Bahrain ICT Market Size (2024 - 2029)

Bahrain ICT Market Analysis

Bahrain's ICT Market is expected to grow at a CAGR of 6.7% over the next five years. Increasing emphasis on digital technology, cyber security, artificial intelligence, robotics, healthcare, and IT drives the market's growth.

• The ICT sector includes both the IT and Telecom markets. IT investments are growing, and the ICT market demand is expected to grow significantly over the next five years. The increasing need to explore and adopt digital technologies and initiatives, the increase in the overall digitalization demand and scalable IT infrastructure, the wide 5G network adoption, and the rising penetration of technology investments are significantly boosting the ICT market's growth. Although information and communication technology (ICT) is everywhere, it plays a significant role in the Country's economic development.
• The government took initiatives to develop the ICT industry, which will drive new growth opportunities for the ICT market. For instance, Bahrain's Education Minister signed an education agreement between the Ministry and Microsoft on the sidelines of his participation in the Global Education and Skills (GESS) Forum held in Dubai, UAE. The agreement aims to develop students' and teachers' skills using information communication technology.
• According to ITU ICT Development Index (IDI), Bahrain ranked first in the Arab region for several consecutive years. It continues to be a regional ICT leader offering the most competitive and affordable ICT services, with 30-40% operational savings compared to nearby countries. Additionally, being the first Country in the GCC to deregulate its Telecommunication sector, adopt a CloudFirst Policy nationwide, and a plan to reach net zero carbon emissions by 2060. Such government initiatives will bring new growth opportunities for the Bahrain ICT market.
• According to the IMF (International Monetary Fund), Bahrain's GDP is expected to grow by USD 53.14 billion by 2027. The county's GDP is growing significantly with increasing IT investments that would create new growth opportunities for the Bahrain ICT market.
• According to ITU (International Telecommunication Union), internet penetration in Bahrain is expected to grow steadily from 2022 to 2026. As per the research, the Country's internet penetration increased from 98.6% in 2022. Also, Bahrain's internet penetration is expected to grow by 99.5% by 2026. The growing internet penetration will drive new growth opportunities for the Bahrain ICT market.
• The COVID-19 pandemic significantly impacted the Country's information technology and telecommunication industry and other facets of daily life. A large portion of the Country's population was forced to spend constant time at home due to the pandemic, which increased remote jobs, telemedicine, online education, and streaming in-home entertainment. The high demand for mobile and residential broadband access boosted the telecommunication sector.

Bahrain ICT Industry Segmentation

Bahrain's ICT market includes deep analysis of critical technology investments such as cloud technologies and artificial intelligence.

Bahrain ICT Market is Segmented by type (hardware, software, IT services, telecommunication services), by the size of the enterprise (small and medium enterprises, large enterprises), by end-user vertical (BFSI, IT & Telecom, government, retail, and E-Commerce, manufacturing, energy, and utilities, and other industry verticals).

The market sizes and forecasts are in terms of value (USD million) for all the above segments.