Market Trends of Cyprus ICT Industry
Growing demand for Cloud Technology
- Cyprus's ICT market is witnessing robust growth, propelled by a notable uptick in the adoption of cloud technology. Businesses are pivoting towards cloud services and infrastructure, bolstering their efficiency and scalability in the era of digital transformation.
- Moreover, Cyprus's focus on cybersecurity and data protection is fueling investments in cloud technologies. This emphasis is luring in a mix of local and global players, spurring market growth. By prioritizing security, Cyprus isn't just fostering innovation but also paving the way for novel applications and services.
- In August 2023, Kyndryl, an IT infrastructure services provider, and CNP Cyprus, an insurance group in Cyprus, renewed their agreement for another five years. Under this agreement, Kyndryl will transition CNP Cyprus' current IT infrastructure to a hybrid cloud setup. This move is aimed at bolstering CNP Cyprus' IT modernization initiatives, with a focus on elevating both customer and employee experiences, fortifying security measures, and ensuring operational resilience.
- Moreover, with a surge in internet-connected households, the country is witnessing a surge in the demand for cloud technology. As households increasingly adopt multiple devices, cloud solutions become pivotal, providing scalable storage and computing power. Consequently, this facilitates smooth data synchronization, bolstering the remote work trend. The growing demand for cloud technology is also propelling the adoption of cloud-based services, such as streaming, online gaming, and smart home technologies, all of which heavily rely on robust cloud infrastructures.
- According to Eurostat, in 2023, the percentage of Cyprus households with internet access held steady at around 92.3%, whereas in 2022, the total share of households with internet access in Cyprus was 79.41%. The growing number of households in the country gaining internet access is set to significantly enhance market growth prospects.
Understand The Key Trends Shaping This Market
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IT and Telecommunication Sector to Witness the Significant Adoption of Market
- Cyprus's IT and telecom sector is experiencing notable growth, propelled by the widespread adoption of technology. The country's economy and government are actively promoting digitalization, as seen in their investments in digital infrastructures, devices, software, and services. This transition to digitalization has not only enhanced user experiences but has also opened up avenues for fresh business prospects.
- Moreover, the market is fueled by an increasing demand for IT and telecom services, pivotal in the nation's digital transformation. The rapid expansion of high-speed internet, alongside the widespread adoption of 5G networks, has bolstered connectivity. This, in turn, has accelerated the adoption of cloud computing, IoT, and remote work solutions. According to Eurostat, in 2023, the percentage of suburban households in Cyprus with internet access rose by 2.8 percentage points, marking a 3.02% increase from 2022. By the end of 2023, the penetration of internet access in suburban households reached 95.37%.
- In June 2023, the Digital Security Authority (DSA) of Cyprus announced that Cyprus and Serbia had signed a Memorandum of Understanding (MoU) primarily aiming at electronic communications and cybersecurity. The DSA highlighted that the MoU's primary goals are to elevate expertise and information exchange in electronic communications and postal services, bolster cybersecurity, and foster effective cooperation in these realms.
- In Cyprus, the IT and telecom sector is witnessing substantial growth, propelled by the country's escalating engagement with social media. This surge in social media activity is directly correlating with a marked uptick in data consumption, underscoring the need for enhanced internet speeds and resilient telecom infrastructure. According to StatCounter, as of May 2024, around 72.45% of the Cyprus population used Facebook, whereas, in October 2023, around 69.01% of the Cyprus population used Facebook.
