The technology sector in Spain, a key driver of innovation and economic development, presents significant business opportunities for 2024 but also significant challenges to overcome to enhance the country’s competitive capacity.

Three key points underpinning the development of this sector should be noted:

1. Accelerated Digitization: The technology sector continues to benefit from the digitization driven by the pandemic. A study conducted by the European Commission found that about 45 percent of Spanish companies with at least 10 employees are using cloud technologies in 2023, while about 25 percent are using big data solutions and 19 percent are using the Internet of Things (IoT) in their business processes. The public sector is also moving toward a progressive adoption of digital solutions. According to the European Commission’s Digital Economy and Society Index (DESI), Spain has made significant progress in recent years such that in 2022, 68 percent of Spanish citizens used the Internet to interact with public authorities and access online services, up from 61 percent in 2018.
2. Investment in Green Technology: There is a strong focus on sustainable technologies and renewable energy. This includes investment in clean technologies and adaptation of existing ones to reduce carbon footprint.
3. Digital Infrastructure Development: The expansion of telecommunications infrastructure, such as 5G, has opened up new opportunities, particularly in the area of Internet of Things (IoT)

Business Opportunities:

Regarding business opportunities within the technology ecosystem, three major areas of focus in particular emerge

1. Digital Transformation in SMEs: In 2021, Spain launched the “Digitalization Plan 2021-2025” to promote disruptive innovations and entrepreneurship in digital. Spain’s Plan for Recovery and Resilience contains a series of investments in digital totaling 19.6 billion euros, aimed primarily at promoting the digitization of SMEs.
2. Cybersecurity: The Spanish government has increased investment in cybersecurity to address increasingly sophisticated digital threats. These investments have included the development of more robust cyber defense infrastructure and the implementation of policies to protect critical sectors, such as energy, digital and financial infrastructure.
3. Health Technology (HealthTech): The recent medical and health crises have accelerated the adoption of technology in the health sector. The push for renewal comes mainly from the need to increase efficiency and develop prevention. This vision of development has given great impetus to innovation in telemedicine, diagnostic technologies, electronic health records, and personal health management applications in general. The country has also seen growth in the production and development of innovative medical devices, including wearable devices for health monitoring.

Challenges :

1. Talent Shortage: Demand for skilled technology professionals outstrips supply: experts in fields such as software engineering, data science, and cyber security are few compared to the need, and this clearly opens the door to the need to supplement resources with professionalism from other EU and non-EU countries.
2. Regulation and Policy: Government policies and regulation, especially in relation to data privacy and AI, are likely to slow down the development of the field
3. Digital divide: Despite progress, a digital divide still exists between different regions and demographic groups in Spain. Some rural areas and disadvantaged communities have limited access to high-speed Internet and digital technologies. Reducing this gap requires investment in digital infrastructure and programs to promote digital literacy.

In summary, Spain is certainly a country that has shown a belief in the possibility of increasing its development through technology and is looking to quickly bring itself up to speed with other, more robust economies, but it needs to integrate skills and competencies and is therefore a very fertile territory for welcoming companies that can bring know-how and innovative solutions.

If you want to learn more about export opportunities in Spain, DT Consult has a local country manager, Pedro Jiulià Rius, born and based in Barcelona, who can follow companies that need guidance between the different opportunities for international expansion in the country.