Overview:

The digital economy in Slovakia is monitored by the European Commission through the Digital Economy and Society Index (DESI) reports. These reports cover topics such as connectivity, digital skills, and e-government. The country’s strategy focuses on better access to digital goods and services, creating conditions for digital networks to flourish, and maximizing the growth potential of the digital economy.  

Slovakia ranks 23rd of 27 EU Member States in the 2022 edition of the DESI. Slovakia is just below or around the EU average across the indicators for human capital. 55% of Slovaks have basic digital skills, which is slightly above the EU average of 54%. The proportion of ICT specialists in total employment is 4.2%, slightly below the EU average (4.3%). 16% of ICT specialists are women compared with the EU average of 19%. Slovakia’s e-commerce scores have fallen: 13% of SMEs sell online compared with to 17% in 2020. 16% of Slovak enterprises used e-invoices in 2020 compared with 32% in the EU. Slovakia is below the EU average across the indicators for digital public services. The proportion of e-government users among internet users has decreased to 62% and is below the EU average of 64%.  

Investments that support the integration of digital technology in businesses are being implemented to improve their capacity to keep up with market developments and modernize the economy. However, the use of advanced digital technologies by enterprises remains below the EU average. Slovakia plans to provide support to businesses, particularly small and medium-sized enterprises (SMEs), for the uptake of cloud, big data and artificial intelligence (AI) technologies by means of building a network of European Digital Innovation Hubs (EDIHs) across the country. These centers will play a key role in increasing the digital intensity of enterprises and therefore they will help in the achievement of the related Digital Decade targets.  

Slovakia needs to take advantage of its significant strengths stemming from the openness of the Slovak economy and the presence of international players, its strong technical and industrial focus and its business services position. It is on these foundations that Slovakia will build its future and future priorities. The activities so far have revealed the areas of AI, Robotics, the Internet of Things and Big Data analytics as priority topics. Slovakia needs to follow key trends and adapt its support to areas of key importance for the business environment. One of the areas for strategic development is to change the approach to regulatory burden through the introduction of better monitoring of impacts on the digital environment and

In December 2020, the Slovak government signed the Berlin Declaration on Digital Society and Value-Based Digital Government, thus re-affirming its commitment, together with other European Union (EU) Member States, to foster digital transformation in order to allow citizens and businesses to harness the benefits and opportunities offered by modern digital technologies. The Declaration aims to contribute to a value-based digital transformation by addressing and strengthening digital participation and digital inclusion in European societies.  

Slovakia’s roadmap demonstrates that the country plans a significant effort to achieve the Digital Decade objectives and targets. It sets targets for 12 out of 14 key performance indicators (KPIs) and, in most of the cases, targets are aligned with the EU 2030 ambitions, except for digital skills, which is below the EU’s target. To achieve its digital transformation, Slovakia plans to allocate a total budget (excluding private investments) estimated at over EUR 2.3 billion (1.8% GDP) in 2024.  

Slovakia’s digital economy strategy and action plans indicate a strong focus on enhancing digital technologies and increasing digitalization across various sectors. Key areas of focus include:  

Supporting SMEs and Innovative Businesses: The Slovak government is aiming to boost the digitalization of small and medium enterprises (SMEs) and foster innovation, which is expected to drive significant growth in the digital economy.  

Investment in Digital Technologies: Emphasis on advanced technologies like AI, 5G, and blockchain is likely to contribute to economic growth by improving productivity and creating new business opportunities.  

Development of Digital Skills: By improving digital skills across the workforce and education system, Slovakia aims to enhance its overall digital capabilities, which could positively impact economic growth.  

Although Slovakia has made some progress across the dimensions during the last year, most notably on the main coverage and take-up connectivity indicators, improvements have not been sufficient to keep pace with the EU average. Digital skills across the population, from primary school students to adults, need to improve to successfully meet the challenges of digital transformation. Several national strategies underline the need to educate and upskill people in Slovakia so they can work with and use digital technologies.  

