Cyprus ICT Market Size (2024 - 2029)

Cyprus ICT Market Analysis

The Cyprus ICT Market size is estimated at USD 0.89 billion in 2024, and is expected to reach USD 1.01 billion by 2029, growing at a CAGR of 2.29% during the forecast period (2024-2029).

Cyprus's market is witnessing significant growth, propelled by a rising focus on digital technology, cyber security, artificial intelligence, robotics, and healthcare IT. Cyprus's robust research infrastructure and tech-savvy, solution-oriented customer base position it as a strategic hub for various ICT activities.

• The ICT market in Cyprus is witnessing robust growth, propelled by the government's strategic initiatives to cultivate a digital economy and a robust regulatory framework that bolsters foreign investments. Additionally, Cyprus benefits from advanced telecommunications infrastructure and high internet penetration rates, further strengthening its ICT sector.
• Cyprus's strategic location positions it as a pivotal gateway linking Europe, the Middle East, and Africa, making it a desirable hub for global companies. The rising call for digital transformation, notably in finance, tourism, and education, is a key driver fuelling the growth of the ICT sector. Bolstering this growth are Cyprus's skilled workforce and a burgeoning start-up ecosystem.
• In November 2023, the Central Bank of Cyprus (CBC) modernized its banking sector significantly by awarding a tender to a joint venture between Infocredit Group and Aqubix. The initiative seeks to revolutionize Cyprus's digital onboarding process by leveraging the KYC Portal CLM. This product is tailored to efficiently onboard new customers and update existing data for credit institutions. This platform enables new and existing customers of credit institutions to verify and authenticate their details, meeting regulatory requirements, all remotely, eliminating the need for in-person bank visits. This advancement significantly streamlines account opening, ensuring a secure, swift, and efficient onboarding process.
• High internet penetration and digital literacy rates among Cyprus's population are fuelling a surge in demand for IT services. According to Eurostat, in 2023, the total share of urban households with internet access in Cyprus was around 92.17 percent. In contrast, it was around 84.64 percent in 2017, highlighting a notable increase in the proportion of urban households in Cyprus that have internet access.
• Increasing internet usage drives growth in the Cyprus ICT market, spurring demand for digital services and products. This surge in connectivity is not only boosting the adoption of cloud computing, e-commerce, and digital communication tools but also propelling progress in IoT, AI, and cybersecurity, meeting the rising need for diverse online solutions.
• However, concerns related to privacy as well as data security, coupled with the substantial CAPEX demands of advanced telecom infrastructure, are poised to impede market growth throughout the forecast period.

Cyprus ICT Industry Segmentation

ICT, an umbrella term encompassing Information Technology (IT), covers a wide array of communication technologies. These include wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and various media applications. Collectively, these technologies empower users to store, access, transmit, retrieve, and manipulate information in digital formats.

Cyprus ICT market is segmented by type (hardware, software, services, and telecommunication services), size of enterprise (small and medium enterprises, and large enterprises), and industry vertical (BFSI, IT and telecom, government, retail and e-commerce, manufacturing, energy and utilities, and other industry verticals).

The market sizes and forecasts are provided for a value of USD billion for all the above segments.