A Dynamic Engine of Innovation and Digital Transformation
Portugal's Information, Communication and Electronics Technologies (ICTE) sector has become one of the country's strongest engines of innovation, digital transformation and economic growth. Supported by a competitive business environment and strong integration into international value chains, the sector is positioning Portugal as one of Europe's leading destinations for technology investment, digital services and innovation.
Over the past decade, the Portuguese ICT sector has experienced sustained expansion, becoming one of the country's most dynamic economic sectors. Portuguese companies increasingly develop technologies for global markets, while multinational corporations continue to expand research, engineering, innovation and shared services operations across the country.
The sector's international orientation is particularly noteworthy: 73% of Portuguese technology companies export their services, reflecting the ecosystem's maturity, competitiveness, and international reach.
Today, Portugal’s ICT sector is a dynamic and increasingly internationalised part of the economy, making a growing contribution to exports and value creation. Its strong international reach reinforces Portugal’s position as an attractive destination for technology investment and a partner in global digital value chains.
According to the Portugal ICT Study 2026–2030, developed by the German Outsourcing Association (Deutscher Outsourcing Verband e.V.) in partnership with 99x, the ICT sector already represents around 10% of Portugal's GDP and is expected to continue its strong growth, driven by increasing international demand for digital services and Portugal's growing role as a nearshore technology hub.
Key sector indicators
- 32,300 companies
- 204,400 employees
- €30.7 billion turnover
- €13.4 billion gross value added
- €6.5 billion in ICT services exports
- More than 85% of employees with higher education qualifications
These figures reflect a sector that combines technical excellence, innovation capacity, and strong international competitiveness.
A highly qualified ICT workforce
Portugal's ICT ecosystem is supported by more than 200,000 ICT professionals. Each year, Portuguese higher education institutions produce around 28,000 STEM graduates, ensuring a continuous pipeline of talent for software engineering, artificial intelligence, cloud computing, cybersecurity, data science and other emerging digital technologies.
This strong talent base continues to attract multinational companies establishing development centres, innovation hubs and shared services operations in Portugal.
A thriving innovation ecosystem
Portugal has built one of Europe's most vibrant technology ecosystems.
The country is home to:
- More than 5,000 startups
- More than 130 incubators and accelerators
- A growing number of internationally successful scale-ups
International success stories such as Feedzai, OutSystems, Remote and Sword Health demonstrate Portugal's capacity to create globally competitive technology companies. At the same time, new ventures continue to emerge across artificial intelligence, fintech, cybersecurity, digital health, smart systems and advanced analytics.
Lisbon's role as host of the Web Summit until 2028 has further strengthened Portugal's international visibility as a gateway for technology companies expanding across Europe, the Americas and Africa.
A preferred nearshore destination for Europe
Portugal has become one of Europe's leading nearshore destinations for digital services.
Its combination of technical expertise, multilingual capabilities, cultural proximity, competitive operating conditions and full regulatory alignment with the European Union makes the country an attractive partner for organisations seeking long-term technology and digital transformation projects.
Germany is currently the largest international market for Portuguese ICT services, followed by the United Kingdom and France, reflecting growing confidence in Portugal's ability to deliver high-value technology solutions.
A digital pioneer in Europe
Portugal has made digital transformation a national priority, investing consistently in digital public services, connectivity and business digitalisation.
This commitment is reflected in some of Europe's strongest digital performance indicators:
- #3 worldwide in the OECD Digital Government Index, with a score of 86%
- #3 in the EU for Fibre-to-the-Premises (FTTP) coverage
- #4 in the EU for fast fixed broadband uptake (≥100 Mbps)
- 97.1% Very High-Capacity Network coverage
- 63.9% of SMEs are achieving at least a basic level of digital intensity
Source: European Commission – State of the Digital Decade 2026.
These indicators provide companies with an outstanding platform to develop, test and scale next-generation digital services.
Leadership in cybersecurity and connectivity
Portugal combines an advanced telecommunications infrastructure with one of the world's strongest cybersecurity environments.
The country ranks
- #4 worldwide in the Global Cybersecurity Index 2024
- #8 globally for communications technology (IMD World Digital Competitiveness Ranking)
- Among Europe's leading countries for fibre connectivity and advanced broadband coverage
Nationwide 5G deployment, extensive fibre networks and robust cybersecurity capabilities create ideal conditions for technology-intensive investment and digital operations.
Technology supporting sustainability
Portugal's digital transition is reinforced by a strong commitment to sustainability.
With more than 75% of electricity generation coming from renewable sources, the country offers favourable conditions for sustainable digital infrastructure, cloud services, data centres and technology-intensive operations, supporting organisations seeking to combine digital innovation with environmental responsibility.
Digital Health
Portugal has developed one of Europe's most dynamic digital health ecosystems, bringing together healthcare providers, research institutions, universities and technology companies to accelerate innovation across the health sector.
Portuguese companies are developing advanced solutions in telemedicine, artificial intelligence, health data, electronic health records and digital health platforms, contributing to the digital transformation of healthcare.
Portugal's performance is recognised in the Digital Decade 2025: EU Digital Health Indicators Study, where the country ranks 10th in the European Union and achieves a score of 92% for health data access, significantly above the EU average of 79%.
Key strengths
- #10 in the Digital Decade 2025: EU Digital Health Indicators Study
- 92% score in health data access (EU average: 79%)
- Strong collaboration between healthcare providers, research institutions and technology companies
- Dynamic ecosystem of innovative digital health companies
Smart cities and connected territories
Portuguese municipalities are increasingly adopting digital technologies to improve urban management and public services.
Applications include:
- Intelligent traffic management
- Urban data platforms
- Smart energy systems
- Real-time environmental monitoring
- Digital public services
- Connected mobility solutions
These initiatives transform Portuguese cities into living laboratories where innovative technologies can be developed, tested and scaled internationally.
From Fintech to Smart Mobility
Portugal's technological capabilities extend across multiple high-growth industries.
Its fintech ecosystem has attracted more than €1.1 billion in cumulative investment and hosts major international players including BNP Paribas, Natixis, Mastercard, Revolut, Euronext and Nasdaq.
In smart mobility, Portugal became the first country in the world to deploy a fully interoperable national electric vehicle charging network and today hosts a growing ecosystem of engineering centres, manufacturers and mobility technology companies developing solutions for connected and zero-emission transport.
Other fast-growing areas include BlueTech, HealthTech, biotechnology and advanced digital systems.