A new strategy document ‘The National Concept of Informatization of the Public Administration for years 2021-2026’ outlines a vision for more reliable and user friendly digital public services, including e-health, and it explicitly aligns with the Digital Decade targets in this domain. As set out in Slovakia’s Recovery and Resilience Plan (RRP), the Ministry of Investment, Regional Development and Informatization of the Slovak Republic (MIRRI) adopted a new strategic document, the ‘Action Plan for the Digital Transformation of Slovakia for the years 2023-2026’. The action plan presents measures to improve Slovakia’s digital performance, building on the 2030 Digital Transformation Strategy for Slovakia as well as on the 2019-2022 action plan.  

The 2030 Strategy for the Digital Transformation of Slovakia framed national policies and particular priorities regarding the ongoing digital transformation of the economy and society. The strategy followed up on the priorities of the EU Digital Single Market. At the national level, it accelerated ongoing processes in terms of building the digital market and carrying out various measures that arose from the most recent cross-sectoral policies of the EU. The strategy puts emphasis on new digital technologies such as artificial intelligence, Internet of Things, 5G technology, big data and analytical processing of data, blockchain or high-performance computers, which will eventually become a new engine of economic growth and competitiveness. Several areas were identified regarding the necessity to multiply the potential of digital transformation including economy, society and education, public services, rural development, science, research and innovation.  

The targets of the process are the citizens, whose everyday life should get simpler, and entrepreneurs, whose businesses should be supported by various incentives and whose bureaucratic burden should be eliminated.  

The strategy was followed by the 2019–2022 Action Plan for the Digital Transformation of Slovakia, which defined measures in several priority areas:  

• Improvement of education and fostering digital skills and employment for the modern era.  
• Creation of a basis for a modern digital economy.  
• Improvement of the ability of public services to innovate and use data.  
• Development and practical implementation of artificial intelligence.  

As for the digital government, the ambition is to launch and implement a ‘data-driven State’ concept in the public administration. The aim of the concept is for public administration to adopt decisions based on the best available knowledge. It is necessary to make sure that the institutions know how to use real data and make data-based (and possibly automated) decisions. Transforming the functioning of public administration organizations and processes is also key, so that such analyses can be effectively used. The action plan also proposed the continuous deployment of fully automated public administration services, meaning that the system handles filings automatically based on selected criteria.  

In December 2022, the government of the Slovak Republic approved the Action Plan for Digital Transformation of Slovakia 2023–2026 aimed to increase the digitalization of the Slovak economy and targeting especially small and medium enterprises and innovative businesses. It focuses also on developing and deploying top digital technologies and on building a resilient society. It defines a framework to promote productivity and the knowledge economy, focusing on higher value-added segments, a more competitive economy and sustainable development. It also promotes a society that thrives in the digital age, but also learns to be resilient to the negative impacts of digital technologies. The National Digital Skills Strategy and Action Plan for 2023–2026 was approved by the government in December 2022 and it contains six priority areas:  

• Institutional background (‘Governance’ model).  
• ICT specialists.  
• Digital skills for young people and teachers.  
• Digital skills for active labor market participants.
• Proportion of girls and women in ICT.  
• Digital divide and digital exclusion.  

 The main objectives are:  

• To strengthen the institutional background to create an effective coordination mechanism for digital skills within the public administration, public, academia or the business sector.  
• To further develop digital skills of students and teachers at all levels of the educational process.  
• To support the improvement of digital skills of active labor market participants and to support their upskilling or reskilling.  
• To create favorable conditions for girls and women in the IT sector to increase their number.  
• To help overcome the problem of digital divide and exclusion in Slovakia.  

The National Concept of Informatization of Public Administration of the Slovak Republic, also known as the National eGovernment Concept, has been approved by the Slovak government in December 2021. The National eGovernment Concept follows these strategic documents: the 2030 Vision and Strategy for Development of Slovakia, the 2030 Digital Transformation Strategy of Slovakia, and the National Cybersecurity Strategy 2021–2025. It contains seven strategic targets:  

• Shared services, government cloud and central common blocks.  
• Management of data.  
• User orientation, multi-canal access, life events.  
• Digital office and starting point for digital transformation.  
• Public procurement.  
• Human resources in IT in public service.  
• Cybersecurity and information security.    

