Bulgaria’s Technology, Media, and Telecommunications (TMT) sector is continuing its steady and dynamic growth, reflecting the country’s ongoing digital transformation and its increasing role as a regional technology hub.
In 2025, the Bulgarian ICT market, which encompasses the broader TMT sector, is reportedly valued at approximately USD 9 billion and is projected to reach USD 10 billion by 2030, with an expected annual growth rate of just over 3%. This growth is fueled by several converging trends and the active participation of both global and local players.
The Bulgarian telecommunications sector remains highly competitive, with major operators such as A1 Bulgaria, Yettel, and Vivacom leading the industry in infrastructure upgrades and service innovation. These companies are not only investing heavily in modernizing their networks but in recent years have been also actively expanding their market presence through the acquisition of smaller regional operators. As a result of these acquisitions, all three major operators now offer comprehensive packages that include high-speed internet, pay-TV, and mobile telecom services, positioning themselves as fully integrated providers for both residential and business customers.
Another key trend in the Bulgarian TMT landscape is the continuous adoption of cloud technologies. Businesses across industries are increasingly migrating to cloud infrastructure to enhance efficiency, scalability, and data security. This shift is supported by a heightened focus on cybersecurity and compliance, attracting investments from international technology companies and encouraging the development of local expertise. The expansion of cloud services is also closely linked to the growth in IT services, with demand rising for solutions in data analysis, software development, and managed services.
Digital transformation is a central theme in both the public and private sectors. The Bulgarian government, in partnership with the European Union, is investing in digital infrastructure, e-government initiatives, and digital literacy programs. This is complemented by private sector efforts to modernize operations and introduce advanced technologies such as artificial intelligence, automation, and remote work solutions. The result is a vibrant ecosystem that supports innovation and the growth of digital services.
Internet penetration in Bulgaria is among the highest in the region, with nearly 89% of households having access as of 2023. This widespread connectivity underpins the growth of digital content consumption, including streaming, online gaming, and smart home technologies. Social media usage is also remarkably high, with almost all Bulgarians using platforms like Facebook, Instagram, and TikTok, which in turn drives significant data traffic and highlights the need for robust telecommunications infrastructure.
The competitive landscape in Bulgaria’s TMT market features a mix of major international players and strong local companies. Companies such as IBM, Microsoft, SAP, DXC Technology, HP, VMWare, Honeywell, and Oracle have established a significant presence, often collaborating with local partners and investing in research and development centers. The legal and regulatory environment is also evolving.
Despite an overall positive outlook, the sector continues to grapple with several significant challenges. Intensifying competition is putting sustained pressure on revenue growth. Additionally, the ongoing shift of consumers from traditional fixed-line and SMS services to mobile and over-the-top (OTT) messaging platforms is further eroding traditional revenue streams. Broader economic factors – including population decline and rising unemployment – also present potential headwinds that could constrain long-term investment and growth prospects for the industry.
In 2025, Bulgaria faces significant cybersecurity challenges, including a surge in AI-driven attacks, ransomware, and social engineering targeting both the public and private sectors. Delays in implementing the EU’s NIS2 Directive have created regulatory uncertainty. Addressing these issues requires prompt government action, investment in talent, and stronger collaboration across sectors.
Nevertheless, the opportunities presented by digitalization, cloud adoption, AI, and the ongoing expansion of 5G are significant. Bulgaria is increasingly positioning itself as a regional hub for technology outsourcing and innovation, leveraging its skilled workforce, low taxes, and a competitive cost structure.
In summary, Bulgaria’s TMT sector in 2025 stands out for its robust growth, technological advancement, and strategic importance in Southeast Europe. The convergence of digital transformation, telecom innovation, and strong market competition is creating a fertile environment for continued investment and development, making Bulgaria an attractive destination for technology-driven businesses and investors.
By Nikolay Zisov, Partner, Boyanov & Co
This article was originally published in Issue 12.5 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
