Belgium Software Development Market - Forecast(2024 - 2030)

BELGIUM Software Development Market size is projected to reach EUR 5.53 billion by 2030, after growing at a CAGR of 3.42% during 2024-2030. Belgium has a thriving market. Belgium ranked 8th overall out of 28 countries in terms of digital economy development in 2022, according to the Digital Economy & Society Index (DESI), which ranks European Union member states on digital performance and competitiveness. The ranking takes into account digital public services, connectivity, digital technology integration, internet use, and human capital. Belgium's total ICT market size was estimated to be $14.4 billion in 2022, with approximately 70,000 people employed - 45,000 in hardware, services, and software; 15,000 in operations and maintenance; and 10,000 with telecom operators. Software and IT are rapidly expanding, and Belgium is among the top three European research countries in terms of R&D. There is significant increase in security services, eCommerce-related software solutions, teleworking solutions, and online videoconferencing services.

The report “BELGIUM Software Development Market– Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments in the BELGIUM Software Development market.

By language: JavaScript, Java, PHP, C++, SQL, Python, .NET, Android, iOS, Scala, Ruby, PERL, LISA, and Others

By Market Demand: In-House on Payroll, Hired from Secondment Providers, Hired Freelancers, and Fully Outsourced.

By Deployment Type: On-Premise, Cloud.

By Business Size: Small and Medium Business, Enterprise, and Government.

By End-use Industry:  Banking and Financial Institution, Insurance Firms, Media and Entertainment, Government, Defense, Telecommunication, Automotive, Consumer Goods and retail, Healthcare, Manufacturing, and Others.

Belgians have a strong political will to develop ICT, and they are pursuing a "Digital Belgium" Agenda, which includes plans for faster connectivity, next generation mobile data, and digital skills. Moreover, various cities are implementing Smart Cities development programmes, with Antwerp leading the way and serving as a "living lab" for other regions and European countries. Although the Belgian government has lagged in providing online public services in the past, it is now catching up and offers tax filings online. 

According to CompTIA’s IT Industry Outlook 2020, software development is the area where most companies in Belgium, the Netherlands and Luxembourg plan to place focus in this year, but there is also strong demand for cybersecurity, data and infrastructure—creating opportunity for solution providers. According to businesses selecting their top two priorities among the four IT pillars, 64% companies will be focusing on software development in 2020 followed by cybersecurity (47%), data (45%), and infrastructure (45%).

JavaScript held the largest share in the BELGIUM Software Development Market in 2023. ACLVB, C&C Computers and Communications, Tobania, Inetum, Unisystems, Cognizant, FUJITSU TECHNOLOGY SOLUTIONS, Realdolmen, S3M Consulting, and Cegeka are among the top companies in Belgium that hire Java Script developers. According to Salary Exposure, the average monthly salary for a Javascript Developer in Belgium is roughly € 6,040. Salaries range from € 2,780 to € 9,610 (lowest to highest) (highest). JavaScript developer jobs are in high demand in Belgium. In 2021, Glassdoor will have 1100 job openings with an average yearly salary of $41,824; Indeed, will have 1,200 job openings; and LinkedIn will have 1165 job openings. Javascript segment of Belgium Software Development Market generated a revenue of €564.5 million in 2021 and is projected to reach a revenue of €650.8 million by 2030, growing at a CAGR of 2.44% during 2024-2030.

In-House on Payroll held the largest share in the BELGIUM Software Development Market in 2021. Belgium, and particularly Brussels, has an excellent geographical location. They are bordered by several countries and markets and serve as an ideal gateway to the European market as well as a logistical hub. To these benefits, companies can add a highly qualified and multilingual workforce that is at the forefront of many industries, including IT, R&D, Software development and Engineering industry. Belgium is also an excellent test market due to its linguistic and cultural diversity. Brussels is the capital city, and it is home to a large number of software development firms. This city also has a large concentration of software developers. Belgium has many multilingual, skilled people and 30% of Belgian employees have a higher education qualification. They are also the 10th most productive labor force globally. In order to encourage hiring Belgians within the country, foreign companies are offered incentives such as exemption from paying social security contributions (SSCs) for first hired employee, SSC reductions for a 2 year period for a further 5 employees, qualifying younger and older employees. The Belgian Government reviews the National Minimum Wages bi-annually, and in 2021 it remained at €1,627 (US$1,925) per month or €19,508 (US$23,086) per year, based on 12 payments each year.

Cloud held the largest share in the BELGIUM Software Development Market in 2021. According to Statista, the cloud-services market is expected to generate $897.6 million in revenue in 2018. By 2021, the cloud-services industry is anticipated to be worth around $1,053.4 million USD. The sub-segments cloud-security, hosting, storage, and computing services are all included in this category. The number of Belgian businesses that use cloud solutions is growing. Whereas in 2016, an average of 55 % of Belgian businesses used one or more SaaS applications, that number has already increased to 64 %. The popularity of cloud technologies in Belgium has surged in recent years. Only 13% of Belgian firms employed one or more cloud solutions in 2010, increasing to 64% in 2018. This means that in the last eight years, there has been a 51 %age point gain. Cloud apps account for 17% of all solutions in Flanders. In the Brussels-Capital Region, cloud apps account for 13% of overall usage, whereas in Wallonia, cloud applications account for approximately 9% of total usage. Microsoft plans to invest more than €1 billion in Belgium in 2021 to establish a new cloud area that would better assist service providers, boost the country's GDP, and generate thousands of new jobs. Microsoft offers the ideal conditions for the digitization of the Belgian economy by investing in a data center zone in Belgium. Furthermore, in Belgium, the adoption of cloud computing varies widely from region to region. According to research conducted by Computer Profile in 2017, cloud penetration in the Flanders region was 64 percent, followed by 54 percent in the Brussels region. Finally, the Wallonia region has a penetration rate of barely 30%.

