The Government of Guatemala launched the Digital Government Plan 2021–2026 to drive digital transformation with the objectives of improving efficiency, transparency, and citizen participation. Implementation has progressed unevenly: while there have been notable advances in the digitalization of public services, infrastructure gaps remain a major constraint. In parallel, the Guatemalan Congress established the Parliamentary Forum on Digital Transformation in March 2024 to promote a legislative digital agenda aimed at updating or creating regulations aligned with global technological advancements and public participation. The Forum has continued reviewing bills to modernize digital governance and received feedback from the Perry Institute to enrich the discussion regarding cybersecurity legislation and critical infrastructure protection, which are considered urgent given the rise in cyberattacks.

Guatemala’s e-commerce and digital economy sectors are experiencing significant growth. According to the UN Trade and Development organization (UNCTAD), the country has seen a steady increase in e-commerce adoption, digital payment systems, and investment in technology infrastructure. By the end of 2025, e-commerce revenues are projected to reach USD 43M, with an annual growth rate of 8.7% through 2029 (ECDB). Digital payments are expected to reach USD 12.7B in 2025, with mobile point-of-sale transactions forecast at USD 6.34B.

Key trends include:

• Growth in Fintech: Even though Guatemala has one of the lowest bank penetration rates in Latin America, consumers are increasingly embracing online financial services which is resulting in an increase in digital banking and in the use of other payment platforms. Currently there are only two companies who offer POS services: NeoNet (Visa) and BAC (Visa, Master Card, AMEX).
• E-Commerce Expansion: Rising online shopping, driven by improvements in internet penetration and digital payment solutions.
• Government Digitalization: The executive and judicial branches are working on initiatives to enhance public service delivery through digital platforms.
• Infrastructure Development: There are investment plans to expand internet access, especially in rural areas, to boost overall digital inclusion. In 2025, there are 11.3 million internet users in Guatemala and internet penetration stood at 60.8%.
• Cybersecurity Focus: There are a growing awareness and effort to enhance cybersecurity across sectors. Revenue in the cybersecurity market is projected to reach USD 72.1M in 2025. Cybersecurity is becoming increasingly important, as companies, governments, and individuals continue to be more reliant on IT systems, which are vulnerable to malicious actions. Many key U.S. cybersecurity companies are already active in the country with others having expressed interest in entering.

The competitive environment is dominated by TIGO and CLARO, the two leading telecom providers, which are the primary drivers of internet and mobile service expansion. Local banks such as Banco Industrial and BAC Credomatic are advancing digital banking, contributing to growth in fintech despite Guatemala’s comparatively low banking penetration rate. However, it is still necessary to highlight the need for continued investment in infrastructure and digital literacy.

The major players in Guatemala’s digital economy include: 

• TIGO Guatemala: A leading telecommunications company offering mobile and internet services.
• CLARO Guatemala: Another key telecom provider, competing closely with TIGO in mobile and broadband services.
• Guatecompras: The government’s e-procurement platform which plays a crucial role in digitalizing public services, and is undergoing a process of improvement, with the support of the U.S. Department of Commerce’s Commercial Law Development Program (CLDP) which is working with the Minister of Finance on incorporating international best practices into the reform of the laws regarding government procurement and public-private partnerships.

Market Challenges

While opportunities exist, substantial challenges continue to constrain the development of Guatemala’s digital economy.

