With most of our clients coming from the Nordic region, we are fully aware of its supportive environment for innovation and open-mindedness.

But as a tech company, we know nothing speaks as loudly as numbers.

So, to confirm that Scandinavian tech companies are among the industry’s most innovative and competitive businesses, we took a glimpse into some studies.

Here are three confirmations of the emergence of the Nordic tech scene 👇

1. An over 28% revenue growth predicted by Statista

According to Statista ’s data, revenue in the Nordic IT sector should grow by 12.91 billion USD in the next five years—that’s an almost 30% increase!

Here are the four main reasons for such dynamic growth that their experts distinguish:

👉 Customer Preferences: Nordic consumers strongly prefer innovative, reliable, cost-effective IT services. They are increasingly seeking solutions to improve operational efficiency, reduce costs, and enhance the customer experience. Areas of high demand include cloud computing, cybersecurity, and artificial intelligence.

👉 Market Trends: one significant trend in the Nordic IT services market is the surging demand for cloud-based solutions. Many regional businesses are adopting cloud computing to boost operational efficiency and cut costs. Additionally, there is a rising need for cybersecurity services, driven by the increased cyber threats and the imperative for businesses to protect sensitive data.

👉 Local Advantages: the Nordic workforce is highly skilled and firmly focused on innovation and technology. The area is home to numerous leading tech companies, creating a highly competitive IT services market.

We must also remember the region's robust social welfare system and high standard of living, which contribute to a digitally literate population.

👉 Macroeconomic Factors: the Nordic economies are stable, with high GDP per capita and low unemployment rates. The region's emphasis on innovation and technology has driven economic growth, with many businesses investing heavily in research and development.

2. Stratema: SaaS-based companies are the main transaction source

According to Stratema ’s Nordic Tech M&A Outlook from Q1 2024, the Software-as-a-Service (SaaS) market remains responsible for the majority of Nordic tech transactions.

The past few years have witnessed a robust SaaS market, with the first months of this year slightly exceeding the long-term monthly average—57 executed transactions.

For IT services and consulting, the transaction volume dropped below the previous quarters, with activity in Q1 2024 being the lowest since Q1 2023. However, the Q1 volumes remain on par with pre-COVID years.

3. The Nordic software industry is producing over double more software than its economies consumes, claims McKinsey.

According to McKinsey & Company ’s experts (Anders Jørgen Bjørndalen, Peter Dahlström, Tobias Lundberg, and Alberto Torres), the Nordic software industry can triple its current revenues by 2030. This could result in an output three to four times the region's local consumption level, up significantly from the current ratio of twice the local consumption.

As we can also read in the report, the Nordic countries remain in the early stages of their software export growth curve, leaving ample room for further expansion.

Key growth drivers include high digital adoption rates, a growing base of founders and available funding, vibrant local industry ecosystems, and supportive social policies across the Nordic region.

By 2030, Sweden is on track to produce 7.4 times its local demand, while Norway is projected to reach 4.7 times its domestic consumption, up significantly from 4.1 times and 2.2 times, respectively, in 2022.

Though trailing the regional leaders, Denmark and Finland also demonstrate strong growth in their software industries.

The Scandinavian IT sector clearly takes a global-first approach, pinpointing pockets of homogeneous demand worldwide. From its inception, it typically targets a global customer base, focusing on niche markets, segments with few large established international players, or areas where incumbent providers follow largely traditional approaches.

Moreover, these companies specialise in vertical B2B software, focusing on the leading solutions for specific industries, such as construction and energy, or thematic areas like green transition and renewable energy.

We’re happy to contribute to the growth of this forward-thinking market by supporting local companies in their sustainable & socially responsible projects.

All the statistics and predictions presented above only confirm what we already knew—the Nordic tech scene is a major player not only in Europe but also has a significant impact on the global world of technology. And it’s not showing any signs of slowing down.

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