Bulgaria’s Software Sector Reports BGN 8.7 Billion in Revenue for 2023, 12.4% Growth Expected in 2024

Kaloyan Kirilov

Bulgarian Association of Software Companies (BASSCOM) Board Chair Krum Hadzhigeorgiev (left) and BASSCOM Board Member Georgi Yanchev, Sofia, December 13, 2024 (BTA Photo/Nikola Uzunov)

Sofia,

13.12.2024 16:52

(BTA)

The annual Barometer report by the Bulgarian Association of Software Companies (BASSCOM) reveals a 16.5% increase in revenue for Bulgaria's software sector, reaching BGN 8.705 billion for 2023, BASSCOM said here on Friday. The report's presentation was attended by European Commissioner for Startups, Research and Innovation Ekaterina Zaharieva as part of her working visit to Bulgaria.

The report includes over 6,000 companies and covers the past three years. Since companies have not yet released their financial results for 2024, it remains a forecast, explained BASSCOM Board Member Georgi Yanchev during the presentation.

For 2024, the sector is projected to grow by 12.4%, with revenues expected to approach BGN 10 billion. Yanchev said that despite challenging macroeconomic times, the software industry continues to expand. He noted that while not all companies are experiencing growth - some are even seeing a drop in revenue - the majority are growing, with some achieving annual increases of 20%, 30%, and even 40%.

The study indicates that the software sector is the top exporter of services, making up 28%. In 2023, over 450 new companies were established in this sector, generating nearly 2,700 new jobs. In 2024, more than 2,000 additional jobs are anticipated.

Data shows that the sector is currently employing over 60,000 people. They make up about 1.9% of all workers in Bulgaria and contribute 5.9% of all taxes and social security payments. A job in the software industry generates more than three times the taxes and fees compared to the national average. In 2023, the sector paid over BGN 2.3 billion in taxes, with projections for 2024 to surpass BGN 2.7 billion, the survey indicates.

The report shows that artificial intelligence is part of the processes and operations in about 95-96% of companies in the software industry. Previously, over 23% of companies planned to adopt artificial intelligence in 2023, but now that number is just over 4%.

Chair of the Bulgarian Employers' Association Innovative Technologies (BRAIT) and former BASSCOM's Board chair Dobroslav Dimitrov shared a forecast for 2026, which he believes is entirely realistic. The forecast anticipates sector revenues exceeding BGN 14 billion, exports surpassing BGN 11 billion, taxes and social security contributions totaling over BGN 3.6 billion, the creation of more than 10,000 new jobs, and employment for over 70,000 people. Dimitrov said that BASSCOM is primarily focused on education and has initiated a plan to set up 10 new technology schools in Bulgaria.

/RY/