The Analysis of the Montenegrin IT sector for the needs of ICT Cortex was conducted by CEED Consulting in the frame of RECONOMY. RECONOMY is a program of is a regional inclusive and green economic development program of the Swedish International Development Cooperation Agency (Sida), implemented by HELVETAS Swiss Intercooperation in partnership with Help and others in the Eastern Partnership and the Western Balkans
The aim of the analysis was to provide a deeper understanding of the current state of the IT sector in Montenegro, its contribution to the GDP, key barriers to its faster development, and the potential of IT as a promising sector for the country’s economy.
The findings revealed that the ICT sector in Montenegro is one of the fastest-growing, with a significant increase in the number of companies, financial revenues, and community interest. The analysis covered 1,049 companies in the sector for the year 2022, with a comprehensive consideration of the period from 2019 to 2022.
The total revenue of the Montenegrin ICT sector in 2022 amounted to 602 million Euros, a 23% increase compared to the previous year. The telecommunications sector generated the highest revenue, followed by IT services and products and the trade of IT equipment. Net earnings also saw significant growth, increasing by 102% compared to 2019. Notable companies contributing to this growth included M-tel, Crnogorski Telekom, One, Kodio, Comtrade, and Coinis.
The analysis focused on 725 IT companies operating in local and international markets, with the majority engaged in computer programming and IT consulting. There has been a remarkable increase in the number of companies, with a 46% increase compared to 2021 and a staggering 109% increase compared to 2019. The IT services and products sector showed the most progress in terms of revenue, net results, and employee numbers.
Total revenues in the IT services and products sector increased by 45% compared to 2021, while net results increased by 87%, and both figures increased by 450% compared to 2019. The number of employees in the sector also followed the growth in revenue, with a 61% increase compared to the previous year and a 161% increase compared to four years ago.
The ICT sector’s share of Montenegro’s economy has grown significantly over the years. In 2012, the total revenue of the sector accounted for nearly 4% of the GDP, while in 2022, it reached 10% of the total GDP. The ICT industry is one of the most promising economic sectors in Montenegro and has the potential to become a strategic branch for the country’s development.
The research analysis highlighted positive trends in the ICT sector, including the constant growth in the number of companies, revenues, and employment, particularly in the IT services and products segment. The presence of foreign companies in Montenegro indicates favourable conditions for the sector’s development. The study emphasized the importance of creating a business environment that encourages foreign companies to stay and supports domestic and emerging IT companies. The ICT industry has witnessed significant progress in the past four years, making Montenegro an attractive destination for IT investments and digital nomads.
The analysis also pointed out the large number of newly established companies that will likely play a significant role in the future of the Montenegrin ICT sector. Given the obtained results, the information and communication technology sector is expected to continue growing and become a strategic component in the country’s economic development.
The study can be downloaded here.
The content of this analysis is the sole responsibility of the authors and does not reflect the views of ICT Cortex or RECONOMY.
RECONOMY is a regional inclusive and green economic development program of the Swedish International Development Cooperation Agency (Sida) implemented by Helvetas in partnership with Help in the Eastern Partnership and Western #Balkan countries.
All rights reserved. Short excerpts from this publication may be reproduced unchanged without the author’s permission, provided that the source is acknowledged.
The content of this analysis is the sole responsibility of the authors and does not reflect the views of ICT Cortex or RECONOMY.
RECONOMY is a regional inclusive and green economic development program of the Swedish International Development Cooperation Agency (Sida) implemented by Helvetas in partnership with Help in the Eastern Partnership and Western #Balkan countries.
All rights reserved. Short excerpts from this publication may be reproduced unchanged without the author’s permission, provided that the source is acknowledged.
