Report 31 Aug 2026

Public Sector - Market View - Sweden

The public sector in Sweden is undergoing a major digital transformation driven by cybersecurity, AI adoption, interoperability, and digital sovereignty concerns. This Market View outlines market dynamics, major contracts, and strategic implications for buyers and suppliers operating in the Swedish public-sector landscape.

Executive snapshot

Focus: IT expenditure trends, defense & law enforcement, healthcare, government agencies, and provider strategies in the Swedish public sector.

Key findings

  • Rising IT spend: Total public-sector IT expenditure approaches SEK 370 billion in 2026, with projected growth of ~5.7% year on year.
  • Sovereignty & security: Heightened emphasis on digital sovereignty and stringent security, driving the demand for on-premises, compliant solutions and local/regional partners.
  • AI scaling: Shift from experimentation to large-scale AI deployments (e.g., AI Verkstad, national co-financing for EU DIGITAL initiatives) to improve citizen services and administrative efficiency.
  • Sector highlights: Defense budgets are ballooning (SEK 175 bn in 2026), large contracts in security and biometric systems, electronic health records – transitions and interoperability challenges across regions.
  • Provider landscape: Strong roles for Nordic specialists (Knowit, Atea, Advania, Tieto) and global consultancies (Capgemini, CGI); market fragmentation and sustainability as differentiators.

Strategic implications

  • For buyers: Adopt standards-based architectures, embed cybersecurity, and prioritize interoperability.
  • For providers: Emphasize local presence, compliance with EU AI/privacy frameworks, and sustainability-aligned offerings.

Why this matters

This Market View provides stakeholders with actionable insights to navigate procurement priorities, vendor selection, and investment opportunities across the public sector in Sweden.

 

Recommended advisory: PAC Leadership Session – Smart Defense Vendor Landscape