Market Trends of Bulgaria ICT Industry
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.