It formulates a set of strategic goals, priorities and measures which aim to create a central architecture at the national level and to define policy, regulatory and other tools to build a controlled and effective level of informatization in public administration. Currently a new Action Plan for the implementation of the intended goals is being prepared.  

Market Challenges

Slovakia continues to intensify its efforts to scale up its digital economy. However, the country does not issue implementation reports or any updates to track the delivery of the policies described in the 2030 strategy of the digital transformation of Slovakia. The main barriers to enterprises integrating digital technology are the persisting administrative burden, the low awareness of financing possibilities and financial instruments. These challenges need to be considered when laying down the national strategic roadmaps detailing how Slovakia intends to contribute to the achievement of the Digital Decade targets.  

Regulatory environment, examples  

The most significant barriers and weaknesses limiting progress include unclear vision and ambiguous leadership, persistent focus on the needs of its own ministry and lack of competent capacity in state structures. The main factors behind these challenges can be identified as:  

• Political influences and rivalries instead of seeking synergies  
• Difficulty to understand central infrastructure components  
• Complex strategic-legislative framework  
• Level of ICT and knowledge readiness of the different public authority bodies.  

Failure to address these weaknesses increases the risk of threats, the most serious of which may be undermining trust in the state and its democratic orientation, failure to exploit the potential to improve the quality of life and the satisfaction index, lagging behind neighboring countries and highly skilled people drain.  

To eliminate the identified challenges, it will mainly be necessary to “distil” an essential vision of what exactly digital public services should be to meet the needs of both the state and its citizens. This vision must then be clearly communicated and managed through competent governance, supported by a clear strategic-legislative framework and, most importantly, implemented in a way that restores proper credibility and trust to the state.  

Cybersecurity

Cybersecurity is a critical aspect of information technology and digital infrastructure in Slovakia. The country recognizes the importance of safeguarding its digital assets and protecting against cyber threats. Overall, cybersecurity seems to become a priority both for the government and the private sector. The country has taken measures to address cyber threats effectively. Through a robust legal framework, national strategies, incident response mechanisms, public-private partnerships, education, and international cooperation, Slovakia aims to protect its digital infrastructure, critical systems, and citizens from cyber threats. Nevertheless, Covid-19 and outbreak of the war conflict in Ukraine has severely increased number of cyberattacks in all segments of local economy and there are several gaps that needs to be taken care of.  

Fortinet’s Cyber Threat Landscape report shows that 78 % of operational technology (OT) companies have experienced at least three attacks in the past 12 months. These have caused damage to productivity, revenue, brand trust, IPR and physical security. In 2022, 64 incidents were reported in industry and industrial processes, 22 of which were cyberattacks with actual physical consequences, representing up to a 144 percent year-on-year increase. And since Slovakia is a country with a large industrial and manufacturing sector, it is crucial to protect the safety of industrial technologies at the highest level. Cyber threats on industrial systems can have serious consequences, including business interruption, production losses and supply chain disruptions. Investing in OT security enables the country to be critically connected to cyber incidents.    

Obsolete ICT equipment is one of the issues to properly secure the systems in governmental institutions. Lack of financial resources is accompanied with demanding system of public tendering regularly taking long period of time. Cyber analysts warn that hospitals, clinics and health insurance companies might possibly lose up to half a billion euros in ransom in the event of a successful major cyberattack. The Slovak National Cyber Security Center recorded 131 of cyber incidents in the healthcare sector in 2021. According to the annual report of Dovera, health insurance company, the ransomware attacks caused serious financial losses to the hospitals paying ransom.  

Implementing robust security measures and procedures helps minimizing the likelihood of disruptions and losses of finances. Almost a third (31.3%) of SMEs is managing own cyber security issues, even though the legislation does not require them to do so. Two thirds (66.3%) of SMEs are not taking cyber security seriously. 2.4% do not have a clear idea of what the cyber security is.

