Ukaine’s digitalization is known far beyond its borders.  Ukraine has a strong IT industry with innovative companies and a large base of highly skilled IT professionals who create world-renowned startups.  The country attracts the attention of foreign investors and partners because of its efficiency in software development and high level of technological expertise, as evidenced by numerous ratings.

IT in Ukraine is an export-oriented industry that is in high demand.  Over the past ten years, exports of IT services have grown annually by an average of 19%, reaching a record high of $7.3 billion in 2022. The United States remains a leading importer, spurring many Ukrainian startups to incorporate offices in the USA and hire local sales teams – allowing them to better access to U.S. clients, attract VC investments, participate in incubation and acceleration programs, protect IP under the U.S. law and, in the long-term, go public or get acquired by U.S. company.

With 2000 operating IT companies, 346,000 IT specialists, and 2600 startups Ukraine ranks 46th in the global startup ecosystem (up from 50th in 2022) and 2nd in Central and Eastern Europe.  Ukraine holds strong position in industrial tech, defense tech, health tech, med tech, ed tech, cybersecurity, ecommerce, fintech, mil tech and media.

The presence of major global tech firms like Google, Microsoft, Boeing, Samsung, and Ericsson in Ukraine, alongside homegrown unicorns such as Grammarly and Genesis, underscores the country’s importance on the world tech stage. The Diia.City digital business development platform, introduced by the Ministry of Digital Transformation in February 2022, has attracted over 1700 tech companies and over 104,000 specialists by offering favorable tax conditions and business tools. It provides benefits to Ukrainian and foreign owned companies incorporated in Ukraine including lower labor and corporate taxes, venture investment tools, and IP protection guarantees.

To join Dia.City a company should complete its application at https://city.diia.gov.ua/en/

Cybersecurity

Cybersecurity has become a critical focus since the Revolution of Dignity in 2014, with Ukraine sharpening its cyber defense capabilities in response to the evolving cyber warfare landscape. The shift towards more targeted and impactful cyber tactics in recent years necessitates advanced training, technical assets, and tools for enhancing cyber resilience. In 2024, the number of cyberattacks on Ukraine increased by nearly 70%, reaching 4,315 incidents. The goal of hackers is to steal sensitive information and destroy data and information systems. According to the State Service of Special Communications and Information Protection of Ukraine, the most frequently targeted entities include:

• Local authorities
• Government and governmental organizations
• Security and defense sector
• Energy sector
• Commercial organizations
• Telecommunications

The most common types of attacks are:

• Malware distribution
• Phishing
• Malicious connections
• Account or system compromise

To bolster Ukraine’s cyber defense, Estonia with Ukraine, the Netherlands, Canada, Poland, Germany, Denmark, United States, and the United Kingdom launched the Tallinn Mechanism, the goal of which is to amplify the donors’ cyber support to Ukraine. The Mechanism has an Estonian front office in Kyiv, a Polish back office in Warsaw and a coordination group that unites representatives of Ukraine and all donors. NATO and the EU are observer members in the Tallinn Mechanism. This initiative aims to coordinate civilian cyber capacity building, reinforce Ukraine’s cyber resilience, and ensure effective collaboration with other donor initiatives.  According to ESTDEV, in 2024, donors worked together to accumulate $229 million (€200 million) to support Ukraine’s resilience.

Telecom

The state of the telecommunications market in Ukraine in 2024-2025 is characterized by the growth of the fixed internet segment, the active introduction of new technologies, including the pilot deployment of 5G in five cities (Kyiv, Lviv, Odesa, Kyiv, and Kharkiv), and the dominance of major operators in the mobile market, which demonstrate leading positions in network speed and coverage. Internet services are used by most of Ukrainians daily, while the xPON technology development contributes to subscribers’ number increase in the fixed segment.

The telecommunications sector of Ukraine encompasses nearly 50 million SIM cards, with total revenue amounting to approximately $2 billion. Kyivstar, Lifecell, and Vodafone are the largest telecom operators in the country.

According to public data, despite the challenges caused by the war, industry continues to develop. During the reporting period, investments in the electronic communications sector amounted to $331 million, which is 11% more compared to the previous year. Most likely around half of those investments were made by mobile and fixed operators in the private sector to repair destroyed assets. The state’s goal is to provide high quality mobile service to 98% of its population by 2030. To achieve this goal, the government has reached consensus with the operators to accelerate investment into their network development.

Ukraine is set to become the first country in Europe to launch mobile communication based on Starlink satellite technology, with messaging services and full satellite internet and voice services available by mid-2026.  The project, led by Kyivstar in partnership with SpaceX, is based on new satellites equipped with built-in modems that function as orbital base stations, transmitting signals directly to smartphones without the need for ground towers.  The initial phase will enable messaging via apps like WhatsApp, Signal, and Viber in areas without mobile coverage, using OTT (over-the-top) technology to transmit data directly through internet channels.  Kyivstar CEO Oleksandr Komarov noted that messaging could be available by the end of 2025, with satellite internet and voice services following in early 2026. The rollout of satellite-based mobile communication carries strategic importance for Ukraine, ensuring connectivity even if ground infrastructure is destroyed that would provide a critical advantage amid wartime conditions and technical disruptions.  In August 2025, Kyivstar Group was listed on Nasdaq under the ticker KYIV and is the first Ukrainian investment opportunity to trade on a U.S. stock exchange.

As stated in the Ukraine Digital Development Country Profile: “Looking ahead to 2025, Ukraine’s digital transformation remains firmly oriented toward integration, modernization, and resilience. The ICT sector is poised to play a central role in Ukraine’s recovery and development. Priorities for 2025 include deeper alignment with the EU digital market, expanding universal access to communication services, and investing in infrastructure capable of withstanding ongoing challenges.  As a critical enabler of economic recovery, innovation, and societal resilience, the ICT sector continues to underpin Ukraine’s ambitions for a modern, connected, and globally integrated digital future.”

E-Commerce

According to traffic estimates of Similarweb, over 90% of Ukrainians use internet, with 78% of these daily.  Internet penetration in Ukraine is robust, yet shopping online is at early-stage development and provides opportunities for business expansion. In Ukraine, the shopping online share is three times smaller than in Britain and America, about 15-20% compared to 45-50% in certain categories.

According to Dev.ua in 2024, the Ukrainian e-commerce market reached nearly $6 billion in spending, a 25% increase from 2023, with approximately 11 million online shoppers making an average of 17 purchases per year at an average transaction value of $31. The market share of e-commerce in total retail was about 10%.

The Ukrainian e-commerce market includes 15 leading players with a combined revenue of approximately $2 billion in the goods segment, 10 top service companies in e-commerce with a combined revenue of $330 million as well as top 5 infrastructure companies involving in e-commerce with a combined revenue of $8 million.  The major e-commerce players in Ukraine include Rozetka, Prom.ua, Epicenter, Allo, and F.ua for goods and electronics, while OLX serves as online classifieds platform. Other specialized marketplaces are emerging, such as Brave 1 for military technology and CodeUA for tech services. In addition to national marketplaces, online stores, and price aggregators, Ukrainians are increasingly utilizing foreign platforms, primarily from China, the EU, and the United States such as AliExpress, Temu, IHerb, and others.