• Regulatory Environment: Guatemala’s regulatory framework remains underdeveloped and fragmented, with outdated laws, slow policy-making, and uneven subnational implementation creating uncertainty for businesses and investors. The country lacks legislation addressing the digital economy’s needs, including addressing cybercrime and has yet to sign onto the Budapest Convention, although this is under consideration in the Guatemalan Congress.  In August 2025, the Parliamentary Forum on Digital Transformation presented a new Cybersecurity Law (Bill 6347) which seeks to define new cybercrimes and enhance legal frameworks for dealing with cyber-attacks.
• Data Privacy: Guatemala lacks a comprehensive personal data protection law. While the Law on Access to Public Information (Decree 57-2008) includes some applicable provisions, the absence of clear regulations exposes consumers and businesses to risk, undermines trust in digital services, and limits Guatemala’s ability to engage in international data flows.
• AI Regulation: There is no regulatory body or specific legislation governing artificial intelligence in Guatemala, raising ethical, legal, and operational concerns.
• Cross-Border Data Flows: Weak data protection standards and lack of harmonization with international frameworks hinder cross-border data transfers. Guatemala does not meet requirements for joining global systems like the Cross-Border Privacy Rules (CBPR), which require a comprehensive data protection law and authority.
• Cybersecurity: Guatemala lacks a national cybersecurity framework, leaving businesses—especially small and medium sized enterprises (SMEs)—vulnerable to cyberattacks. In the first half of 2025 alone, the country faced over 214 million attempted cyberattacks (Fortinet 2025 Global Threat Report).
• Online Harms Regulation: The legal framework does not adequately address cyberbullying, hate speech, or misinformation. If left unaddressed, this regulatory gap may erode consumer trust and impede the creation of a safe digital environment.
• Standards Development: Guatemala lacks a national body for digital standards, resulting in fragmented adoption across sectors. A proposed cybersecurity law includes plans to establish an Interagency Technical Response Center to improve coordination.
• Subnational Market Regulation: Guatemala’s digital economy is also affected by the lack of uniformity in subnational market regulations. Varying digital regulations across regions create complexity for businesses, limiting scalability and market entry, and contributing to a fragmented digital ecosystem.
• Market Entry: Market entry is a significant challenge for digital businesses in Guatemala. The country’s complex regulatory environment, high compliance costs, and limited support for startups and SMEs create barriers for local and foreign market entrants, stifling innovation and competition.
• Public Sector Procurement: While a key driver of the digital economy, opaque and inefficient public procurement processes limit digital firms’ ability to access government contracts. Historic corruption and lack of transparency have further hindered competitiveness. Reform efforts are underway, supported by CLDP and the Ministry of Finance.
• Digital Trade Barriers: The government is addressing existing digital trade barriers through the Strategic Plan for Digital Transformation, led by the Executive Branch.
• Data Localization: Guatemala has not implemented data localization laws but rising concerns around privacy and surveillance echo global debates. The National Trade Estimate (NTE) report published by the Office of the U.S. Trade Representative (USTR) warns that emerging localization trends may risk civil liberties and complicate compliance for U.S. firms.
• Technology Barriers: Gaps in digital infrastructure and uneven regulatory enforcement hinder technology adoption, particularly in telecommunications and emerging technologies.
• Internet Services Access: National internet penetration is estimated at 60% in 2025, but rural coverage remains low. Limited competition in the telecom sector and regulatory inefficiencies further restrict digital growth.
• Third Country Influence: While Guatemala is a U.S. ally in tech, influence from countries such as Estonia and non-market economies is growing. Estonia is increasingly seen by local officials as a digital model, which may shift focus away from U.S. standards.

Despite these challenges, the focus of the Arévalo administration on digital transformation, including digitalization, is encouraging and offers U.S. companies considerable commercial opportunities.

Strategic Technologies

Guatemala presents opportunities in the digital trade sector, particularly in e-commerce, fintech, and digital services. As the country gradually improves its digital infrastructure and regulatory environment, U.S. businesses can leverage their technological expertise and innovative solutions to capture a growing market. The National Trade Estimate report from the U.S. (NTE) report from the U.S. Office of Trade Representative (USTR) underscores the importance of continued engagement to overcome existing barriers and capitalize on these opportunities.