War in Ukraine

Following the increase of threats in the cyberspace as a result of the war in Ukraine, the Slovak Government recently adopted the ‘Action Plan for the Coordination of the Fight against Hybrid Threats by the Ministry of Defense, including measures to fight against disinformation. When it comes to cyber security threat response, the CSIRT.SK team’s (established within the MIRRI) participation in several international cyber exercises has been assessed very positively and successfully. The MIRRI is also preparing projects to increase the level of cyber security in the country, in particular those included in the RRP.  

The Slovak government has created an online portal to act as a central hub for refugees from Ukraine. The Slovak government has also created an electronic form for temporary asylum registration. To access the form, WiFi hot spots have been set up in all borders and large capacity centers. In addition, free SIM cards with internet connection are available for every Ukrainian citizen. Finally, several job portals available in Ukrainian language have been created in cooperation with the private and public sector.  

Corruption

Slovakia ranked 49th on Transparency International’s Corruption Perceptions Index in 2022. International companies doing business with the Slovak Government or attempting to obtain licenses required by the Slovak Government to do business in the country report poor transparency in bureaucratic processes. Corruption is perceived by businesses surveyed for the Perceptions Index report as widespread in courts, government contracting and public procurement, and in the healthcare system. While the legal system generally enforces property and contractual rights, decisions may take years, thus limiting the utility of the courts for dispute resolution.  

Public Services

In 2023, Slovakia made notable progress in enhancing digital public services for citizens and businesses. However, administrative barriers in public administration, including the public procurement system, are at odds with the flexibility and agility required by the digital age. Slovakia’s public administration and public services have traditionally had a comparatively low level of digitalization, which has been a major barrier to the widespread take-up of digital public services by citizens and businesses. This is why investments in digital technologies in public administration are another strong focus of Slovakia’s RRP, under which a total of EUR 686 million is allocated to this policy area.  

According to the EU eGovernment Benchmark 2021, Slovakia is among the countries that are not making full use of ICT opportunities. Relative indicators in the Benchmark show that for all the environmental characteristics (user, government and digital context), Slovakia is below the European average. However, this is similar to the performance of other neighboring European countries. Investments are needed to improve the public administration’s efficiency and user-friendliness to reduce administrative burden and improve the business environment. The focus should be on making investments more effective. In addition, the public procurement of IT purchases requires reforms and investments to make it more efficient.  

Digital Skills

Significant challenges persist in improving basic and advanced digital skills across the population. There has been a decline in basic digital skills from 55% to 51% in 2022, below the EU average of 55%. Only a 21% of Slovaks have advanced digital skills, which is below the EU average of 26%. The proportion of enterprises that provide ICT training to their employees is 16% compared to the EU average of 20%. The rate of ICT specialists remains stable at 4.2% of total employment in the country. According to the Empirical research among industrial enterprises in Slovakia in 2022: “More than 60% of the enterprises surveyed indicated that the digital skills of the enterprise’s production job applicants among school leavers were worse than required by the enterprise. For graduates in administration, 40% of enterprises had experienced worse digital skills compared to their requirements.”  

There is no publicly funded system for the development of digital skills. Therefore, only 2% of citizens have acquired digital skills through public education programs. Education and development of digital skills are based on on-the-job training or on training paid for by the employer. The unavailability of publicly funded trainings is a barrier to the development of digital skills, especially for seniors in post-working age.  

Weaknesses in the educational infrastructure for digital skills development rest in the absence of digital learning platforms, unprepared educational staff, and no testing and certification sites. It is primarily the third sector that has been highlighting the threats resulting from this situation.  

Based on OECD data, up to 64.4% of jobs in Slovakia are threatened by automation in the future (Slovakia has been leading this ranking several times in a row), which requires employees to continuous development of their knowledge and skills so they can adapt to the ongoing change in the character of their jobs. This is further reinforced by the growing teleworking trends even in professions that are less threatened by the onset of automation. The Slovak education system needs to implement measures to ensure the Digital Decade target in basic digital skills is achieved. The curriculum reform and the measures for improving the performance of universities are still not completed.

Brain Drain

Another urgent problem in Slovakia that needs to be properly addressed to achieve the objectives and targets of the Digital Decade is the brain drain in search of better education or living conditions. According to the Institute for Public Affairs, half of young, educated Slovaks are seriously considering relocating abroad – in particular to Austria or the Czechia. This trend could significantly slow down digital transformation in Slovakia.  

