Report 06 Oct 2025

Public Sector - InSight Analysis - Spain

The Spanish public sector IT Services market is undergoing one of Europe’s most ambitious digital transformations, driven by national strategies, regional initiatives, and EU funding. Digitalisation has become central to public governance, improving efficiency and strengthening citizen engagement. By 2024 and 2025, Spain demonstrated that technology is not just infrastructure but a pillar of resilience and competitiveness.

Central to this change is the Plan for the Digitalisation of Public Administration 2021–2025, aligned with España Digital 2026. Built on three pillars—modernising the General State Administration, launching high-impact sectoral projects (e.g., in healthcare, justice, and employment), and supporting local and regional administration upgrades – the plan is backed by €2.6 billion in funding. The General Secretariat for Digital Administration coordinates implementation across ministries, balancing national guidance with decentralised execution.

Sectoral progress is evident. Healthcare has advanced through electronic health records, e-prescriptions, and telehealth. The justice system is piloting digital case management and AI-driven analytics. Employment services now operate digital portals for job matching and benefits. Spain ranks among EU leaders in digital citizen-facing services, though business-facing services remain less developed. Small and medium enterprises (SMEs) show slower adoption: only 56% use cloud or big data, and 11% use AI. These gaps are targeted by industrial policies such as the €12.25 billion PERTE Chip initiative and the updated National AI Strategy, aimed at developing capabilities and nurturing a local tech ecosystem.

Spain’s decentralised governance adds complexity and opportunity. Regions like Madrid, Catalonia, and Andalusia lead in investment, while cities like Málaga and Valencia pilot innovative citizen-focused services. Agencies such as Madrid Digital and Catalonia’s CTTI act as digital accelerators, setting standards and enabling replication across the country. This blend of national leadership and regional creativity produces a diverse but coordinated public IT services landscape.

Cloud computing and CPD (data centre) management are foundational enablers. The 2023 Cloud Services Strategy outlines a hybrid cloud model, consolidating state data centres to reduce costs and emissions while enabling SaaS delivery to all levels of administration. Spain’s Red SARA platform ensures secure interconnection across government bodies. At the European level, Spain participates in initiatives like GAIA-X, EuroHPC, and the Iberian Cloud Federation, positioning itself as a hub for sovereign and high-performance computing.

Cybersecurity is a national priority. Spain’s cybersecurity strategy (2023–2025), led by INCIBE, mobilises €315 million to improve awareness, develop talent, support SMEs and startups, and build regional cybersecurity nodes. Spain aims to be a top five global cybersecurity leader through public-private collaboration and EU alignment.

Artificial Intelligence (AI) is both a strategic goal and operational tool. Spain aligns with the EU AI Act and launched its own Agency for AI Supervision in 2023. It has also created ALIA, the first large open-source AI model in Spanish. The 2024–2025 National AI Strategy allocates €2.1 billion for talent development, adoption, and ethical oversight. AI is already used in tax collection, healthcare chatbots, and public document automation, supported by significant supercomputing investments.

Spain also looks beyond AI. Its National Quantum Technologies Strategy (2025–2030), with €800 million in funding, aims to develop quantum computing, secure communication, sensing, and post-quantum cryptography. Digital privacy is defined as a constitutional right, highlighting the intersection of innovation and public trust.

Spain’s public sector IT market reflects a mature, multilayered transformation – combining national strategy and local innovation, industrial policy and public service reform, cutting-edge technology and digital inclusion. The challenge ahead is to maintain this momentum and ensure long-term digital competitiveness and social equity.