Belgium ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Belgium ICT Market size is estimated at USD 27.21 billion in 2024, and is expected to reach USD 46.44 billion by 2029, growing at a CAGR of 11.28% during the forecast period (2024-2029).

The Belgian ICT market is experiencing robust growth, driven by increasing digitalization and government initiatives to enhance technological infrastructure. The market's expansion is supported by the rising demand for advanced communication solutions and IT services.

Key Highlights

• Government initiatives and policies are playing a pivotal role in driving growth in the Belgian ICT market, emphasizing digital transformation and innovation. Notably, the Government's digital strategy for education seeks to create a comprehensive digital ecosystem, spanning hardware and software infrastructure. It also focuses on enhancing digital literacy among education stakeholders and fostering partnerships with academic and EdTech sectors.
• Belgium is aiming to be a green, inclusive digital champion. A growing focus on sustainability is driving the adoption of energy-efficient technologies and practices within the ICT market. The introduction of "Right to Repair" in May 2024 is a crucial step. The introduction of universal charger regulations is also expected to save money and avert more than 11,000 tonnes of electronic waste each year.
• The increasing shift toward cloud computing for enhanced business agility and cost efficiency is driving the demand for ICT solutions. Companies in Belgium are adopting cloud services for their application and storage purposes at a rapid pace.
• Continuous advancements in technology, including AI, IoT, and 5G, are creating new opportunities and driving the market’s growth. For instance, the government of Belgium is spending close to EUR 11 million for various 5G projects.
• However, complex regulatory requirements and compliance issues can hinder the swift adoption and deployment of new ICT technologies, potentially restraining the market’s growth. EU-level frameworks like the Digital Markets Act, the Digital Services Act, the AI Act, the Data Act, and NIS2, among others, are expected to have a significant impact on the Belgian regulatory environment. It is challenging to integrate them and divide the competencies amongst various public authorities, thus adding more complexity to the already complicated system.

Belgium ICT Market Trends

Rapid Deployment of 5G and Internet Networks Driving Growth

• The Belgian government is planning to fund additional 5G projects. In February 2024, - it announced the winners of its 5G pilot project tender. This was the second 5G tender after it awarded EUR 20 million to 21 pilot projects in 2023. The projects cover a wide range of domains, such as industry, health, maritime, and public safety. They aim to demonstrate how 5G can enable new solutions and services that can improve efficiency, safety, sustainability, and quality of life.
• Additional projects on the horizon include 5G-SafeAlert. This initiative leverages speed, acceleration, and directional data from cyclists and motorized vehicles to identify potential risks and alert drivers proactively. Another venture, 5G HEALTH, is dedicated to trialing and deploying pivotal 5G applications within a live hospital setting, encompassing remote healthcare services and training programs.
• The national broadband plan aims to eradicate any remaining 'white areas' (regions lacking high-speed internet access). The initiative aligns with the objectives of the European Gigabit Connectivity 2025.
• Sarens, a Belgian multinational headquartered in Wolvertem, reported that Proximus, in collaboration with the Belgian Infrastructure Fund, is set to expand fiber installations in the country. The plan aims to add fiber connections to 1.7 million new households, pushing fiber coverage to an impressive 95% of both residential and commercial properties.
• Furthermore, Statbel, the Belgian statistical office, reported a significant surge in household internet connectivity. Between 2008 and 2021, the percentage of Belgian households with internet access leaped by 29 percentage points. By 2023, this figure peaked at 94%, a stark contrast to the 64% recorded back in 2008.

IT and Telecom Industry Driving the Market

• Belgium boasts one of the highest internet penetration rates in Europe, fostering the adoption of ICT services and products. For instance, according to Eurostat, the Level of internet access was 94.48% in December of 2023.
• As per the UN Agency for Digital Technologies, on March 1, 2024, Belgium unveiled a fresh initiative to promote digital and IT services: a monthly telecom social rate of EUR 19 (approximately USD 21) tailored for its low-income populace. Complementing this, the Belgian government is injecting over EUR 10 million (USD 11 million) into initiatives aimed at bridging the digital divide and fostering digital literacy.
• In 2023, Belgium's household internet penetration, as reported by Eurostat, held steady at approximately 94.48%. Notably, 2023 marked the peak for internet access among Belgian households during the period.
• In November 2023, Infosys, an IT and consulting services firm, announced a collaboration with Belgium's Proximus to spearhead an IT modernization and consolidation initiative. As part of this venture, Infosys will integrate pivotal IT components from a Proximus affiliate into the primary IT infrastructure. This consolidation aims to empower Proximus to extend its service portfolio, including fiber and innovative digital offerings, to a broader customer base.
• Private entities are pivotal in enhancing regional internet connectivity. In May 2024, Romanian telecom giant DIGI Communications debuted in Belgium, partnering with Citymesh (a division of IT powerhouse Cegeka). Initially, DIGI's mobile services will leverage the infrastructure of local operator Proximus.

Belgium ICT Industry Overview

The Belgian ICT market is fragmented in nature. Some major players in the market studied are Google, Microsoft, AWS, IBM, etc. Players in the market are adopting strategies such as partnerships, agreements, innovations, and acquisitions to enhance their service offerings and gain sustainable competitive advantage.

• May 2024: Digi, a US-based Industrial Internet of Things company, declared its entry into the Belgian market. The company's strategy involves establishing a network to directly challenge Belgium's three incumbent mobile network operators (MNOs). Initially, Digi will function primarily as a Mobile Virtual Network Operator (MVNO), leasing capacity from Proximus. However, Digi's long-term vision is to construct its own network, complete with 4,500 antennas. By the end of 2025, Digi aims to blanket 30% of Belgium with its proprietary network.
• May 2024: Brussels announced its plans to roll out 5G services by September 2024, following a relaxation of radiation regulations. An executive order, alongside parliamentary approval, has paved the way for the deployment of 5G antennas across the city. Major local operators, including Orange, Proximus, and Telenet, have affirmed their intentions to apply for permits from the regional environment authority. Once approved, they will swiftly transition from 4G to 5G by upgrading their existing antennas.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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