Cyprus IT sector growth and future investment trends for 2026

On November 12, 2026, the Cyprus Computer Society (CCS), in partnership with the research organization IMR, presented the findings of the 2026 Cyprus IT Market Survey at an event in Nicosia. The data revealed that the IT sector contributed €4.1 billion to the Cypriot economy in 2025, accounting for 12.5% of the country's GDP. This performance significantly outpaces the European average of 5.6% and represents an overall sector growth of 435% between 2016 and 2025.

Despite the sector's historical growth, the survey identified a notable gap in technology adoption. In 2025, only 9.27% of Cypriot businesses utilized Artificial Intelligence (AI) compared to the European Union average of 19.95%. Addressing this gap is a key focus, as 83% of participating organizations indicated an intention to invest in AI throughout 2026. Furthermore, 71% of companies expressed an urgent need for enhanced cybersecurity measures.

The event was attended by government representatives, including Deputy Minister of Research, Innovation and Digital Policy Dr. Nikodimos Damianou, whose address was delivered by Deputy General Director Stavri Ttofa. The findings serve as a strategic roadmap for the industry's digital transformation, highlighting both the robust economic standing of the sector and the current challenges in digital adoption that local businesses aim to overcome in the coming year.