• Strategic Technologies Core Sectors:  

  • Renewable Energy Generation and Storage: Guatemala continues to prioritize clean energy, launching of the largest energy tender, the PEG-5, aimed to contract up to 1,400 MW (between 700-900 in liquid natural gas, LNG) with 15 years power purchase agreements starting 2030. At the same time, there is a growing momentum for energy storage technologies to complement the country’s renewable source energy generation. The National Electric Energy Commission (CNEE) resolution 128-2024 allows autonomous hybrid generation systems with storage to participate in the wholesale electricity market, meaning the storage systems are being recognized legally for their role in grid stability. Additionally, in April 2024, the government announced a rural electrification program backed by the Inter-American Development Bank (IDB) with a USD 250M loan to deploy renewables plus-storage mini grids, and individual solar + battery systems in underserved areas.
  • Financial Technologies: The fintech sector has most recently demonstrated its capacity for growth, with opportunities for digital payment systems, blockchain technology, and online banking solutions. These technologies can enhance financial inclusion and streamline transactions in both urban and rural areas.
  • Quantum Technologies: While still in it emerging stages globally, Guatemala could explore in the medium term, partnerships and investments in quantum technologies to foster innovation and attract tech companies looking to experiment with these emerging tools.

• Cross-enabling technologies:  Guatemala presents significant opportunities in enhance productivity and efficiency across various industries.

  • Integrated Communication and Networking Technologies: With the increasing demand for reliable internet access, opportunities exist in expanding 5G networks using Open Radio Access Network (ORAN) technologies and sub-sea cables. These advancements can improve connectivity, essential for the development of smart cities and the broader digital economy.
  • Advanced Computing: The introduction of high-performance computing solutions would benefit industries such as finance, healthcare, and manufacturing by improving data processing capabilities and enabling more sophisticated analytics.
  • Advanced and Networked Sensing and Signature Management: These technologies would enhance sectors like agriculture, logistics, and public safety by providing real-time data and monitoring solutions.
  • Human-Machine Interfaces: These interfaces, including augmented reality (AR) and virtual reality (VR), have the potential to transform sectors such as healthcare, and others by offering immersive experiences and improving user interaction with digital systems.
  • Artificial Intelligence: AI offers significant potential for automation and data-driven decision-making across industries, including finance, healthcare, and customer service. Guatemala’s growing tech ecosystem can leverage AI to improve efficiency and competitiveness.
  • Data Privacy, Data Security, and Cybersecurity Technologies: Guatemala is increasingly positioning itself as an attractive market for data privacy, security, and cybersecurity solutions, driven by rising connectivity, expanding internet penetration, and the growth of e-commerce and digital payments that require robust data protection. The cybersecurity market is projected to continue growing 9% in 2025, generating need for better network security and cloud security. Guatemala is also moving forward with a Cybersecurity Law (Initiative 6347) and potential alignments with international frameworks like the Budapest Convention, which will increase regulatory certainty and compliance standards.

• Good and services export opportunities for U.S. companies to contribute to regional and global supply chain resilience.

  • Mining concession projects and services: Guatemala has deposits of nickel, gold, silver and other industrial minerals; however, the sector is facing regulatory challenges that has led to a shrinkage and various mine closures.
  • U.S. mining equipment: There is still demand for modern and efficient mining equipment. U.S. companies can offer advanced mineral processing technologies and equipment to align Guatemala’s transition to a circular economy.
  • Transportation and logistics services, including cold chain: Guatemala’s strategic geographic location, with access to the Atlantic and Pacific Oceans, makes it a potential regional logistics hub. The U.S Government is currently working closely with the Guatemalan Government on a plan to strengthen Guatemala’s ports which will reduce shipping delays and open new opportunities for U.S. companies specializing in logistics managements, cold chain solutions, and smart supply chain technologies.

Information and Communications Technology

The Information and Communications Technology (ICT) market in Guatemala is small but expanding rapidly, driven by strong dynamism and digital transformation. In 2024, Guatemala had approximately 11 million internet users (around 60% penetration). In 2025, the sector has shown consistent growth and a strong focus on digital transformation, driven by improved network infrastructure, rising internet adoption, and government-led digitalization initiatives. While mobile connectivity is widespread in a two-player market, significant disparities remain between rural areas.

Key market segments are experiencing notable expansion including telecommunications, IT services and e-commerce.