Small and Medium Business held the largest share in the BELGIUM Software Development Market in 2021. Hundreds of SMEs and multinational software development firms are active in the country's three major regions. The majority of software development firms are concentrated in the Brussels area. According to the most recent global survey, Belgium ranks sixth in terms of company growth potential, ahead of France, the United States, and many other European countries. In 2016, SMEs dominated the business enterprise landscape in Belgium, accounting for 99.85% of all firms and numbering around 1.16 million. SMEs in the country generate 63.3% of total value added and 68.8% of total employment according to EU factsheet of 2019. There are currently 15,000 Belgian shops online, a 26 % increase since 2015. Only 15% of these stores have an online revenue of $100,000 or more.  Furthermore, 3 % of online stores, including Amazon, 2dehands, and Office.com, account for 86 % of total revenue.

Banking and Financial Institution held the largest share in the BELGIUM Software Development Market in 2021. Fintech have transformed the way financial services are structured, delivered, and consumed, but many have yet to establish themselves as dominant players. Enterprise resource planning is one of the most widely used tools in a wide range of industries, including finance, insurance, banking, manufacturing, retail, sales, pharmaceuticals, and many others. The country's major industries are banking, financial services, insurance, and manufacturing. As a result, ERP platforms are in high demand in Belgium. Java, Dot.Net, MySQL, C, Python, PHP, and other major technologies are used in ERP development. Demand for e-commerce platform services is high, especially since the 2020 pandemic. However, the need to tailor offerings to local laws, culture, and in two languages (French and Dutch), combined with a small population, makes Belgium a slightly more difficult market for those entering the EU market through the e-commerce segment.

Belgium has a sophisticated and developed information and communication technology and software sector. Investors who establish a software company in Belgium benefit from a welcoming business environment as well as an advantageous location in the heart of Europe. In Belgium, the software industry is well-developed, and it is part of the large and well-represented Information and Communication Technology (ICT) sector. According to eZilon Europe, there are a few dozen large software businesses active in Belgium. The country is welcoming to both foreign and domestic investors, and it is this economic openness, combined with its excellent position in Europe, that attracts many foreign entrepreneurs in the software sector. Belgium's workforce is qualified and professional, including in the ICT sector. Many foreign entrepreneurs from neighbouring countries choose to work for Belgian firms. The Belgian software sector encompasses a wide range of areas, and companies in this field create software that is sold both internally, on the Belgian market, and externally. The majority of companies in this industry have their headquarters in Brussels; however, ICT and software clusters exist in all of the country's major areas, including the Brussels Capital Region, Flanders, and Wallonia.

Belgium’s total ICT market size in2023 was assessed at $14.4 billion, employing some 70,000 people - 45,000 in hardware, services, and software; 15,000 in operations and maintenance; and 10,000 with telecom operators. Online grocery shopping is the fastest growing market category, if not the largest, with a growth rate of 165 % since 2015. Delhaize, Colruyt, and Carrefour, the three major supermarket chains, launched their own platforms as a result of this, resulting in a boom in supermarket e-commerce. all rolling out their own platforms. Amazon Pantry was released in Belgium in March 2017. Toys are also popular in Belgium, with 29% of Belgians buying games online in 2016. On the other hand, there is the possibility of cross-border trade. In the Dutch-speaking northern portion of the country and the French-speaking southern part of the country, respectively, Dutch and French eCommerce platforms have had minimal success. For instance, Odoo is a rapidly growing all-in-one management platform that is supported by hundreds of applications, plugins, and modules. It is an open-source software platform created by a team based in Brussels, Belgium.

While the market is growing and more number of professionals are migrating to the country, Belgium's supply of ICT workers is still severely lacking and is being unable to meet demand. It produces a small number of STEM (Science, Technology, Engineering, and Mathematics) graduates. Shortages in these domains might be a major stumbling block to growth and innovation, with scarcities already appearing for specific services, such as qualified ICT experts like application developers. In 2015, 46.1 % of businesses with job openings requiring specific ICT skills had difficulty filling them. In 2017, more than half of STEM jobs remained unfilled for more than six months. This gap is expected to grow from roughly 8,000 people in 2012 to 30,000 by 2020 in the ICT workforce alone.

According to a 2020 OECD economic survey study, taxation is focused more towards labour income and this penalises growth and employment opportunities in the country. Belgium’s total tax and contribution rate is around 55.4% which is significantly higher than the average 39.9% in OECD countries. Out of this 55.4% tax rate, around 44% is dedicated towards labor tax and contributions. In addition, businesses may need to make 11 tax payments annually such as fuel tax, stamp duty, property tax, transport tax, municipal tax, provincial tax, regional tax, withholding tax, corporate income tax, VAT and social security contributions.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the BELGIUM Software Development market. In 2023, the BELGIUM Software Development Market share has been consolidated by the top ten players accounting for XX% of the share. Major players in the BELGIUM Software Development Market are SmartSmith Infotech, LIAS Solution, and others.