Spain ICT Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Spain ICT Market Trends and Insights

Government-funded Digital Agenda 2026 programs drive infrastructure modernization

Digital Spain 2026 mobilises USD 77 billion, the largest technology modernisation campaign ever undertaken in the country ^{[1]Gobierno de España, “Agenda España Digital 2026,” lamoncloa.gob.es}. Funds allocated under the Recovery, Transformation and Resilience Plan direct USD 44.4 billion to broadband, AI and digital-skills projects, which in turn trigger private data-centre pledges exceeding USD 22 billion by Microsoft and other hyperscalers. The programme targets nationwide ultra-fast broadband coverage by 2025 and the upskilling of 500,000 workers, creating long-term stimulus for the Spain ICT market.

EU-backed SME cloud-voucher scheme accelerates digital transformation

The Kit Digital initiative provides direct subsidies worth USD 3.37 billion to about 530,000 small businesses, covering cloud, cybersecurity and e-commerce solutions ^{[2]Red.es, “Kit Digital: Aceleración de la digitalización de las pymes,” red.es}. Vouchers of up to USD 31,900 per firm have already met 80% of the EU’s digital-intensity goals, lifting near-term cloud demand and embedding vendors for future contract renewals. Manufacturing and retail SMEs benefit most, sustaining double-digit growth in managed services and SaaS contracts.

5G and FTTH network densification creates ICT infrastructure advantage

Telefónica decommissioned 90% of its copper network by 2024 and will switch off the remainder by May 2025, pushing enterprises toward fibre-based upgrades. AWS cited Spain’s renewable-powered backbone when announcing a USD 17.27 billion data-centre cluster in Aragón, a project expected to support 17,500 annual jobs. Private 26 GHz spectrum allocations further enable factory and logistics operators to build dedicated 5G networks.

Spanish-language AI/LLM tool-chain expansion opens global markets

The launch of the Alia model in January 2025 positions Spain as a gateway for 500 million Spanish speakers. Developed with IBM and the Barcelona Supercomputing Center, the open-source stack supplies specialised models for finance, healthcare and public services. Spain’s 9.2% enterprise AI adoption rate already surpasses the European average, and the USD 660 million OpenEuroLLM programme deepens multilingual R&D capacity.

Shortage of advanced ICT workforce constrains market expansion

Spain currently lacks 30,000-50,000 specialists, and just 4.4% of the labour force works in ICT compared with 4.8% across the EU. Demand for 83,000 cybersecurity professionals by 2024 has inflated salaries, limiting SME hiring capacity. Only 17% of companies report that they have sufficient digital experts, forcing firms to recruit abroad or outsource, which slows implementation schedules and raises project costs.

High power prices pressure data-centre OPEX and cloud economics

Wholesale electricity averaged USD 110/MWh in 2024 and is expected to rise a further 13% in 2025. Although Spain’s renewable share should reach 42% in 2025, operators must still line up long-term power-purchase agreements to stabilise budgets. Capacity under construction will lift the country’s data-centre footprint to more than 600 MW by 2026, intensifying competition for grid connections and driving up cooling and distribution investments.

Segment Analysis

By Type: balanced shift from connectivity to protection

Communication services accounted for 40.20% of Spain ICT market share in 2024, underpinned by Telefónica’s nationwide 5G coverage and fibre reach. The segment benefits from post-merger efficiencies at MasOrange and from enterprise private-network roll-outs that monetise 26 GHz spectrum. IT security/cybersecurity posts the fastest 12.80% CAGR, as EUCS and NIS2 rules obligate companies to earmark 9% of IT budgets for hardening systems. IT infrastructure/data-centre demand grows on hyperscale builds that anchor local colocation ecosystems, while IT software sees traction from AI-enabled and Spanish-language applications. Steady hardware refresh cycles support peripheral segments; however, services that bundle consulting and managed security take the larger share of new contracts. A rising volume of sovereign-cloud and zero-trust projects cements cybersecurity’s strategic role, ensuring that Spain ICT market size for protection platforms outpaces connectivity growth.

Spain’s leadership in fibre reduces latency and lowers total cost of ownership, encouraging cloud-native application deployment across sectors. Revenue pressure on legacy communications pushes operators towards platform and API monetisation, while cyber vendors see double-digit growth in managed detection and response. Regulatory deadlines in 2026 funnel budgets to certified vendors, and Spain’s alignment with EU digital-identity frameworks widens demand for authentication solutions. Collaboration among telcos, security vendors and hyperscalers blurs traditional boundaries, creating integrated offers that address compliance, uptime and AI workload performance.

