the ict industry in catalonia...connected to what matters 5. a major pool of local and international...

The ICT industry in Catalonia

March 2020

Sector Snapshot

The ICT industry in Catalonia | Sector Snapshot 2

The ICT industry in Catalonia: Sector Snapshot

ACCIÓGovernment of Catalonia

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AuthorACCIÓ Strategy and Competitive Intelligence Unit

CollaborationSecretariat of Digital Policies

Barcelona, March 2020

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1. Global ICT industry overview

2. The ICT industry in Catalonia

3. Opportunities in the ICT industry


1. Global ICT industry overview


Source: Annual Report of the The Networked Society (2019), by ONTSI (NationalObservatory of Telecommunications and Information Society) and European Commission.

3.8% growth

2018 2023Global ICT industry CAGR

o The Global ICT industryCompound Annual Growth Rate(CAGR) is expected to be 3.8%between 2018 and 2023.

Global ICT Turnover (2018)

$4,027 bn

The global ICT industry

Telecommunication Services

34%

Hardware25%

Software14%

IT Services18%

Business Services, 8%

Global ICT turnover, by segments (2017)

North America35%

Asia - Pacific29%

Europe24%

Latin America6%

Middle East and Africa, 6%

Global ICT turnover, by regions (2018)

o Telecommunication services arethe leading ICT segment, with 34%of the total turnover.

oNorth America ranks first inturnover, representing 35% of theglobal turnover.

The global ICT industry turnover was valued at $4,027 bn in 2018, growing 4.3% from 2017.

Finland, Sweden, the Netherlands and Denmark have the most advanced digital economies in the EU followed by UK, Luxembourg, Ireland and Estonia.


1. AN ECOSYSTEM SUPPORTING THE ICT INDUSTRY 4. CONNECTED TO WHAT MATTERS

2. A WORLD-CLASS INNOVATION SYSTEM 5. A MAJOR POOL OF LOCAL AND INTERNATIONAL TALENT

6. MWC & TECH INDUSTRY FAIRS

o Catalonia hosts many renownedinternational tech events.

oMWC, held in BCN, is the world’s main event of the mobile phone-related industries.

Leading location for technological FDI in Western Europe, being:

o Barcelona, the 4th most prepared city for the technological future (Index of Cities Readiness, 2017).

o 1st best tech city in the world that is not a capital (Tech Cities, Savills Index, 2019).

Catalonia is a European scientific and technological powerhouse thanks to:o +1,500 startups and 23% work on ICT.

o International and local companies choose to invest in R&D in Catalonia.

o Barcelona ranks highly in availability of scientific and engineering talent. There is a significant number of ICT andmobile-related studies in top universities.

o Barcelona-El Prat, 2nd Best airport in the world (50/60 Millions of passengers) (Skytrax World Airport Awards, 2019).

o Barcelona is the 5th city in the world with the best mobility connections.

o 256 routes connect Barcelona with more than 145 European Cities.

Top international ICT companies in Catalonia

o 5th in terms of job creation.

o 7th region in number of projects.

The Financial Times has recognized Catalonia as the best region to invest in southern Europe for the third consecutive time.

3. ON THE GLOBAL RADAR FOR TECH INVESTMENT

Catalonia’s industrial, tech based & digital economy makes it a top global tech hub



1. An ecosystem supporting the ICT industry

2. A world-class innovation system

3. On the global radar for technological

investment

4. Connected to what matters

5. A major pool of local and international

talent

6. MWC & tech industry fairs


ICT in Catalonia: key figures

16,339COMPANIES (2019)

114,300EMPLOYEES (4th quarter, 2019)

€18,325 M TURNOVER (2017)

oCatalonia holds a leading position within Spain (22.2%).

oThe number of ICT jobs represents 3.3% of total workers in Catalonia, higher than the Spanish average (2.8%).

oThe ICT sector turnover has grown 10% over the last year.

oThe number of ICT companies has grown constantly in Catalonia: 3.7% in 2019 and showing a 31.7% growth rate since 2013.

Source: EIC (DGI-ACCIÓ) and Secretariat of Digital Policies based on data from Idescat and INE


Leading ICT industry in Catalonia

Source: EIC (DGI – ACCIÓ)

As one of Europe’s leading ICT hubs, Catalonia offers everything the modern ICT firm could possibly need.

