Sweden Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in sweden, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Overview

Sweden is widely recognized as a leader in digital innovation, consistently ranking among the top countries in global indices measuring Information and Communication Technology (ICT) readiness and adoption. The country’s digital landscape is characterized by a strong commitment to innovation, a robust infrastructure, and a supportive regulatory environment, all of which have propelled Sweden to the forefront of the global digital economy. 

The digital sector represents an integral part of Sweden’s economy. The accelerated technology adoption process that began with the outbreak of the coronavirus (COVID-19) pandemic will only continue, driven by the increasing use of digital technologies, including cloud computing, artificial intelligence, and IoT. Companies in the digital economy stakeholder spectrum include everything from digital technology providers and enablers to users/beneficiaries of digital technology, with tremendous representation from U.S. tech firms. Digital technology spans every conceivable sector from traditional tech sectors like cybersecurity and telecoms to health, energy, and even consumer goods and food delivery.  

Sweden’s ICT infrastructure is among the most advanced in the world. The country boasts widespread broadband access, with nearly 99% of households having access to the internet. High-speed connectivity, including 5G networks, is rapidly expanding, supporting the growth of IoT (Internet of Things) and industrial digitalization applications, smart cities, and digital health services. Additionally, Sweden’s commitment to digital literacy ensures that a vast majority of the population is not only connected but also proficient in using digital tools. 
Sweden and the United States engage in frequent and deep cooperation and dialogue on digital issues, particularly through the US-EU Trade and Technology Council, a transatlantic political body which serves as a diplomatic forum to coordinate technology and trade policy between the United States and European Union. The fourth meeting was held in Sweden in 2023 and one of the subjects was to identify and promote additional commonalities in the EU and U.S. digital trade policies and to promote global digital trade principles that support shared democratic values. 

Market Challenges  

Regulatory Environment

The United States and the Member States of the European Union (EU) share the largest economic relationship in the world. Trade and investment flows between the United States and the EU are a key pillar of prosperity on both sides of the Atlantic and generate substantial economic opportunities. Sweden follows EU legislation governing the digital economy. For more detailed information see the EU Country Commercial Guide.

Digital Trade Barriers  

U.S. cloud service providers have experienced difficulties with public procurement in Sweden. To address these problems, in July 2023, the Swedish parliament adopted a revision to the secrecy act (OSL) to resolve some of the public procurement difficulties for cloud solutions. Together with the renewed adequacy decision between the EU and U.S., the U.S.-EU Data Privacy Framework, public sector confidence in procuring leading cloud service technologies has improved. However, advancements for U.S. cloud services in Sweden have recently been overshadowed by the EU Cloud Services Cyber Security Certification Scheme. This initiative has raised alarms among some U.S. companies, especially concerning its potential repercussions for cloud service providers operating outside of the EU. 

The global competition for talent is also a challenge in Sweden. As digital industries continue to grow, there is an increasing demand for skilled ICT professionals. While Sweden has a strong educational system, the competition for top talent is fierce, and attracting skilled workers from abroad can be hindered by immigration policies and high living costs in cities like Stockholm. 

As a member of the EU, Sweden complies with EU regulations on digital matters, including the Digital Services Act (DSA) and the Digital Markets Act (DMA). 
Digital Trade Opportunities

Digital Trade Opportunities 

Cross-Sector Enabling Technologies

Sweden’s digital economy presents opportunities, particularly in sectors such as e-commerce, and digital health. Swedish companies like Klarna and iZettle (now US company Zettle by Paypal) have become global leaders in digital payment solutions, showcasing the country’s capacity for innovation. Swedish businesses have responded by investing in robust digital platforms and logistics networks. The Swedish e-commerce market is developed, with a penetration rate of about 88%, as reported by Postnord.

The U.S. partnership and collaboration with Sweden on innovation, technology, and sustainability is evident in shared R&D efforts, technology exchanges, and joint participation in international forums like the U.S.-EU Trade and Technology Council highlighting this strong relationship.  Another good example is the recent five-year memorandum of understanding on research and innovation between Vinnova (the Swedish Innovation Agency) and the U.S. National Science Foundation.  This will open more possibilities for collaboration in several research-intensive areas, such as next-generation wireless networks (Next-G), 6G, Artificial Intelligence and machine learning, quantum science, and STEM learning. 

In digital health, Sweden is leveraging its strong healthcare system and advanced ICT infrastructure to develop cutting-edge solutions. The country’s commitment to data privacy and security has also made it a trusted environment for developing health tech innovations. 

Sweden’s commitment to sustainability is driving the development of green ICT solutions, with initiatives focused on reducing the carbon footprint of data centers and promoting energy-efficient technologies. Moreover, Sweden’s strategic focus on AI, cybersecurity, and blockchain technology could further strengthen its position in the global digital economy. 
To meet the complex challenges of the increasingly digital environment, the Swedish government has earmarked funds for strengthening the national cybersecurity awareness. The proposal aims to invest $30 million in 2026, $35 million in 2027 and $40 million in 2028 to improve both public and private sector preparedness for cyber-attacks and proactive protection. The funding will be divided between the National Cybersecurity Center and municipalities and regions.

