Norway Software Development Market Overview
The market for Norway Software Development is analysed to be USD 3.51 billion in 2023 and is projected to grow at a CAGR of 4.2% during forecast period 2024-2030. The Nordic nations, which are among the best for business include Sweden, Norway, Denmark, and Finland, have recently seen a sizable influx of venture capital. As more investments drive the growth of the business, the shortage of software developers has gotten worse. Additionally, the market growth in the region is expected to be boost by the existence of significant organisations supporting the country's digitalization. For instance, the goal of the non-profit organisation DigitalNorway is to facilitate the success of digitalization for Norwegian enterprises. Cooperation between DigitalNorway with some of Norway's top research, educational, commercial clusters, and innovation communities. The organisation offers networks for knowledge and experience sharing, tools for businesses looking to make the leap from concept to product or service, among other things. A national artificial intelligence policy was unveiled by the Norwegian government in September 2020. Machine learning and other algorithm-related aspects of artificial intelligence have great potential. Productivity, wellbeing, transparency, knowledge, and competitive advantage may all be improved.
Report Coverage
The report: “Norway Software Development Market – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments in the Norway Software Development market.
By Language: PHP, Microsoft ASP.NET, Lua, Java, Python, SQL, Android, IOS, Javascript, C++, Scala, Perl, Ruby, LISA 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, Energy & Utilities, Travel & Logistics, Fintech, eCommerce and others.
Key Takeaways
• The Java segment is analysed to hold highest share in 2023 owing to the presence of major enterprises offering java developer jobs including Frosta, Signicat, Sportradar and Nets among others.
• The in-house on payroll accounts for the dominant market share during the forecast period owing to the growing trend towards development of software in house owing to the availability of skilled developers.
• The banking and financial sector in the region is one of the core sectors of the Norwegian economy and the growth in online banking activity in the region is set to drive the growth of the underlying market.
Norway Software Development Market Segmentation Analysis – By Language
In terms of language, the Java segment is analysed to hold highest share in 2023 owing to the presence of major enterprises offering java developer jobs including Frosta, Signicat, Sportradar and Nets among others. Moreover, according to a recent study, Java dominates the Oslo region and the eastern section of the country. C#.NET is popular on the West Coast. Apart from the big two, there are several programming languages. Every web development firm, and many of them, use JavaScript. C++ remains dominant in fields of software engineering other than web development. Python, for example, is mostly used in data research and not so much in web development in Norway. Scala is also becoming more popular. Furthermore, Objective-C and Swift is used in the creation of mobile apps. Apart from this, the growth in the gaming industry in the region, is set to propel the demand for the Java Language in coming years. For instance, according to a report by the NordNews, the turnover for the gaming industry in Norway increased by 22% between 2019 and 2020. However, the javascript segment is also analysed to grow at a higher rate, since it is one of the most popular language in the region, and the popularity, simplicity and interoperability of the language makes it a favourable choice among software developers.
Norway Software Development Market Segmentation Analysis - By Market Demand
By Market Demand, the in-house on payroll accounts for the dominant market share during the forecast period owing to the growing trend towards development of software in house owing to the availability of skilled developers. Moreover, in Norway, for on-payroll employees, the Working Environment Act provides provisions about employers’ and employees’ obligations with respect to ensuring an acceptable working environment. Additionally, the Working Environment Act provides a framework for a minimum overtime supplement of 40% in addition to ordinary pay for work in excess of the Act’s definition of normal working hours. Additionally, according to a report by OECD, in Norway, the average tax rate of on payroll employees stood at 27.5% in 2020, compared with the OECD average of 24.8%. However, the fully outsourced segment is also analysed to grow at a higher rate during the forecast period. The region is one of the major IT hubs in the region, and the availability of skilled personnel in the region is set to boost the demand for the underlying segment. Apart from this, Norway is shifting away from oil and towards a clean economy, world-class, tech-savvy talent is freed up and moving into areas where they may find meaningful work. For instance, according to the EY Norwegian IT Outsourcing Survey 2019, it is stated that approximately 30% of the business in EU have outsourced less than 1/5th of their IT services, thereby indicating a potential for more IT Outsourcing in Norwegian marketplace.
Norway Software
Development Market Drivers
·
High digital penetration among the
Norwegian population and digitalization of public administration
The Norwegian
people are some of the early adopters of various technological advancements,
thereby leading to a high number of internet users in the region. For instance,
according to the World Bank data, 97% of the population in Norway population
used the internet in 2020. Such high-rate paves way for various digital and
online services, thereby driving the demand for the underlying market. Additionally, the growing adoption of
digital solutions in the public administration is set to further aid the growth
of the underlying market. For instance, in February 2021, the Ministry of Local
Government and Modernization announced a new strategy for electronic
identification (eID) of its citizens, that is set to serve as a national
identification number. Additionally, the Digital Procurement
Program, which is set to last until 2024, provides a framework to streamline
and improve public procurement by fully digitalizing the procurement process.
Development like these are driving the growth of the Norway Software
Development Market.
·
The
growth in online banking solutions is set to drive the growth of the underlying
segment
The banking and
financial sector in the region is one of the core sectors of the Norwegian
economy and the growth in online banking activity in the region is set to drive
the growth of the underlying market. According to the 2020 Digital Economy and
Society Index, in Norway 97% of the population use the internet for online
banking, which is 31% higher than the EU average. The number is set to increase
steadily in coming years owing to the growing demand for online banking
solutions in the region. The increase in digital banking solutions have aided in the significant
reduction in costs and increase in efficiency and productivity gains. According
to the 2020 report by Cook the cost/income ratio of the banking and financial
sector in the region stood at 44%. Additionally, the presence of major banking and financial institutions
in the region including Danske Bank, Nordea and DNB among others are set to aid
the growth of the market. Developments like these are some of the major factors
that are driving the growth of the Norway Software Development market.
Norway Software Development Market Challenges
·
Talent
Shortage Issues
In the recent years, Norway is facing a major shortage of skilled IT
professionals, that is set to be a major challenge for the underlying market.
For instance, according to a report by DAXX, around 30% of companies in the
region stated of facing a shortage of IT expertise. Additionally, the report
also states that by 2030, Norway could face a shortfall of more than 4,000
experts in IT security vertical. The
Norwegian Confederation of Enterprise (NHO) mentions that 6 out of 10 companies’
part of the confederation lack workers with relevant competence. Overall,
around 250 professions lack workers with relevant skills with the technician
profession which includes software developers facing the 3rd largest
shortage in the country.
Norway Software
Development Market Competitive Landscape
Product launches,
acquisitions, market penetration and R&D activities are key strategies
adopted by players in the Norway Software Development market. The top 10 Norway
Software Development market companies are
·
Elastx
·
Atea
·
Basefarm
·
Itera ASA
·
HCL
·
IBM
·
Cognizant
·
Accenture
·
Capgemini
·
TCS
Recent Developments
·
In March 2022, in order to successfully change its finance and supply
chain operations, Telenor Norway, Telenor's wholly owned Norwegian telecoms
operator, collaborated with Infosys, a global leader in next-generation digital
services and consulting.
·
In August 2020, according to a report from NEC Corporation, Banqsoft, a subsidiary of
KMD, a NEC subsidiary with headquarters in Denmark that specializes in software
for the financial services industry, has agreed to buy Norwegian software
startup Concent.
·
In June 2021, Cloudeon opened
an office in Norway and Sweden.