Businesses and organizations would not be able to use advanced digital technologies if talented digital experts leave the country. The government plans to use reforms and investments under the RRP to help develop digital skills and expertise among companies through measures such as digital and innovation vouchers and digital innovation hubs initiatives connected with the EU digital innovation hubs network.  

Slovakia is home of a well-established and active national coalition for digital skills and jobs (Digitalna Koalicia). It groups relevant ministries, universities, associations, tech companies and the main initiatives that aim to increase people’s digital competences. The Slovak National Coalition and Slovak IT Academy coordinate the project IT Fitness test, a large testing scheme that helps people (especially students) evaluate their practical digital skills. The results show that students from more active schools that offer wider IT education opportunities score better in testing.  

Connectivity Infrastructure

Slovakia has scope to improve its performance on Very High-Capacity Networks (VHCN). With 69% of households currently covered by VHCN, Slovakia has a 10% gap compared to the EU-level of coverage. Rural coverage is also below average, as VCHN covers 35% of households in this area.  

Digital Trade Barriers  

There are no specific trade barriers and limitations on selling U.S. products and services in Slovakia.  

Slovakia is a part of the European Union. The European Commission removed online barriers, so consumers have full access to all goods and services offered online by businesses in the EU. If a U.S. company located in an EU country offers online products in another EU country, the following apply:  

The revised Payment Services Directive and new rules on cross-border parcel delivery services that are already in force:

• Rules to stop unjustified geo-blocking.  
• Revised consumer protection rules that entered into force in 2020.
• New VAT rules for online sales of goods and services that entered into force in July 2021.  

For background information, please visit New EU Rules on eCommerce.  

The Slovak Ministry of Investments, Regional Development and Informatization is the main ministry responsible for smooth digital transformation in Slovakia. More information can be found at the ministry’s website.  

Most laws are set at the EU level. The Digital Economy Chapter of our Country Commercial Guide for the European Union provides a more comprehensive overview.

Digital Trade Opportunities

For Slovakia, the potential economic and developmental benefits of digitization can reach up to EUR 16.1 billion p.a. in additional gross domestic product by 2025. This would lead to increased global competitiveness and prosperity for the country’s five million people and allow Slovakia to join the most digitally advanced economies in Europe. By exploring these opportunities, U.S. businesses and entrepreneurs can tap into Slovakia’s growing digital economy and contribute to its further development and furthermore position themselves effectively in the Central European market.  

Cross-Sector Enabling Technologies  

Communications and Networking Technologies

There is high demand in Slovakia for information and communications technology (ICT) products and services due to continuing investment from the central government, municipalities, banks, private companies, and financial service institutions. There is market demand for increasing 5G cellular coverage and internet networks, cloud storage, cyber security solutions, and the maintenance of existing network hardware and software. Automobile manufacturers, engineering companies, and energy production and distribution companies are also contributing to the growth of the ICT sector by implementing industry 4.0 and manufacturing technologies.  

The best prospects in the area of business process technology are implementation of artificial intelligence, audio-video teleworking hardware and applications, cyber security solutions, complex artificial intelligence customer services and virtual call centers solutions, cloud storage systems and application software, customized software, solutions for electronic distribution channels providing all basic retail functions, complex information systems for electronic payments and e-card payment services, decision-support information systems, information systems for management staff, and complex information systems for insurance companies.  

The best prospects in communication technologies are high speed internet for virtual teleworking solutions, slim desktops, smart phones, tablets, cloud technology, wireless application protocol (WAP) services, and 5G equipment and solutions. There are also opportunities for alternate internet providers and other new services such as AI chatbots call centers, virtual tele-education or distance learning services.  

The best prospects in digital equipment and systems are cloud-based data systems, thin workstations, data communications equipment, packet switching and routing equipment, key systems and circuit switching equipment, data and network equipment, system and application software, switched data and leased line services, streaming, cable and digital TV services, set-top boxes, and digital presentation technology.  

