What are the Five Key Growth Opportunities in the Middle East ICT Market?

What are the Five Key Growth Opportunities in the Middle East ICT Market_

As a means of reducing dependency on oil, several Middle Eastern countries are devising strategies to boost the contribution of Information and Communications Technologies (ICT) to gross domestic product (GDP).

According to Frost & Sullivan’s recent analysis, Innovation Business Model Spur Growth of Middle East ICT Market, Outlook 2021 — the governments’ digital transformation initiatives and the adoption of disruptive technologies accelerate the Middle East ICT market’s growth. And it is expected to reach $95.05 billion by 2025 from $84.23 billion in 2020 at a compound annual growth rate (CAGR) of 2.4 per cent. 

The Frost & Sullivan researcher Shibapriya Saha stated that “Rising demand for technologies like artificial intelligence (AI), machine learning (ML) and internet of things (IoT) will drive market growth. In the future, 5G will be used for eGovernance, next-generation healthcare, smart cities, smart mobility, and smart tourism.”

Taking into account enterprises’ shifting to a cloud-based model, Saha asserted that the Middle East will be one of the best markets for cloud and data centre providers. Technology convergence is redefining organisational boundaries, and the focus is on developing innovative, cross-industry business models, such as FinTech (financial services), EdTech (education), and MarTech (marketing).

Also Read: IoT in the Middle East: Embracing the Technology

  • 5G: 5G networks’ ability to provide massive machine-type communication will accelerate its adoption in the GCC IoT/M2M (machine to machine) industry and will support use cases such as connected cars, grid management, fleet management, utility meter reading, and track-and-trace systems for logistics.
  • IoT: The adoption of IoT will primarily be driven by the manufacturing and industrial sectors as they look toward adopting and implementing concepts such as Industry 4.0 and predictive maintenance.
  • AI: Banking, retail, and healthcare are expected to be the forerunners in the large-scale adoption of AI in the Middle East. These are labour-intensive sectors and will provide immense scope for industrial automation.
  • Cybersecurity: Business risks associated with cyber-attacks and the consequent negative impact on enterprises’ brand value and perception will drive future cybersecurity investment in the Middle East.
  • Gaming and eSports: The growing consumer appetite for on-the-go gaming and the surge in in-app microtransactions will support the development and the transformation of the eSports and gaming industry in the region.