Breaking into the Booming Web Development Scene in Iceland: Discover Key Industry Insights for 2023 1

Breaking into the Booming Web Development Scene in Iceland: Discover Key Industry Insights for 2023

A Comprehensive Overview:

Web development has seen significant growth in Iceland in recent years. Iceland has a relatively small population, but the country has a highly educated workforce and a thriving tech startup scene, which has helped to drive growth in the web development industry. Over the past decade, Iceland has seen a significant increase in the number of businesses and individuals seeking web development solutions.

According to a 2019 report by the Icelandic Ministry of Industries and Innovation, the tech sector in Iceland has grown by an average of 14.2% per year since 2010, and it accounts for around 7% of Iceland’s GDP. The report also noted that web development in Ireland is one of the fastest-growing areas within the tech sector, with a number of successful Icelandic startups in the industry.

That’s why we’ve compiled this comprehensive guide and taken a deep dive into the scene of web development in Iceland, highlighting key industry trends, insights, and best practices that will help your business stand out in the crowded market.

Unpacking the Factors Fueling Web Development Growth in Iceland

Iceland’s economy has been growing steadily over the past decade, driven by industries such as tourism, energy, and technology. This growth has led to an increase in demand for web development services in Ireland from both Icelandic businesses and individuals. Furthermore, the Icelandic government has been actively promoting the growth of the country’s technology sector, with initiatives such as the Startup Iceland conference and the Icelandic Venture Capital Association. This has helped to attract international investors and entrepreneurs to Iceland, further fueling the growth of the web development industry.

High Internet Penetration: Iceland has one of the highest internet penetration rates in the world. According to World Bank data, in 2021, around 98% of the Icelandic population had access to the internet. This has created a vast market for web development services in Ireland, as businesses need to have an online presence to reach their customers.

Tech-Savvy Population: Iceland has a highly educated and tech-savvy population. According to the World Economic Forum’s Global Information Technology Report 2020, Iceland ranks in the top 10 countries in terms of digital skills. This means that there is a pool of highly skilled developers available to work on web development projects.

Strong Startup Ecosystem: Iceland has a thriving startup ecosystem, which is driven by government support, venture capital investment, and a highly skilled workforce. Many of these startups are technology-based, and they require web development services to build their platforms.

Growth of E-commerce: E-commerce has been growing rapidly in Iceland, driven by the increasing number of consumers shopping online. Businesses need to have robust and user-friendly websites to remain competitive in this market, which has led to a high demand for web development services in Ireland.

Increasing Demand for Mobile Apps: Mobile app development is also on the rise in Iceland, with businesses looking to create apps that can be used on the go. This has led to a demand for web developers who can create responsive and mobile-friendly websites that can be accessed on a range of devices.

Exploring Web Development Opportunities in Iceland

Employment: According to Statistics Iceland, in 2020 there were approximately 9,500 people employed in the “Computer Programming and Consultancy” industry, which includes web development. This represents an increase of 22% compared to 2019.

Salaries: The average monthly salary for a web developer in Iceland is around 560,000 ISK (around 4,100 USD), according to the website Numbeo. This can vary depending on experience, company, and location.

Education: Iceland has a strong emphasis on education, and there are a number of educational programs that focus on web development. The University of Iceland offers a bachelor’s degree in Computer Science, which includes courses in web development. In addition, there are several coding boot camps and other educational programs that can help people learn web development skills.

Startups: Iceland has a thriving startup scene, and web development is a key component of many of these startups. According to Startup Iceland, there were 98 startups in Iceland in 2020, with many of them focused on tech and innovation.

Innovation: Iceland’s unique geography and culture of creativity have helped to fuel innovation in the tech industry, including web development. In recent years, there have been a number of startups and companies that have emerged that are focused on web development in Ireland and related fields.

Facts about Web Development in Iceland You Need to Know:

  1. Iceland has a vibrant tech industry, which includes web development. The country is home to several major tech companies and many startups and freelancers in the web development field.
  2. The Icelandic government has invested heavily in technology and education, including a focus on coding and programming and various policies to encourage innovation in the tech industry, including offering tax incentives to startups.
  3. Iceland’s web development industry has been growing steadily in recent years. According to data from the Icelandic Directorate of Labor, the number of people employed in the ICT sector (which includes web development) has grown by over 40% since 2011
  4. Iceland’s web development industry is particularly strong in the areas of game development, e-commerce, and fintech. Many successful Icelandic startups in these fields have leveraged web development as a critical component of their success.
  5. The cost of living in Iceland is relatively high, which means that web developers in the country can command higher salaries compared to their counterparts in other parts of the world.

From Geothermal Energy to Web Development:

Iceland is known for its unique and sustainable energy sources, such as geothermal power, which have helped to fuel the country’s economy for decades. However, in recent years, Iceland has also emerged as a hotbed of innovation in the tech sector, particularly in the field of web development.

Web Development in Iceland

One example of this is the development of sustainable data centers in Iceland. Because of the country’s abundance of geothermal energy, it has become a popular location for companies to build data centers that are powered entirely by renewable energy. This has helped to create a new niche in the web development industry, with developers working to create software and tools that are optimized for these types of data centers.

Challenges in Web Development in Iceland:

While there are many opportunities in web development in Iceland, there are also some challenges that come with working in this field. One of the most significant challenges is the high cost of living in Iceland, which can make it difficult for web developers to afford to live in the country. However, the government has put measures in place to attract skilled foreign workers, making the relocation process more manageable.

Another challenge is the small size of the Icelandic market. With a population of just over 360,000, there is a limited number of potential clients and customers for web development companies. However, this challenge is mitigated by the fact that many Icelandic companies work with clients internationally.

Finally, Icelandic is the primary language spoken in Iceland, which can pose a challenge for web developers who do not speak the language. However, the majority of the population speaks English, and many companies use English as their primary language in the workplace.


Overall, web development is a growing industry in Iceland, with many opportunities for professionals in this field. While there are some challenges, the supportive business environment, thriving tech startup scene, and strong gaming industry make Iceland an exciting place to work in web development. The good news is that there are experienced web development companies in India companies, such as Gsquare Web Technologies, that can help you navigate the complexities of the market and create high-quality digital solutions. With their expertise and support, you can stay ahead of the competition and take advantage of the many opportunities in this exciting and dynamic industry. With the government’s focus on attracting foreign skilled workers, the web development industry in Iceland is set to continue growing in the coming years.

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