Overview

The ICT sector in Spain has quickly recovered from the recent international health crisis and has taken advantage of the digital transformation push, enabled by the EU recovery funds. Spain is one of the largest economies in the European Union with a robust range of industries. Thus, industry-specific ICT solutions continue to find good opportunities in the private sector.  U.S. companies are recognized as key suppliers of innovative products and services.

U.S. multinationals in IT equipment and software have a very strong position in the Spanish market due to their long-term commitment and presence in the market.  More than 70% of ICT-related company headquarters are in two autonomous regions: Madrid and Catalonia (the region including Barcelona). The number of ICT companies in Spain is estimated at 38,000, with an impact to Spanish GDP calculated at 22.6% in 2022. During this year, turnover related to ICT sector was estimated at $131 billion (€121.8 billion).

Leading Sub-Sectors

Telecommunication Equipment

Spain’s 5G National Plan will be a driver for equipment upgrades in Spain, not only on mobile networks, but on the further development of their backbone fiber networks. Simultaneously, Spanish telcos have embarked on a consolidation process, such as the merger between Mas Movil and Orange, which was announced in July 2022, and is pending approval of the European Union. At the same time, they are selling assets such as towers and fiber networks to specialized companies. In addition, Spanish telcos are diversifying their business by taking advantage of the broad customer base, to offer insurance, alarm systems, mobile sales, and energy. The National Markets and Competition Commission (Comisión Nacional de los Mercados y la Competencia or CMNC) publishes an annual report on the Telecommunications and Audiovisual sector in Spain.

Cybersecurity

Demand is strong, with continued emphasis on adapting companies to telework, cloud adoption and increased threat of ransomware attacks. Industrial cybersecurity solutions also have strong demand.

Cloud Computing

The trend to move to hybrid or pure cloud solutions for companies has continued to grow in 2022.

The European Cybersecurity Certification Scheme for Cloud Services (EUCS) is a framework to develop security protocols for cloud service providers. As drafts of the proposal have circulated since 2020, concerns for U.S. providers have arisen over European sovereignty requirements for the highest certification levels. The framework remains in draft form.

Artificial Intelligence (AI)

Spain is promoting public-private collaboration programs to integrate artificial intelligence into the value chains of multiple vertical sectors, to promote the digital transformation of the economic fabric. The Spanish Ministry of Economic Affairs and Digital Transformation (now Ministry for Digital Transformation and Civil Service) announced a Spanish Agency for the Supervision of Artificial Intelligence located in A Coruña, the first of its kind in Europe. The agency would oversee regulatory development aimed at minimizing the risks that may arise from the use of artificial intelligence systems and is expected to drive additional investments in the sector.

Opportunities

In 2020, the Spanish Government adopted the Digital Strategy 2025, which aims to promote the digital transformation of the country through digital connectivity, strengthened cybersecurity, digitalization of public administrations and incorporation of artificial intelligence technologies, among other initiatives.

Additional planned investments are compiled within the Spanish Government Recovery, Transformation, and Resilience Plan. The plan, announced in 2021, for the period 2021-2023 (now extended through 2026), outlines the roadmap for the modernization of the Spanish economy, the recovery of economic growth and job creation, and responds to the challenges of the next decade. This long-term perspective is expected to drive technology investment decisions both in the public and private spheres. The expected investment in these programs is $17.25 billion (€16 billion).

As an example, the Spanish Ministry of Economic Affairs is preparing two public subsidy plans for $269 million (€250.1 billion) in 2022 to extend broadband to rural areas of the country. The “Unico Broadband Program” aims to bring 300 Mbps FTTH to specific rural area, while the second plan, called “Unico Rural Development”, is centered on the Government’s commitment to provide 100% of the population with 100 Mbps connectivity. A public consultation has been launched to define the model, which can be satellite, fixed wireless access or fiber.

Digital transformation and cloud adoption is driving investment in data centers in Spain. Major technology companies that have announced commitments in the last two years to open cloud computing centers in the country include AWS, IBM, Microsoft, Google, and Oracle. According to the Spanish Association of Data Centers, the expected investment in developing data centers in Madrid is estimated to be $6.72 million (€6.25 billion). These planned investments might offer opportunities to U.S.-based SMEs active in cloud and AI solutions and services, as Spanish companies must adapt to digital transformation challenges within the next few years.

Additionally, there are opportunities in diverse areas such as cybersecurity, with special focus on zero-trust approaches and organizational resilience. Spanish industrial companies are also increasing the use of ICT solutions digital twin technology and enabling energy efficiency across different sectors.

Resources

For additional market information, please check out the entities and activities indicated below: 

• Ministry of Economy, Trade and Business
• Ministry of Digital Transformation and Civil Service
• Spanish Markets and Competition Commission (CNMC)
• National Institute of Cybersecurity (INCIBE)
• Public Sector Contracting Platform
• Spanish ICT Association (AMETIC)
• Spanish Digital Economy Association (Adigital)
• DigitalES (digital PR agency)

Tradeshows:

• IOTS World Congress Barcelona 
• Mobile World Congress Barcelona   
• Smart Cities Expo World Congress Barcelona
• Integrated Systems Europe Barcelona

U.S. Commercial Service Spain
ICT Specialist: Jesus Garcia

Tel: (+34) 913 081 578 
e-mail: Jesus.Garcia@trade.gov