Software Vendors Hardware Vendors

E-commerce

Services & Consulting Telecommunications

Videogames

Advanced robotics

Simulation

Additive manufact.

Artificial inteligence

Simulation

Cloud

Big Data

IOT

Cybersecurity

Systems integration

Note: This is a partial representation of companies working in the ICT technology field.

http://www.epson.co.jp/e/index.htm

http://www.gft.de/corporate/es/start.html


ICT Clusters part of ACCIÓ Catalonia Clusters’ programme

ICT associations

Scientific Facilities & Technological Centers

Universities


Fairs & Congresses

TIC garraf

An ecosystem supporting Catalonia’s ICT industry

On launch

Other Clusters






investment



talent



Catalonia has the highest number of innovative companies in Spain (22%) (2017)

7.2% R&D expenditure (2017)

1.52% of GDP dedicated to R&D (2017)

60% of Catalan exports show high and medium high technological levels (2018)

Catalonia leads European patent applications in Spain (34%) (2018)

Research and innovation, a mark of Catalan business culture

Source: EIC (DGI-ACCIÓ)

HP has a significant

presence in Catalonia,

location of its worldwide 3D headquarters.

Roche uses Catalonia to

centralize the development of

information systems for labs

and software platforms for

Roche Diagnostics.

Volkswagenopened a global

innovation centre in Barcelona to offer

disruptive solutions

concerning mobility and smart

cities.

Nestlé installed its Global Digital

Hub in Barcelona to develop e-commerce

technologies.

Amazon, motivated by quality of life

and the university network, has

established its R&D centre focused on machine learning tech in Catalonia.

Hempel. the Danish company specialized in the development of paintings and

coatings, opened an R&D centre in

Catalonia.

(Innovation Cities Index, 2019)

Barcelona is the 4th most innovative

European cityWith 0.1% of the world’s population,Catalonia accounts for 1% of worldwidescientific production and 2.6% of EU-28scientific production (with 1.5% of EUpopulation)

Chemicals and plasticsLogistics Beauty

ICT and digital transformationAutomotive

Food and drinks

Catalonia is home to R&D centres for most of the world’s most cutting-edge companies

Barcelona, second European

city and fourth worldwide in R&D

investmentsKMPG's 2019


A European scientific and technological powerhouse

Technological centres with the TECNIO ICT related accreditation

Source: EIC (DGI – ACCIÓ) based on TECNIO. Technological centres websites.

Biomedical Research Park, Southern Europe leader in Biomedical research.

IDIADA automotive testing facility.

The Institute of Photonic Sciences, one of the finest research institutions in the world.

World-class scientific facilities

Prestigious applied and basic research groups supporting tech transfer and a complete network of scientific and tech centres represent the base for Catalonia’s research and innovation programme.

Other technological centres or entities related to the ICT industry in Catalonia

ALBA synchrotron,the largest particle accelerator in Southern Europe.

Mare Nostrum (BSC), 3rd Southern European Supercomputer.

The European Commission has decided that one of the three most powerful

supercomputers on the European continent will be situated in Barcelona

(2019)


3rd preferred hub by creators

of startups.Startup Heatmap Europe,

2019

1st startup hub in Southern

Europe.

EU-Startups, 2018

Barcelona is the 5th European

tech hub by volume of

investment.Dealroom, 2019

More than 1,500 startups are located in Catalonia 343 ICT & Telecom startups identified

Southern Europe’s top startup hub

Source: EIC (DGI - ACCIO) based on Barcelona&Catalonia Startup Hub, 2019

o 16,900 jobs related to Catalan startups.

o ICT is the technology attracting most investors (23%), followed by Big Data (16%) and Cloud Computing (13%) with

549 investments.

Note: This is a partial representation of the startups working in the ICT technology field.






investment



talent



Note: The investments made in the ICT sector (Software and IT Services, Communications, Businessmachines and equipment) and in technological activities in other sectors (ICT & InternetInfrastructure, R&D and Technical Support centre) have been considered technological investments.Source: EIC (DGI – ACCIÓ) based on fDi Markets, 2015 –2019

Technological FDI into Catalan industry (2015-2019)

241FDI projects

2,363.2Capex (M€)

13,537Jobs created

69.7% 2010-2014 38.2% 2010-2014 50.6% 2010-2014

200ICT sector

investments

41Technological investments

of other sectors

241Technological

projects

oThe top 5 countries by number of projects in Catalonia,have invested 70% of total projects and 76% of thecapex.

