For a long time, internationalisation for tech companies almost automatically meant looking beyond Europe. The United States was often seen as the obvious destination for ambitious companies wanting to scale. Today, I am not so sure that assumption holds true for many IoT companies.
Over the past decade, I have had the opportunity to participate in several international collaborations focused on digitalisation, sustainability and connected technologies. One thing has become increasingly clear. Some of the most interesting opportunities for Swedish IoT companies are no longer found in distant markets but much closer to home. Europe is becoming a more important market for IoT than many realise.
Why Europe is becoming the default IoT market
This development is driven by several factors. The most obvious is that the challenges we are trying to solve are increasingly shared across borders. Whether we talk about smart cities, energy efficiency, connected healthcare, industrial digitalisation or sustainable mobility, the problems look remarkably similar in Sweden, Austria, Germany, the Netherlands and many other European countries.
An ageing population places pressure on healthcare systems, and digitalisation is needed as a consequence. The same goes for cities searching for ways to reduce emissions and congestion, and industries that are expected to become more resource-efficient while remaining globally competitive. Across Europe, organisations are turning to digital technologies and IoT to address these challenges. For innovative companies, this creates an opportunity. A solution developed to solve a problem in Sweden often has relevance far beyond the domestic market.
Regulation is quietly reshaping the market structure
One of the lessons I took with me from my years in international collaborations through IoT Alliance was that European countries are often far more aligned than we give them credit for. Not necessarily in terms of politics or culture, but in the challenges we are trying to solve with technology.
What has changed in recent years is that Europe is not only becoming more aligned around common challenges. It is also becoming more aligned around the frameworks used to address them. Cybersecurity requirements, radio regulations and data governance are increasingly shaped through common European initiatives. While regulation is often perceived as an obstacle to innovation, it also creates something extremely valuable for technology companies: predictability. Building a solution for one European market increasingly means building a solution that can be adapted and scaled across many others.
This is particularly important for small and medium-sized companies. Few Swedish IoT companies have the resources to establish local organisations in every market they wish to enter. Instead, growth often depends on finding the right collaborations in terms of partners, distributors, system integrators, municipalities or industrial actors. In many cases, internationalisation starts long before the first sale. It starts with relationships.
One of the most valuable aspects of international initiatives is therefore not necessarily access to customers. It is access to networks. Companies gain opportunities to meet organisations that face similar challenges, work within the same technical domains or operate in adjacent parts of the value chain. Sometimes these encounters lead to business opportunities. Sometimes they lead to collaborations, joint development projects or entirely new perspectives on existing problems.
Internationalisation is relationship-driven
I have also noticed something else. There appears to be a growing willingness to collaborate across European borders. Perhaps it is driven by geopolitical uncertainty. Perhaps by increasing awareness of Europe’s need for technological resilience. Regardless of the reason, the momentum is difficult to ignore. Organisations that previously looked globally for every partnership are increasingly exploring opportunities closer to home.
For Swedish companies working within IoT, electronics, mobility and smart cities, this development creates opportunities that should not be overlooked. Internationalisation remains important, but it may no longer mean looking as far away as we once thought. Some of the most relevant markets, partners and innovation environments may already exist within a few hours of your hometown.