Tech 2025/2026 – Romania’s Tech Sector Slows Down, Eyes Consolidation in 2026
Headline Data: The Romanian IT&C industry grew to €17.7 billion in 2024, up 13% nominally (≈7% in real terms). It’s the slowest expansion in recent years, as fiscal changes clipped its wings. Employee count plateaued around 196,000 in 2024, after peaking above 200k in 2022.
Context & Challenges: The deceleration comes after a decade of double-digit growth. In late 2023, the government curtailed tax incentives for IT workers, a move that “put the brakes” on the sector’s growth according to industry association ANIS. Additionally, global headwinds – softer demand in key client industries (e.g. automotive) and the efficiency gains from AI – created a more cautious environment. As a result, 2024 marked a turning point: growth continued, but below its 10–15% annual potential, and Romania’s contribution of IT&C to GDP has nudged closer to 7–8%, rather than the 10% once envisioned for 2025.
Key Developments in 2025: Despite headwinds, the tech sector did see important positives in 2025. Big players doubled down on investment. For instance, e-commerce leader eMAG announced a 1.2 billion lei tech budget for the fiscal year – over 30% higher than the previous year – focusing on cloud infrastructure and AI capabilities. Cluj-based software group AROBS embarked on international expansion (including projects in the US and Western Europe) targeting high-value areas like embedded systems and aerospace. In parallel, global tech giants kept fueling the AI race: their combined AI spend for 2025 is estimated at $320 billion, up from $230 billion in 2024. This trend is reverberating in Romania, bringing more cloud and AI services demand, but also stiffer competition and a need for specialization. On the telecom front, 2025 saw the full integration of recent mergers (Orange’s takeover of fixed-line incumbent, and Vodafone’s acquisition of Telekom’s mobile operations). This consolidation is reshaping the telecom sub-sector, pushing operators to invest in cybersecurity and 5G to gain an edge.
What’s Next – 2026 Outlook: Industry leaders characterize 2026 as a year of “maturation and natural selection”. Consolidation is the buzzword. We expect to see more M&A among IT service firms, as companies seek scale to offset rising costs. Profit margins are under pressure (the days of 20%+ annual wage growth in IT are over), so players will differentiate through efficiency. Financial discipline is becoming as important as innovation – a notable shift in a field usually driven by rapid expansion. Start-ups and scale-ups will likely face a more scrutinous funding environment, favoring those with clear product-market fit and sustainable unit economics.
Crucially, technology investment isn’t stopping, it’s refocusing. Companies are channeling resources into two main areas: artificial intelligence and cybersecurity. AI, in particular, is seen both as an opportunity and a threat. Romanian tech firms are integrating AI into their products (from chatbots to predictive analytics) to stay competitive. At the same time, the rise of open-source AI alternatives is a cautionary tale: even globally, the “AI boom” led by trillion-dollar companies saw pushback from leaner players (e.g. open-source models challenging proprietary ones). Romanian developers are active in this open-source movement, which could spawn new local products or companies. Meanwhile, cybersecurity demand is surging – not least because Romania’s strategic position and increased cyber threats in the region. Telecom operators like Orange Romania have flagged the exponential rise in cyberattacks and are investing accordingly.
Romania’s tech sector enters 2026 with a cautious optimism. Growth is likely to be modest (mid single-digit in real terms) but healthy relative to the EU average. The market is clearly transitioning from an easy-growth phase to a mature phase. In this new era, the winners will be those who can innovate under constraints – firms that marry creativity with cost control. The potential is undeniably there: Romania remains a significant tech hub in CEE, with a strong talent pool and successful entrepreneurs. However, 2026 will demand a more measured, disciplined approach. As one industry executive summed up, “Anyone can sail in calm seas; 2026 will show who can navigate the storm – those who do will emerge stronger.”
(Note: AUM = assets under management; CAGR = compound annual growth rate.)