Top 15 investment source countries*

Top 20 companies carrying out technological FDI in Catalonia (2015-2019)o Between 2015 and 2019, Catalonia was the firsttechnological FDI destination in Spain.

o 43.3% of the FDI projects

o 33.6% of the capex.

o 43.2% of the jobs created.


Foreign investments in technological fields, 2019 ICT

Industry 4.0 and 3D printing Videogames

Finance and insurance

Digital Content Life sciences

Other sectors

Source: EIC (DGI – ACCIÓ)Note: The companies that are shown on this page are those who have made technological investmentsduring 2019, whether productive investments or acquisitions of companies in a particular sector. In thiscase, the logo of the company that acquires is placed within the sector of the acquired company.

E-commerce and distribution

1ST BEST TECH CITY IN THE WORLD THAT IS NOT A

CAPITAL Tech Cities, Savills Index, 2019

BARCELONA, THE 4TH MOST PREPARED CITY FOR THE TECHNOLOGICAL FUTURE

Index of Cities Readiness, 2017

Tourism and Leisure


There are 1,369 technological subsidiaries of foreign companies in Catalonia. This is an increase of 21% over the companies registered in 2018 (1,082). More than 50% of subsidiaries of technology companies in Catalonia come from 4 countries: USA (242), Germany (192), France (151) and the United Kingdom (149).

Half of the subsidiaries of technology companies in Catalonia are in the ICT and digital transformation sector, followed by electronics and electricity and digital and audiovisual content, with 19% and 16% respectively. 85% of companies are from these sectors

Foreign Technological Companies in Catalonia 2019(by countries of origin)

Foreign technological companies in Catalonia, 2019

ICT and digital transformation

50%

Electronics and electricity

19%

Digital and audiovisual

contents16%

Health and medical equipment

8%

R&D5%

Mobile & Gaming1% Biotechnology

1%

Foreign Technological Companies in Catalonia 2019(by sectors)

242

192

151 149

10182

60 5629 28

279

0

50

100

150

200

250

300

0%

5%

10%

15%

20%

25%

22.2%

17.6%

13.9%13.7%

9.3%7.5%

5.5% 5.1%2.7% 2.6%

20.4%

Source: Directory of Foreign Companies in Catalonia (2019) produced by EIC (DGI-ACCIÓ) from ORBIS. This analysis considers the subsidiaries of foreign companies belonging to the following sectors: electronics-electricity, ICT Industry 4.0, Biotechnology health and medical facilities, Smart cities, Digital and audiovisual content, Mobile and gaming, R&D.


Source: Catalonia Trade & Investment

“Barcelona has a large ecosystem of startups and international clients”

“The talent coming out of both universities and tech in and around

Barcelona is top-quality”

“Barcelona is a hotbed for international video game development and home to

the best talent the mobile industry has to offer”

“Barcelona has a rich conglomerate of multinationals, together with small, local

companies that make it a rich ecosystem”

“Barcelona offers a strategic location and a relevant technological hub”

“Barcelona gives us access to qualified resources, the ability to attract talent from all

over the world, a vibrant business activity and good infrastructures“ - Jürgen Bon

Hollen, Universal Robots president.

This German company is considered Europe’s largest industrial manufacturing company

A US company, developer and publisher of mobile games

A Danish manufacturer of industrial collaborative robot arms

A UK mobile game developer A Japanese video game development and publishing company

A Norwegian company leading online marketplaces in 16 countries

Leading business stakeholders share different reasons why they chose Catalonia to set up tech investment






investment



talent



A hub for international connections A strategic location plus its comprehensive network of infrastructures make Catalonia Europe’s southern gateway and the centre for distribution in the Mediterranean.

Barcelona is the 5th city in the world with the best

mobility connections

Tech Cities in Motion, 2019

256 routes connect Barcelona with more than 145 European Cities.Direct

flights to12 USA

cities

Source: AENA 2019 (Spanish Airports and Air Navigation), Skytrax World Airport Awards 2019, DGI - ACCIÓ

Number of direct destination airports from Barcelona

2nd Best airport in the world

(50/60 millions of passengers)

Skytrax World Airport Awards, 2019

Barcelona-El Prat, a world-class airportwith almost 90 airlines flying to 219destinations in 64 countries.

The top international ports of Barcelonaand Tarragona, connected with more than825 ports around the world.