Analog television is no longer broadcasted in Slovakia. End-users replaced traditional CRTs and analog plasmas with digital smart TVs with flat panel displays. Advances in digital technology for the AV and Consumer Electronics markets are stimulating demand for the latest innovations in both the residential and business sectors. Internet services offered by Slovanet, T-Com, O2, Orange, UPC and SWAN usually include a “triple play” package (internet, TV on demand and VoIP).  

The consumer electronics entertainment segment of the AV market is the largest and fastest growing segment in this sector. Among television sets, there is a trend towards large digital LED, OLED and QLED units with full 8k and 4k resolution and equipped with DVBT-2, DVBS and DVBC receivers. Popular products include 4k OLED, QLED and LED TVs, set top boxes, HiFi audio equipment, and digital satellite receivers. For the business segment, popular AV products include electronic display systems and signage, projectors and control systems. Demand for wireless/mobile/portable products is fast growing.  

Good opportunities also exist in the telecommunications sector for the construction of 5G networks and the sale of innovative peripheral products and services. The largest four mobile operators in Slovakia are Orange, Slovak Telecom, O2 and Swan. Slovak Telecom is the primary land-line service provider.  

ICT-related consulting, virtual web conference solutions, virtual education and virtual training services, and teleconferencing audiovisual equipment are promising value-added services, as many SMEs and large enterprises implement the newest virtual teleconferencing solutions for telework and virtual communication with their clients. Examples include cloud data storage, thin office models, teleworking, virtual web conference and virtual trade show solutions.  

Supercomputer/Quantum Computing:  The MIRRI is considering procuring a supercomputer for Slovakia to help ensure university familiarity with supercomputing and related coding. The goal is to procure and build of a top-class high-performance supercomputing PERUN computer with a performance of approximately 50 PFLOP/s and with high energy efficiency, which in 2025 would bring Slovakia to the peak of performance in Central Europe. The MIRRI’s plan is to allocate EUR 29 million for increasing supercomputing capacity of which EUR 5 million would be allocated for the purchase of a quantum cloud. MIRRI is also considering purchasing a quantum simulator which will be installed at Technical University Kosice. U.S. companies can offer hardware, software and complete solution to build supercomputing and quantum computing centers.  

Digital Skills Development

Insufficient digital skills in public administration are a bottleneck for development. Developing digital skills in the public sector is an essential prerequisite for successfully meeting the challenges of digital transformation. Therefore, specific opportunities to develop the digital skills of civil servants should be available. Targeted investments aiming to develop specialized skills of IT and cybersecurity professionals working in the public sector are set out in Slovakia’s RRP. Considering the Digital Decade target of providing online access to all key public services by 2030, a step change will be required to achieve this.  

With a focus on STEM (Science, Technology, Engineering, Mathematics) education, Slovakia is nurturing the next generation of tech professionals. Opportunities for U.S. companies exist in educational technology, online learning platforms, and professional development solutions aimed at upskilling the workforce.

Specific Industry Sub-sectors:  

Financial Technologies

Slovakia is internationally perceived as a rapid adopter of fintech solutions on several fronts. In comparison to other EU countries, Slovakia ranked above average in contactless payments, and almost 85 % of Slovakia’s population has an account in a financial institution. Slovakia is recognized as a good testing ground for new financial solutions, and many banks frequently use Slovakia’s competitive environment to test or pilot experimental projects on a smaller scale.  

In the last few years, it has become clear that Slovaks are more than capable innovators. Tatra bank (Raiffeisen) was recognized as the most innovative digital bank in the CEE region, and Post bank has successfully launched its challenger bank – 365. bank. It is not just banks that aim to move the boundaries of the fintech sector from Slovakia. Vacuum labs became a trusted partner developing software and technological solutions for global players in the financial world. The company has also launched some ground-breaking ventures of its own – like the U.S. digital bank designed explicitly for the LGBT+ community. Payout became the only Slovak company that received the license for payment services under the PSD2. Yet, Slovakia still waits for a truly global success story in fintech.  

