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Finland’s ICT Sector in 2025: Growth, Challenges, and Opportunities

12.2.2025

The Kasvuyrittispulssi report by Tesi Oy tracks the sentiment and performance of Finnish SMEs, offering Insights into finance, investment, workforce, and sustainability. It serves as a key resource for policymakers and investors to understand business trends. This edition focuses on the ICT sector, analyzing its current state and future direction.

Strong Demand and Growth in ICT

The ICT sector is leading the way when it comes to order backlog growth, which refers to the total value of customer orders that have been received but not yet fulfilled. Unlike some traditional industries struggling to keep up, ICT companies are expecting solid revenue growth of 7% in 2025, fueled by digital transformation across multiple sectors. We can infer that demand for digital solutions and services isn’t slowing down.

Global Ambitions and Expansion

Finland’s ICT businesses aren’t just thinking local; 73% are already operating internationally or planning to expand abroad. This makes ICT one of the most globalized sectors among Finnish SMEs, with larger firms taking the lead in entering new markets.

Investments and R&D Paving the Way Forward

Investment in the ICT sector is booming, with companies putting a significant chunk of their revenue into research and development. The key areas of focus include:

  • AI and Automation: A third of ICT firms are currently using AI as a competitive advantage and are actively integrating it into their operations.
  • R&D Commitment: While slightly less than 2023, 67% of ICT companies engaged in active research and development in 2024, the highest among all sectors.

Profitability and Financial Stability

Strong financial performance is a crucial indicator of Sustainability in the ICT sector:

  • The ICT sector has one of the strongest EBITDA margins, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, a key indicator of a company’s financial performance.
  • Profitability of the ICT sector is expected to increase in 2025. This makes the sector attractive for further investment and expansion.

Addressing Workforce Challenges

The ICT sector faces a growing demand for skilled professionals. To meet this demand:

  • 43% of ICT firms plan to hire internationally to fill skill gaps.
  • 94% of this demand is in expert and managerial roles.

Sustainability and Green Tech Initiatives

Green transition is still a challenge; however, the ICT sector is perceiving fewer barriers:

  • 56% of the ICT companies see no challenges in green transition, more than any other sector.
  • The main challenge in the ICT sector in this regard is perceived as difficulties in choosing appropriate measures for the company.
  • Tracking carbon footprints: Awareness of Scope 1-3 emissions is still a challenge.

Conclusion

The Kasvuyrittispulssi report paints a picture of a thriving Finnish ICT sector, poised for continued growth and international expansion. Driven by strong demand, significant R&D investment, particularly in AI and automation, and robust profitability, the sector is well-positioned for future success. While workforce challenges, especially the need for skilled professionals, and navigating the complexities of the green transition, particularly measuring and reducing carbon footprints, remain areas to address, the ICT sector demonstrates resilience and a proactive approach to these issues. Its global ambitions, coupled with its commitment to innovation and sustainability, solidify its position as a key driver of the Finnish economy.

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