Number of direct destination airports

from Barcelona






investment



talent



Huge number of ICT and mobile-related studies in top universities like UPC

Source: EIC (DGI – ACCIÓ) based on UPC – BarcelonaTech and Secretaria d’Universitats – Catalan University Department

Best pool of local and international talent

The Universitat Politècnica de Catalunya – BarcelonaTech is a public Higher Education and Research institution, specialised in Architecture, Engineering, Science and Technology.

IESE & ESADE:Among the Top 15 European Business Schools.Financial Times, 2019

UPC - Expertise

Big data and data analytics

5G Quantum sciences

Internet of things

Cybersecurity

o Catalonia, one of the world’s top spots to live and work. o Barcelona, a magnet for professionals and ranking highly in the availability of scientists and engineers.

Barcelona, Innovation and technology

22@, the district of the future in Barcelona. Innovation, creativity and

technology come together to advance in technological cities in Catalonia.

Other institutions offering ICT studies

Barcelona is the 2nd European City in number of ICT graduates.Cultural and CreativesCities Monitor 2017

The Catalan University System ranks 3rd in Europe. The Times, 2017

Barcelona, 5th best city in Europe.Resonance Consulting, 2019

Barcelona, 5thmost Attractive City for Digital ExpertsBoston Consulting Group, 2019






investment



talent



Mobile World Congress: the worldwide hub for the ICT industry sector


Thanks to the Mobile World Congress, Barcelona is the meeting point for theglobal digital revolution. MWC is the largest mobile event in the world,bringing together the latest innovations and leading-edge technology alongsidetoday’s most influential visionaries.

Barcelona has held the MWC every year since 2006 and will continue to host theworld's main event of the mobile phone-related industries until at least 2023.

Barcelona has developed a city value strategy around congresses and technological fairs, with the Mobile World Congress as its most visible point, in terms of dimension and global impact

ICT related Fairs & Congresses

Barcelona, the world’s 1st city in hosting international conferences and congresses in 2017.

ICCA 2018


3. Opportunities in the ICT industry


International opportunities for Catalan companies

AMERICA AFRICA EUROPE ASIA -PACIFIC

UNITED STATES

CHINA

HONG KONG

ISRAEL

SINGAPORE

TAIWAN

ÍNDIA

INDONESIA

ROMANIAFINLAND-SWEDEN

UNITED KINGDOM

FRANCEKENYA

SOUTH AFRICA

Public, private and multinational institutions havetheir innovation centres in Silicon Valley which actsas an engine generating disruptive innovation andinspiration for all those companies aiming tocapture the latest trends in technology andinnovation.

South Africa has 4 important banks that can bepotential customers of companies that sell similarproducts to European banks. New software,applications or technological products. In addition,most South African banks are present in mostcountries in sub-Saharan Africa.

The British government is committed to theconstruction industry using innovative technologiesand intelligent systems as sensors to regulate theconsumption of heating or light, remote controlsystems of devices and data collection.

With a digital penetration of 460 million Internetusers (636 million in 2021) and with a project toconnect all people with high-speed internet underthe Indian Digital Plan, India is undergoingsignificant changes at a very fast pace.

As the fintech sector expands, global financialinstitutions are setting up R&D centres andaccelerators in Israel. The main sub-sectors are:trade &investment, transactions, big data analytics,blockchain, regulatory technologies, risk compliance,e-commerce, anti-fraud and authentication, lending,insurance.

In 2018, investments in Southeast Asia in thefintech sector experienced a 30% growth over theprevious year, with forecasts going up to 72,000million USD in 2022. Investments in technology inthe area are considerable: up to 40% of the totalagreements.

The Government of Singapore aims to convert thecity-state into the digital capital of Asia. Google,Twitter and Netflix have their Asian headquarters inthe country. The government is also a strongbuyer, with more than 2,400 million in tenders ofICT infrastructures, data and digital services.

The "Asia Silicon Valley" Project uses the industrialadvantages of Taiwan's ICT to promote industrialtransformation, upgrade the IoT industry, create R&amp, D-based innovation and connect with globaltechnology. This objective includes thedevelopment of IOT services and applications.

The Hong Kong Government is committed topromoting this sector by facilitating access tofacilities and resources to local companies or tonew arrivals into the territory with tax incentivesystems, public projects, and coordinatedprogrammes by StartmeupHK.