Slovakia is part of the European Union, which provides a stable regulatory environment and access to the EU market. Fintech companies can benefit from harmonized regulations and funding opportunities through EU programs. There is growing potential for U.S. companies in fintech innovations such as digital banking, blockchain technology, and financial management tools.  

Cybersecurity

U.S. cybersecurity companies have several opportunities to explore and contribute to the cybersecurity landscape in Slovakia. Here are some potential areas for cybersecurity companies to consider:  

U.S. companies can offer consultancy and advisory services to businesses and government entities in Slovakia including conducting risk assessments, developing cybersecurity strategies and policies, performing security audits, and providing expertise on best practices.  

Offering managed security services can be a lucrative opportunity in Slovakia. U.S. companies can provide outsourced cybersecurity monitoring and incident response.

Security software and solutions: U.S. cybersecurity firms can introduce and provide advanced security software and solutions to the Slovak market including technologies such as endpoint protection, network security, identity and access management, encryption, intrusion detection and prevention systems, and security information and event management (SIEM) solutions. Customized solutions tailored to local needs can be particularly beneficial.  

Training and Education: U.S. companies can offer training and education in Slovakia to develop local cybersecurity awareness by providing special courses, workshops and certifications to local agencies, businesses and institutions.  

Incident Response and Forensics: U.S. cybersecurity firms with expertise in incident response and digital forensics can offer their services in Slovakia. This includes assisting organizations in responding to cyber incidents, conducting investigations, and providing support in incident remediation and recovery.  

Collaboration with Local Partners: Partnering with established local players can help foreign cybersecurity companies understand the specific needs and requirements of the Slovak market and build trust among potential clients. Collaborating with local companies is a required tool to successfully apply for public procurement projects.

Internet of Things (IoT) and Smart Cities

The IoT market in Slovakia is expected to witness a significant growth in the coming years. According to projections, the revenue in this market is estimated to reach USD 1,246 million in 2024. Among various sectors, the automotive IoT segment is projected to dominate the market with a market volume of USD 323 million in the same year. This indicates the immense potential and demand for IoT solutions in the automotive industry.  

Furthermore, the revenue in the IoT market is anticipated to exhibit a steady annual growth rate of 15.04% from 2024 to 2029. This growth trajectory is expected to result in a market volume of USD 2,511 million by the end of 2029. These figures highlight the promising future of the IoT market in Slovakia. The Internet of Things market presents lucrative opportunities for U.S. businesses and investors in Slovakia. With the projected revenue growth and the dominance of the automotive IoT sector, it is evident that the country has the potential to become a significant player in this market segment.  

In Slovakia, the Smart Cities market is forecasted to attain a revenue of US$ 96.81 million by 2024. This sector is expected to display a compound annual growth rate (CAGR 2024-2029) of 16.40%, leading to a market volume of USD 206.90 million by 2029. Slovakia is witnessing a surge in the adoption of smart city technologies, with a particular focus on improving energy efficiency and public transportation. Projects related to smart cities and digital transformation of urban areas present opportunities for U.S. companies specializing in IoT, smart grid technology, smart infrastructure and urban digital solutions.

Efficient Public Administration and Digitalization

Within the Slovakia’s RRP, this priority area contains a broad range of measures, from improving the business environment, to increasing the efficiency and independence of the judicial system and efforts against corruption, to digitalizing public administration, developing e-services for citizens and business, and improving cybersecurity. Slovakia also included several multi-country projects in this investment area, which will facilitate Slovakia’s participation in EU programs relating to the digital economy, such as the European digital innovation hubs and European blockchain services infrastructure. Almost 16 % of the total RRF support for Slovakia is dedicated to this priority.  

REPowerEU

In line with the priorities of the REPowerEU initiative, Slovakia added to the RRP six reforms and eight investments aiming to reduce the country’s dependency on fossil fuels, in particular those imported from Russia. The measures are focused on promotion and deployment of renewable energy sources (particularly by improving the issuing of environmental permits and modernizing and digitalizing transmission systems including those with a cross-border dimension); improvements of energy efficiency of buildings (governmental, public and private); development of sustainable passenger transport; and improvements of education systems and skills relevant for the green transition.

