Bulgaria ICT Market Size (2024 - 2029)

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 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.