3.2 IT and Telecom
7.3.3 Government
7.3.4 Retail and E-commerce
7.3.5 Manufacturing
7.3.6 Energy and Utilities
7.3.7 Other Industry Verticals
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Tata Consultancy Services (TCS)
8.1.2 The International Business Machines Corporation (IBM)
8.1.3 Hewlett-Packard (HP)
8.1.4 DXC Technology
8.1.5 Honeywell International Inc
8.1.6 Oracle Corporation
8.1.7 SAP SE
8.1.8 Cisco Systems, Inc.
8.1.9 Dreamix Ltd.
8.1.10 Accedia JSC
8.1.11 Scalefocus AD
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Bulgaria ICT Industry Segmentation
ICT, an umbrella term encompassing Information Technology (IT), covers a wide array of communication technologies. These include wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and various media applications. Collectively, these technologies empower users to store, access, transmit, retrieve, and manipulate information in digital formats.
The Bulgarian ICT market is segmented by type (hardware, software, services, and telecommunication services), size of enterprise (small and medium enterprises and large enterprises), and industry vertical (BFSI, IT and telecom, government, retail and e-commerce, manufacturing, energy and utilities, and other industry verticals).
The market sizes and forecasts are provided for a value of USD billion for all the above segments.
| By Type | |
| Hardware | |
| Software | |
| Services | |
| Telecommunication Services |
| By Size of Enterprise | |
| Small and Medium Enterprises | |
| Large Enterprises |
| By Industry Vertical | |
| BFSI | |
| IT and Telecom | |
| Government | |
| Retail and E-commerce | |
| Manufacturing | |
| Energy and Utilities | |
| Other Industry Verticals |
Bulgaria ICT Market Research FAQs
How big is the Bulgaria ICT Market?
The Bulgaria ICT Market size is expected to reach USD 8.95 billion in 2024 and grow at a CAGR of 3.15% to reach USD 10.45 billion by 2029.
What is the current Bulgaria ICT Market size?
In 2024, the Bulgaria ICT Market size is expected to reach USD 8.95 billion.
Who are the key players in Bulgaria ICT Market?
Tata Consultancy Services (TCS), The International Business Machines Corporation (IBM), Hewlett-Packard (HP), Honeywell International Inc and Oracle Corporation are the major companies operating in the Bulgaria ICT Market.
What years does this Bulgaria ICT Market cover, and what was the market size in 2023?
In 2023, the Bulgaria ICT Market size was estimated at USD 8.67 billion. The report covers the Bulgaria ICT Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Bulgaria ICT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Bulgaria ICT Industry Report
Statistics for the 2024 Bulgaria ICT market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Bulgaria ICT analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Bulgaria ICT Market Report Snapshots