Specific Industry Sub-sectors  
Cybersecurity

Sweden is one of the most well-connected countries in the world, with over 98 percent of the population having access to internet.  With the growing number of connected devices, remote access and online activity, reported instances of cybercrime are on the rise.  According to Check Point Software’s recent report, cyber-attacks have increased by 70 percent in Sweden during the first quarter of 2025 compared to 2024. The percentage is higher than with any of the Nordic neighbors and it makes Sweden also one of the most hit countries in the EU. Ransomware attacks (including Triple Extortion), phishing attacks using AI tools and sophisticated deepfakes and LOTL (Living off the Land) attacks are the most common types of disruptions that companies and both public and private sector entities are experiencing. Companies and public sector are getting better at protecting their systems against ransomware attacks and making sure their cyber insurance is sufficient, but Sweden continues to be one of the most exposed countries both by the number of attacks and how much they cost the companies.

In December 2020, the Swedish government announced the formation of a National Cybersecurity Center, led by four authorities:  Swedish Civil Contingencies Agency (MSB), Swedish National Defense Radio Establishment (FRA), Swedish Armed Forces and Swedish Security Service (SÄPO), and supported by other relevant stakeholders, including Swedish Post and Telecom Agency (PTS), Swedish Criminal Investigation Service (RKP), Swedish Defense Materiel Administration (FMV), Swedish Certification Body for IT Security (CSEC) and Military Intelligence and Security Service (MUST).  In early 2025, the center’s leadership moved to the Swedish National Defense Radio Establishment (FRA) and the Swedish CERT that currently is part of the Civil Contingencies Agency (MSB) will also become part of the center in 2026.

The government has assigned PTS and MSB to prepare for the NIS 2 Directive. MSB will develop a national notification system for operators covered by NIS 2 and regulatory environment for the notification process, and PTS will develop regulations and security measures for the operators. Both agencies have until January 2026 to report on their suggested solutions to the Ministry of Finance.

Opportunities

To meet the complex challenges of the increasingly digital environment, the Swedish government has earmarked funds for strengthening the national cybersecurity awareness. The proposal aims to invest $30 million in 2026, $35 million in 2027 and $40 million in 2028 to improve both public and private sector preparedness for cyber-attacks and proactive protection. The funding will be divided between the National Cybersecurity Center and municipalities and regions.

The public sector and critical infrastructure sectors (transportation, energy, and communications) account for roughly 30 percent of the cybersecurity solutions demand. Investments in cybersecurity are expected to continue to grow in 2026 due to the government’s priorities and an overall increase in IT security awareness.  

Legacy manufacturing companies are in the middle of advanced digitalization of their production with increased systems’ integration, connected devices, and both raw and analyzed data moving to cloud-based platforms. Industrial cybersecurity has a wider scope than traditional IT security, as it involves the company’s products and production processes with sensitive IPR information.  Demand for applications such as enhanced Industrial Control Systems (ICS) capabilities and operational technology (OT) security platforms is increasing.  

In May 2024, a bilateral dialogue took place between Sweden and the United States on cyber and digital issues which marks a significant step in international cooperation. This meeting underscored the shared commitment to addressing cyber threats and advancing digital development. The dialogue highlighted the consensus on countering antagonistic cyber activities and cybercrime, including ransomware attacks. It also emphasized the importance of secure digital infrastructure, which is vital for national security, economic stability, and the protection of democracy and human rights. The collaboration extends to the development of 6G technology, showcasing the deepening partnership in digital research and technological advancement.  
 

Artificial Intelligence 
In December 2023, the Swedish government appointed an AI Commission chaired by Carl-Henric Svanberg (former CEO of Ericsson and Chairman of Volvo), tasked with strengthening Sweden’s competitiveness in the AI domain. The Commission was asked to present concrete proposals for policies that enable Sweden to develop AI in a competitive, secure, and ethical manner across both public and private sectors. In November 2024, the Commission submitted its final roadmap report containing 75 specific proposals to the government ahead of schedule.
Artificial Intelligence is an area where more collaboration and business opportunities between the U.S. and Sweden could be explored. 
Digital Economy-related trade events 

 

Stockholm Tech Show 2026, 26–27 May 2026, Kistamässan Exhibition Center, Stockholm
Overview: Northern Europe’s flagship event for digital transformation, technology, and innovation. The show unites six exhibitions under one roof—AI, Big Data, Cloud, Cybersecurity, Data Center, and DevOps—attracting thousands of professionals from across the public and private sectors.

Nordic Tech Week 2026, 15- 19 September 2027, Kungsträdgården, Stockholm 
Overview: Tech festival comprising panels, startup showcases, city pop-ups, investor forums, and networking at multiple venues across Stockholm. 

 

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