Sweden ICT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Swedish ICT market is expected to register a CAGR of 7.9% over the forecasted period. The Swedish government published its Digital Strategy to make Sweden the best in the world at utilizing digitization opportunities. The strategy establishes five priorities to attain this overall goal: digital literacy, digital security, digital innovation, digital leadership, and digital infrastructure. Under each aim, a few significant policy areas are identified.

Key Highlights

• Digitization opens up new possibilities for future social services, health, and medical care. Modern information and communication technology can make it easier for people to participate in their own health and social care, facilitate contact between people and service providers, and provide more efficient support systems for service providers' staff. The Swedish Government and the Swedish Association of Local Authorities and Regions have resolved to establish a unified vision for eHealth until 2025 in order to encourage efforts to capitalize on digitalization potential in social services and health care.
• As a result of the ICT sector's rapid growth in Sweden and its significant contribution to the nation's socioeconomic development, the Government of Sweden is motivated to create favorable policy and regulatory environments for the ongoing expansion of 5G, the Internet of Things (IoT), Artificial Intelligence (AI), Cloud Technology, Blockchain, Machine-to-Machine (M2M), and many other sectors. To make ICT one of Sweden's key economic growth engines, the government must enact the necessary policy measures. Technological advancements will propel the investigated market in the region.
• ICT's significant benefit is removing classroom education barriers during the pandemic. ICT is helping to connect more and more people to the education system through part-time and distance learning. E-learning is another form of education that provides free education for all individuals. As a fundamental driver of digital transformation, digital innovation can bring new products and services, create new business models and market opportunities, and increase efficiencies in the public sector and beyond.
• Swedish enterprises employ more fundamental digital technologies and advanced digital tools than many other countries. However, there is still room for improvement in the use of digital tools in business operations, particularly in supply chain management and customer relationship management. The 'digital lift' program of the Swedish Agency for Economic and Regional Growth could be improved by putting more attention on digital business processes.
• Moreover, Swedish enterprises are slow to implement big data analytics and data-driven innovation. Sweden should create a strategic strategy and practical initiatives to boost the use of big data analytics in Swedish businesses, particularly SMEs. It should also improve circumstances for attracting foreign talent, for example, by establishing centers of excellence and expanding on existing initiatives to integrate immigrants.

Sweden ICT Market Trends

Cloud Segment is one of the factors driving the market

• The market for cloud computing in Sweden is expected to expand, and consumers and enterprises are adopting the technology more frequently. Future-oriented technologies that support the ecosystem's smooth adoption of SaaS, IaaS, and PaaS products include AI, ML, advanced analytics, and immersive media. Moreover, cloud computing has enabled an entirely new delivery model for software.
• Further, in the past, businesses had to spend millions on implementation costs, software licenses, and physical infrastructure. This made it impossible for small and medium-sized companies to use IT successfully. Due to the cost of IT, large corporations continued to employ outdated, ineffective technologies and physical infrastructure. This made it impossible for small and medium-sized companies to use IT successfully. Due to the cost of IT, large corporations continued to employ outdated, ineffective technology. All of this has changed as a result of cloud computing.
• In October last year, Google Cloud announced the launch of its first cloud region in Sweden to support the country's digital transformation and to fulfill the growing demand for cloud services locally and globally. The new cloud region will help bring Google innovations closer to our local customers and give them a platform that allows enterprises to function more efficiently.
• Similarly, Microsoft Corporation announced the opening of its newest sustainable data center region in Sweden, with locations in Gävle, Sandviken, and Staffanstorp. Microsoft's new world-class data centers in Sweden are now up and running. Microsoft Azure and Microsoft 365 services are available right away, and customers can store their data in the country.
• According to MIT Technology, the index ranking of cloud infrastructure consists of various data points that indicate how well each country is served by telecommunications networks and computing resources that enable cloud-centric production models. Also, the cloud infrastructure ecosystem index for Sweden is 8.43, which is higher than that of Germany, France, and many other countries.

The Telecommunication Sector is expected to drive the market

• Due to security concerns, the Swedish government has prohibited Chinese vendors Huawei and ZTE from taking part in the rollout of 5G networks. The Swedish Post and Telecom Authority also said that products from Chinese companies Huawei and ZTE can't be used for new installations or to set up central functions for radio use in the frequency bands. These products will be phased out by January 1, 2025.
• Sweden's Post and Telecom Agency launched a consultation on revisions to the minimum coverage specifications for licenses in the 900 MHz, 2100 MHz, and 2.6 GHz bands (Post & Telestyrelsen, PTS). The regulator wants to change the terms of the 2100 MHz and 2.6 GHz concessions so that major railroad lines are included in operator rollouts.
• Further, for its last year's broadband support program, the Swedish Post and Telecom Agency (Post & Telestyrelsen, PTS) is already accepting applications. The regulatory body has cash available to disburse to operators wishing to build broadband infrastructure in rural areas - roughly SEK 1.3 billion (USD 130 million). Networks must offer connectivity with a minimum 1 Gbps download speed.
• In March last year, the Swedish Post and Telecom Agency (Post & Telestyrelsen, PTS) proposed a slew of new laws that, according to PTS, will be incorporated into a revision of the nation's electronic communications law that is set to take effect on August 1. Among the new rules are changes to the requirements for subscriber information, network security, number portability, switching service providers, and emergency communications.
• The growing number of internet users in the country, combined with the increasing adoption of broadband services, is driving up demand for the telecom industry. According to the Ookla Speedtest Global Index, Sweden ranked 26th with a median fixed broadband download speed of 107.42 Mbps in December last year. The number of people who have fixed broadband service is growing by a lot, which is making more people want to use telecom services.

Sweden ICT Market Competitor Analysis

Sweden's ICT market is moderately competitive and moving toward fragmentation, as the market currently consists of various significant players. Several key players in the ICT market are making constant efforts to bring about advancements. Some of the key developments in the market are:

In January 2023, Concordia University in Montreal will collaborate on its new Applied AI Institute with Sweden's artificial intelligence center. AI Sweden, situated in Gothenburg, has been collaborating with the Canadian school for over a year to finalize the collaboration, which will focus on decentralized artificial intelligence and federated learning. Certain projects will focus on joint research, teaching, and learning in areas of mutual interest, such as sharing scientific information, letting faculty and students move around, and letting students move around.

In February 2022, Mila, the world's largest academic deep learning research facility, announced a collaboration with AI Sweden, the Swedish national center for applied artificial intelligence. Since the fall of 2021, AI Sweden and Mila have worked together to create synergies that will improve the connection between the two countries and give Sweden an edge in AI.

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