Telecommunications 

• The telecom market is projected to be worth USD 2.79B in 2025, according to Statista.
• High mobile penetration with more than 20 million mobile connections continues to drive telecom growth. Ongoing investment 4G and 5G networks are boosting mobile data revenues, while fiber optic and satellite signal expansion is strengthening fixed broadband.
• Opportunities include the expansion of 5G networks using Open Radio Access Network (ORAN) technologies and new sub-sea cables to enhance international connectivity.

IT Services

• Guatemala’s IT services market is projected to reach USD 782.63M in 2025 with an annual growth rate of 6.7% according to Statista.
• The Guatemalan market is dominated by SME’s that require IT services to enhance their business operations. These SMEs are mainly interested in cloud computing, cybersecurity and data analytics services.
• Additionally, the Government is also a significant customer of IT services, especially in the areas of e-government and digital transformation.
• The introduction of high-performance computing solutions could enhance industries such as finance, healthcare, and manufacturing by enabling advanced analytics and faster data processing.

E-Commerce

• E-commerce is projected to reach USD 2.18B in revenue in 2025, with user penetration at 33.6%, according to Statista.
• Mobile remains the dominant purchasing channel, though cash-on-delivery continues to be the most common payment method for more than half of online consumers.

Key Market Trends

• Infrastructure Development: Despite progress, gaps persist. The government and telecom operators are investing in fiber optics, small-cell densification, and satellite technologies to expand rural coverage.
• Digitalization Initiatives: Both government and private sector efforts prioritize digitalization. The Conecta 2025 Plan seeks to enhance connectivity and infrastructure, particularly in education, health, and security.
• Increased eCommerce: Increased cross-border e-commerce is reshaping the market. The IT services sector is shifting toward cloud computing, driving demand for cybersecurity solutions amid rising threats.
• Consumer Demand: Remittances from abroad are fueling disposable income, boosting purchases of smartphones and fintech applications.
• Cybersecurity Growth: Accelerated digital adoption is amplifying cybersecurity risks, creating stronger demand for robust security solutions.
• Innovation and Talent: Guatemala continues to face challenges in global innovation rankings, particularly in human capital and research. However, a sizable pool of bilingual IT professionals enhances its position as a nearshore outsourcing hub.

Trade Events

These are some of the most relevant events that take place in Guatemala:

• Innovation & Technology Expo-Congreso: February 2025. Organized by the Guatemalan Chamber of Industry, this annual event brings together hundreds of local and international guests to discuss cybersecurity, intelligence, and fintech solutions.
• Guatemala Fintech Day: May 2025. Organized by the Guatemalan Fintech Association, the event includes conferences and meetings to foster dialogue and collaboration between different actors in the financial and corporate ecosystem, with a particular focus on the adoption of financial technologies.
• TechSoup Connect Guatemala Chapter: October 2025. This virtual event is organized by Campus TEC, a technological innovation center that brings together entrepreneurs and companies to promote the development of new technologies, providing access to spaces with the necessary elements to make new ideas a reality.

Resources

• Secretaría de Innovación Pública (SIP): Leads digital government strategy, e-government initiatives, and public-sector IT modernization. www.sip.gob.gt
• Ministerio de Comunicaciones, Infraestructura y Vivienda (CIV): Oversees national telecom policy, infrastructure planning, and connectivity programs. www.civ.gob.gt
• Unidad de Gobierno Electrónico y Tecnologías de Información y Comunicación (UGETIC): Implements ICT policies, digital services, and interoperability standards for public institutions. www.gob.gt/portal/go
• Superintendencia de Telecomunicaciones (SIT): Regulates telecommunications operators, spectrum allocation, and market competition. www.sit.gob.gt
• Instituto de Fomento de Exportaciones de Guatemala (INTECAP – ICT programs): Provides ICT skills training. www.intecap.edu.gt
• Banco de Guatemala – Fintech and Payments Oversight: Regulates digital payment systems and supports financial inclusion initiatives. www.banguat.gob.gt
• Consejo Nacional de Ciencia y Tecnología (CONCYT): Supports R&D in emerging ICT and innovation projects, including AI, quantum computing, and software development  www.concyt.gob.gt 

Contact Information

Interested parties may contact Commercial Specialist Carolina Barrientos at carolina.barrientos@trade.gov