E-Health and Medical Sector

E-health activities are partially available in Slovakia. While e-prescriptions are fully functional, e-medical records and e-examinations have only been partially implemented.  Slovakia’s diagnosis related group (DRG) system is expected to be fully functional in 2025.    

Most private health care centers continue to invest considerable amounts of money in new health care equipment. Slovakia has about 3,000 practicing dentists, most of whom are private practitioners who receive full payment for their services directly from patients. Private dental clinics are interested in keeping up to date on the latest technological advances and procuring new equipment to satisfy the demands of their customers. Especially promising segments for U.S. suppliers of dental equipment are laser dentistry, implants, and cosmetic/aesthetic dentistry.  

According to Slovakia’s Recovery and Resilience Plan, healthcare as one of the focus areas with planned allocation of USD 1.53 billion divided into the following sectors:  

• Modern and affordable health care including social and special care (USD 1.17 billion).  
• Humane, modern, and affordable mental health care (USD 95 million).  
• Affordable and high-quality long-term social and health care (USD 264.4 million).

There are export opportunities in robotic surgery equipment, diagnostic equipment, telecare, telemedicine, virtual medicine (in the areas of pain relief and mental health) and AI (in the development of diagnostic systems/ health services [e.g., symptoms checkers], precision medicine, genomics, chatbots, mobile apps ideally reimbursed by health insurance, and cybersecurity). Pharmaceutical and chemical industries offer R&D of new innovative, generic, and biosimilar drugs as well as export opportunities in digitalization, process automatization, and qualified personnel education. The Ministry of Health operates an R&D incubator platform called Biohub, which may be a useful gateway to finding potential business partners, exploring tech-transfer opportunities, and/or VC investment.  

Slovakia is developing its digital health sector, creating opportunities for U.S. companies in telemedicine, health data analytics, and electronic health records. U.S. firms can contribute to healthcare innovation through partnerships with Slovak medical institutions and technology providers.  

E-Commerce and Digital Services

eCommerce has grown in popularity. At the end of 2022 there were about 15,630 e-shops in Slovakia that generated sales worth EUR 2 billion (USD 2.18 billion). According to Statista, Slovakia is the 60th largest market for eCommerce with a revenue projection of USD 2.125 billion by 2024.  

E-commerce is expanding in Slovakia, driven by increasing internet penetration and consumer demand for online shopping. The largest category in Slovak eCommerce is fashion with about USD 502 million in revenues. The second is the electronics and media (USD 367 million), followed by toys, hobby, DIY (USD 232 million), furniture & appliances (USD 135 million), and food and personal care (USD 116 million). Several pandemic lockdowns increased demand for streaming services and online shopping for groceries and other products, which in turn increased demand for faster internet connections.  

U.S. providers of online services, such as video on demand, software, games, and music, should seek to penetrate the Slovak market for those products and offer fee-based services to consumers who already have fiber optic and broadband Internet connections at home. Many younger Slovaks speak English, and the general population is interested in American entertainment products. Many consumers have already purchased fiber optic connections and are receptive to cutting-edge technology.  

There are also opportunities in online retail, digital payment solutions, and logistics. With a rising demand for online payment systems and financial technology solutions, there is potential for U.S. fintech companies to offer innovative payment solutions and digital wallets.

Also, traditional businesses are increasingly adopting digital tools for better efficiency and customer engagement, creating demand for digital marketing, cloud solutions, and CRM systems, where U.S. companies might have potential.  

 Many local companies using digital marketing have implemented machine learning to better target potential customers. YouTube and TikTok have overtaken television in Slovakia as the most watched video content providers among younger audiences. Younger and middle-aged populations often get their news from social media channels. Instagram is popular among the younger generation of Slovaks. Facebook is more popular with Slovaks in their forties and up. Slovak online stores use Facebook and Instagram as their primary social media network interface with customers. Hoaxes are a growing problem, which can impact public opinion about a business or product and spread quickly via multiple social media channels. Products most likely to be sold on social media include real estate, insurance, and consumer goods.  

Digital Economy-related trade events

Regional events focusing on eCommerce are limited to Upterdam, and New Retail Summit.