Finland Software Development Market - Forecast(2024 - 2030)

Finland Software Development Market size is valued at US $5.52 billion in 2023 and is expected to reach a value of US $7.51 billion by 2030 at a CAGR of 4.6% during the forecast period 2024-2030.  The process of creating computer programs is called software development. The procedure, commonly referred to as the Software Development Life Cycle (SDLC), consists of several stages that offer a way to create products that adhere to technical specifications and customer demands. According to a survey by Teknologiateollisuus, the operation of the technology businesses accounts for more than 50% of all Finnish exports, making the technology sector one of Finland's key export industries. The expansion of Finland's software development sector is predicted to be fueled by rising expenditure on research and development in this industry. The Finnish government has launched numerous measures in recent years to position the country as a pioneer in the data-driven economy. The Sustainable Growth Program for Finland, which aims to create a competitive operating environment for businesses and transform Finland into a world-class producer of data-driven services for digital societies, together with secure solutions for these services, published Finland's preliminary Recovery and Resilience Plan on March 15, 2021. The Ministry also established collaboration groups on operational architecture, information security and strategic goals for information management in the fall of 2020. The Finnish government reaffirmed its commitment to fostering digital transformation in December 2020 when it signed the Berlin Declaration on Digital Society and Value-Based Digital Government with the other EU Member States. This would enable citizens and businesses to take advantage of the benefits and opportunities provided by contemporary digital technologies. Factors like these are analyzed to propel the growth of the underlying segment.

The report: “Finland Software Development Market – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments of the Finland Software Development market. 

By Language: Java, Javascript, Python, C++, C#, Ruby, LISA, PHP, SQL, Android, IOS and others.

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

By Deployment Type: On-Premise and Cloud.

By Business Size: Small and Medium Business, Enterprises 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, Gaming, Energy & Utilities, Travel & Logistics, Fintech, eCommerce and others.

• Java held the highest share in 2021 due to the growing popularity of the language, as it provides a reliable platform for designing, building and prototyping services and applications.

• The cloud segment accounts for the dominant market share during the forecast period owing to the onset of COVID-19 and the shift of consumers from on-premise to cloud.

• Finland is one of the leading regions that have a strong base on Artificial Intelligence. The increasing adoption of AI in various sectors is set to propel the demand for software development in the region.

Due to the language's rising recognition as a solid foundation for prototyping and constructing services and applications, Java had the largest market share in 2021. The region's expanding gaming development investments also play a major role in the market's expansion. Neogames reported that in 2019–2020, investments totaling more than €100 million were made in Finnish game development companies. The increase in pay that comes with earning degrees also helps the underlying market. According to the Salaryexplorer data, Java developers working freelance or for a company in the region, who have a Bachelor's degree, make 50% more money than those with a diploma or a certificate. However, the Python segment is analyzed to witness a steady growth rate due to the increasing government initiatives towards the adoption of AI and Data analytics. A report from IndiaAI claims that Finland launched the 1% AI Scheme in January 2019. Under this program, the government began by teaching 55,000 people or 1% of the population the fundamentals of AI. Over the following few years, the government would steadily increase the number of students. Numerous organizations in the area, such as the Python Finland Association, Knowledgehut and others, offer python certification in the area and support learning the language's principles and its libraries, such as SciPy and Matplotlib.

By deployment type, the cloud segment accounts for the dominant market share during the forecast period owing to the onset of COVID-19 and the shift of consumers from on-premise to cloud. Finland is one of the main centers for cloud computing. The recent COVID-19 pandemic is further accelerating the growth of the underlying market segment, as is the rising penetration of cloud services across numerous industry verticals. Finland uses cloud services the most in Europe, according to the PrivacyShield Framework, followed by other Nordic nations. According to the survey, Finnish businesses are accustomed to purchasing services from third parties and there aren't many substantial hurdles to using third-party services. This is why development in cloud services has been particularly high in the previous five years. Furthermore, the PrivacyShield Framework claims that the market segment is expanding due to the rapid development of private infrastructure as a service (IaaS) and awareness of platform as a service (PaaS), both of which are integrated with cloud development. However, it is also predicted that the on-premise category would expand at a faster rate due to the increasing automation and adoption of AI across a range of end-user industries. Some of the most important on-premise software, created for varied corporate needs, include the Microsoft Office package, Adobe Creative Suite and SAP. These are also fantastic substitutes for contemporary SaaS for businesses.