China is developing technologies that allow tocover large rural area both economically andspeedily. In addition, it also seeks technologiesrelated to: IOT, cloud computing, Big Data, e-commerce and Internet and computer security.

The IT sector in Romania joins others registering ahigher growth in central and Eastern Europeanmarkets. The software market in IT Services haspotential to become one of the engines of theeconomy in the coming years.

The IOC designated Paris as the organising city forthe 2024 Olympic Games. This implies significantinvestments regarding construction works but alsofor technology companies. Of the total budget of3,200 million, 50M€ will be allocated to a supportfund for ecologically connected innovation.

This Nordic region is one of the world's mostdigitized regions. All countries set up an action planthat aims to favour the development of new 5Ginstallations, eliminate obstacles to networkexpansion and promote the development of 5G indifferent sectors.

With the adoption of technology and the creation ofa favourable environment for tech startups, Kenyahas become one of the continent's most innovativecountries. Nairobi is also known as the SiliconSavannah for its breakthroughs in digital finance,business incubators and applications

Source: Global trade mapping, 2019 by EIC (DGI – ACCIÓ)


Technological and business opportunities in Catalonia

3D printingCatalonia claims its space among the world's leading 3D printing hubs along United States, Europe or Japan.

Big data & Data AnalyticsCatalonia as one of the main hubs of activity in Europe. Talent, R&D centres and an innovative ecosystem.

1. INDUSTRY 4.0The Catalan perfect mix: Industrial ecosystem (21% of GVA) + Technology

AI & Machine LearningPowerful research environment with infrastructures such as the Barcelona Supercomputing Centre.

RoboticsTop robotics producers and research centres are in Catalonia making the place a global benchmark.

E-commerceConnectivity, efficient logistics and talent become one in Catalonia.

SimulatorsTop global suppliers for simulation software companies have headquarters in Catalonia.

CloudCatalonia is a pioneer in the use of digital imaging in the cloud for the management of medical information.

In Catalonia there are 251 Internet of Things companies opening the door to the 4th industrial revolution.

IoT CybersecurityIn Catalonia there are 356 companies with 6,000 workers and turnover of €810 M.

Systems Integration The implementation of Industry 4.0 programmes will create opportunities for the development of systems integration

Augmented RealityCatalan companies develop VR applications with high impact for development, health and social fields.

Life sciences5 out of 5 top Spanish pharma companies are Catalan.

GreentechCatalonia is committed to the SDG and enhancing green technologies.

4. SECTORS WITH HIGH TECHNOLOGICAL INTENSITY

2. KEY ENABLING TECHNOLOGIES

5GCatalonia becomes the first open 5G laboratory in Europe.

BlockchainA growing technological ecosystem in Catalonia, doubling its size in one year

Quantum sciencesICFO, a world reference for quantum, is working on many quantum technologies fields.

Optimal infrastructure for vehicle testing, automated driving tests in real environment.

Electric Vehicle

Connected & Autonomous vehicle

3. MOBILITY OF THE FUTURE

DronesCatalonia hosts 1 of the only 10 drone airports in the world. Catalonia is becoming a worldwide reference.

A robust automotive industry, specialized research centers and public initiatives make Catalonia the best location for electric mobility.

Mobility as a ServiceBarcelona leads the European initiative ‘Mobility for Liveable Urban Spaces’ in Spain.

Smart CitiesBarcelona, 2nd Smart City in the world, after Singapore. (Juniper Research, 2016).

Specialized engineers, graphic designers and creative environment.

Silver economyThe silver economy in Catalonia can benefit from new technological advances.

Videogames

Companies located in Catalonia such as Celestia Aerospace, Satellogic and Aistech have a worldwide presence in this sector.

New Space

Souce: EIC (DGI-ACCIÓ). More info

https://www.accio.gencat.cat/ca/serveis/banc-coneixement/cercador/?q=&cat_tipus=f3971cf3-d94f-11e7-9472-005056924a59&cat_tipus=fa0d5188-d94f-11e7-9472-005056924a59

Passeig de Gràcia, 12908008 Barcelonawww.accio.gencat.catwww.catalonia.com@accio_cat@catalonia_ti

Take a look at the full report:http://catalonia.com/.content/documents/ict-in-catalonia.pdf

Further information about the sector and opportunities:http://catalonia.com/trade-with-catalonia/ict-mobile.jsp

the ict industry in catalonia...connected to what matters 5. a major pool of local and international...

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