Note: Segment shares of all individual segments available upon report purchase

By End-user Enterprise Size: SME digital catch-up gains pace

Large enterprises generated 63.40% of 2024 spending thanks to multi-site infrastructure, regulated-industry mandates and complex hybrid-cloud estates. These organisations invest heavily in AI and zero-trust architectures, often embedding cybersecurity from design, which increases deal sizes. Spain ICT market size attached to SMEs is smaller but accelerates at a 9.80% CAGR, driven by Kit Digital vouchers and SaaS models that remove capital-expenditure barriers. Uptake is strongest in manufacturing and retail, where cloud point-of-sale, e-commerce and predictive maintenance platforms unlock productivity gains.

SMEs increasingly opt for “cloud-only” footprints and pay-as-you-grow models, reducing reliance on in-house talent and speeding time-to-market. Large firms, by contrast, stress data-residency compliance, prompting hybrid architectures that combine regional hyperscale zones with on-premise security modules. The Digital Nomad visa programme attracts developers who support both SME and start-up needs, feeding a self-reinforcing ecosystem of local ISVs. Spain’s target of 80% basic digital skills by 2030 should close capability gaps, creating a more even spending distribution between enterprise tiers.

By End-user Industry: public-sector digitisation sets the pace

BFSI retained 21.70% of Spain ICT market size in 2024 as banks shifted from multichannel to fully digital models, rolled out AI chatbots and implemented real-time fraud analytics. The sector’s compliance workload spans GDPR, DORA and NIS2, keeping cybersecurity and disaster-recovery budgets elevated. Government workloads rise at a 13.90% CAGR thanks to Digital Spain 2026 targets that mandate cloud migration for administrative services and proactive AI use in tax and healthcare. IT-telecom continues to modernise core networks, while manufacturing adopts IoT and edge analytics for Industry 4.0.

Retail and e-commerce expand omnichannel platforms, leveraging real-time inventory and AI-driven personalisation, while energy-utility operators digitalise smart-grid and DER management. Cross-sector collaboration emerges—for example, public cloud providers co-creating financial data platforms that also meet government sovereignty requirements. Spill-over effects mean that public-sector digital ID frameworks simplify commercial KYC processes, lowering onboarding costs for banks and fintechs.

Note: Segment shares of all individual segments available upon report purchase

By Deployment Mode: cloud entrenches, hybrid hedges risk

Cloud held 62.50% of Spain ICT market size in 2024 and grows at 10.20% to 2030 as AWS, Microsoft and Oracle bring new regional zones online powered by renewable energy. On-premise remains essential for critical workloads in defence, healthcare and banking, where low-latency and data-sovereignty stipulations persist. Hybrid architectures flourish, combining hyperscale agility with in-country data repositories certified under EUCS. Kit Digital specifically reimburses cloud migration costs for SMEs, accelerating first-time adoption.

Hyperscaler competition pushes prices down and injects advanced AI services that would be cost-prohibitive for local providers to develop independently. Edge-cloud extensions located at telecom sites address latency-sensitive industrial use cases, while sovereign-cloud blueprints secure workloads for agencies such as CECOES 112. Overall, cloud’s share of the Spain ICT market is poised to climb further as colocation operators add capacity, telecom operators shift to cloud-native cores and independent software vendors refactor legacy applications.

Geography Analysis

Madrid and Barcelona form the country’s primary technology corridor, housing more than 70% of ICT companies and the majority of hyperscaler availability zones. Madrid commands 61% of national data-centre capacity and benefits from proximity to regulatory bodies, financial institutions and a 5G population coverage that exceeds 95%. Barcelona complements this with a deep start-up scene of 140 foreign tech hubs that together contribute USD 2.75 billion in annual value and anchor global events such as Mobile World Congress ^{[3]Nucamp, “Barcelona Tech Hubs Overview,” nucamp.co}. Both cities attract venture capital and provide bilingual talent pools that serve European and Latin American markets alike.

Aragón has rapidly become a hyperscale hotspot after AWS committed USD 17.27 billion for its new cloud region. The investment is projected to add 17,500 direct and indirect jobs each year, transform local supply chains and stimulate further data-centre co-location projects. Renewable-energy abundance lowers operating costs, allowing the region to market itself as a low-carbon alternative to Frankfurt or Dublin. Microsoft’s complementary facilities and Oracle’s planned AI cluster are expected to reinforce Aragón’s position.

The Mediterranean arc encompassing Valencia, Murcia and Andalusia leverages logistics ports and export-oriented industries to spur ICT uptake in manufacturing and agro-food processing. Government grants under the UNICO rural broadband programme extend fibre beyond metro areas, narrowing digital divides. Canary and Balearic Islands adopt cloud and IoT solutions to optimise tourism operations, while Basque Country prioritises Industry 4.0 and cybersecurity specialisation. Growth therefore remains centred on Madrid-Barcelona but is becoming more geographically diversified as incentives and renewable assets redirect capital to emerging hubs.