This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/11/2017


Overview

One of Latvia's priorities since regaining independence has been to update its outdated data and voice communications sectors.  Large investments have been made both in telecommunication and high-speed data transmission networks, and that trend is expected to continue.  U.S. companies have had recent successes competing for government contracts in this area, providing both technology and services.
 
Both Internet and electronic commerce are rapidly penetrating the Latvian market and increasing the need for information and communications technologies (ICT) products, services, and support.  The total ICT sector turnover has reached approximately $4 billion, and the sector accounts for approximately 4% of total GDP.
 
For these reasons, the ICT sectors, including computer services, computer software, computer hardware and peripherals, and telecommunications services, have significantly increased their roles in Latvia's economy during recent years.  There are approximately 6,000 companies operating in the Latvian ICT sector.
 
Computer hardware has a significant share of the Latvian ICT market.  Although the locally-produced software development sector has significantly increased its role in Latvia's economy (including exports) during recent years, foreign-sourced software continues to be important.  After several years of austerity budgets, the Latvian government is expected to seek to renew its computer hardware and software over the coming years.
 
Leading Sub-Sectors

Good prospects can be found in almost any computer services sphere if market size and sector maturity are taken into account.  Latvia’s highly educated, multilingual, and competitively-priced workforce has led to opportunities in the field of business support centers.  The rapid development of the ICT sector has given rise to opportunities in the fields of data and network security.  E-government initiatives have opened opportunities for participation in Latvian government tenders for a wide range of ICT-related services.

The best prospects for U.S. computer hardware exports to Latvia include new personal computers with the latest versions of processors, small and medium multi-processor servers, multimedia equipment, LAN accessories and relevant computer parts, and Internet protocol-related equipment.  Second-hand and overstock personal computers represent a significant market niche. The principal consumers of these products in Latvia are private individuals who obtain computers for home use. Recent studies show that there is also a growing demand for business management software among medium and large enterprises in Latvia.  Another potential growth sector is cyber security software, as cyber threats and business awareness of them increase.

Opportunities

Please see the Supplement to the Official Journal of the European Union dedicated to European public procurement.
TED Home
 
Latvian Export and Import Directory
 
The popularity of the Internet in Latvia has heightened the need for computer and network security.  This sector will grow, especially accounting for the growing popularity of online banking in the country.  Opportunities can also be found in: Internet/intranet systems and networks implementation, education and training, support services, software development and re-design, enterprise resource planning services, implementation of Internet B2B software, development of payment card systems, adaptation of foreign software, development of electronic communications, and development of call centers.

Retail opportunities include software and hardware for home and business use.  We expect government computer hardware and software tender opportunities to increase as the budget situation improves.  There are also good opportunities for companies that want to use Latvia as a logistical center for distribution in Northern Europe and neighboring Russia.  Considering the relatively low cost of production and well-educated workforce, computer companies could also consider placing production lines in Latvia.  The success of enterprises such as ELKO grupa (the largest Latvian ICT wholesale company), Hanza Elektronika, and Mikrotik show the viability of such plans.

Web Resources

Latvian Internet Association 
Latvian Information and Communications Technology Association 
Investment and Development Agency of Latvia
Latvian ICT Sector overview
E-government of Latvia
Latvian Electrical Engineering and Electronics Association

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More Information

Latvia Information and Communication Technology Trade Development and Promotion