Egypt ICT Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 20.07 Billion |
| Market Size (2029) | USD 45.18 Billion |
| CAGR (2024 - 2029) | 17.61 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Egypt ICT Market Analysis
The Egypt ICT Market size is estimated at USD 20.07 billion in 2024, and is expected to reach USD 45.18 billion by 2029, growing at a CAGR of 17.61% during the forecast period (2024-2029).
- The surge in internet penetration and smartphone adoption is fueling the demand for digital services. Egyptians are coming online and embracing smartphones, catalyzing expansions in e-commerce, fintech, and digital entertainment.
- Government initiatives are a cornerstone of the Egyptian ICT market’s growth. Spearheaded by initiatives such as the Digital Egypt Strategy and Egypt Vision 2030, the focus is on bolstering digital infrastructure, nurturing innovation, and elevating digital literacy. Notably, Egypt is making substantial investments in its telecommunications infrastructure, with a notable shift toward expanding 4G coverage and introducing 5G networks.
- Also, the tech startup ecosystem's expansion is a pivotal factor. Egypt has emerged as a thriving center for tech startups, buoyed by a rising count of incubators, accelerators, and venture capital investments. This vibrant ecosystem not only nurtures innovation but also cultivates a rich soil for ICT progress.
- Foreign direct investments (FDI) in the Egyptian ICT market are bolstering growth. The nation's strategic location, skilled workforce, and favorable investment climate are drawing in international corporations. Furthermore, educational and workforce development programs are honing the ICT skills of the younger generation, guaranteeing a continuous talent pipeline to match the market’s expanding needs.
- In September 2023, Huawei Technologies, a significant provider of information and communications technology solutions, collaborated with the National Council for Women (NCW) to introduce the "Women in Technology" initiative. This initiative is designed to bolster and empower Egyptian women and girls, fostering their participation in the information and communications technology (ICT) industry.
- Also, in July 2023, in Cairo's Smart Village, the United Nations Development Programme (UNDP) and Egypt's Information Technology Industry Development Agency (ITIDA), an affiliate of the Ministry of Communications and Information Technology, signed a pivotal project agreement. This five-year initiative aims to infuse Egypt's tech industry with both financial backing and mentorship, offering its innovators and entrepreneurs a pathway to pioneering advancements.
- However, the ICT market in Egypt faces impediments to its growth, including inadequate rural infrastructure, regulatory obstacles, and rising cybersecurity risks. Moreover, political volatility and economic fluctuations further compound challenges, casting uncertainty over continued investments and advancements in the ICT industry.
Egypt ICT Market Trends
IT and Telecom Segment Registering Significant Market Growth
- The growth of the IT and telecom segment is a major driver of the ICT market’s expansion in Egypt. The telecom industry, in particular, plays a pivotal role by laying the groundwork for ICT advancements. Notably, with considerable investments directed toward bolstering 4G networks and rolling out 5G technology, telecom firms are notably elevating internet access and speed nationwide. This heightened connectivity not only spurs the adoption of digital services but also catalyzes growth in key ICT domains like e-commerce, fintech, and digital entertainment.
- The Egyptian government, with initiatives such as the Digital Egypt Strategy, is actively fostering an environment conducive to the growth of the IT and telecom segment. By prioritizing digital literacy and enhancing ICT skills among the populace, Egypt is cultivating a skilled workforce to bolster these industries.
- Egyptian IT firms are bolstering their capabilities by collaborating with global tech giants, focusing on software development, data analytics, and cloud services. Such strategic partnerships not only foster knowledge exchange but also grant them access to state-of-the-art technologies. Consequently, these collaborations empower local businesses, enhancing their innovation and global competitiveness.
- In May 2024, Egypt inaugurated its largest data and cloud computing center (P1) on the Ain Sokhna highway, solidifying its position as a leading hub for advanced data analytics and artificial intelligence (AI) in Egypt and the broader North African region.
- In May 2024, Huawei marked a significant milestone by inaugurating its cloud region in Egypt, becoming the pioneer in introducing a public cloud service to the region. This strategic move positions the Cairo region as the focal point for Huawei Cloud's advanced features, catering specifically to nations across northern Africa. Huawei Cloud also unveiled its latest Arabic Large Language Model (LLM), a pivotal move aimed at bolstering regional enterprises in their digital transformation across verticals.
Increasing Demand for Digitalization and Scalable IT Infrastructure
- The Egyptian ICT market is witnessing a notable upsurge, propelled by rising demand for digitization and scalable IT infrastructure. Both businesses and government bodies are prioritizing digital transformation to modernize their operations, driven by the goals of increased efficiency, cost reduction, and superior service delivery.
- Companies are increasingly investing in advanced IT infrastructure, driven by digitization initiatives. This includes cloud computing, big data analytics, and cybersecurity solutions. The aim is to enhance operational efficiency, bolster data management, and fortify security measures. Notably, the transition to cloud services stands out for its scalability, offering businesses flexibility and diminishing the necessity for large initial investments in physical infrastructure.
- The Egyptian government's dedication to digital transformation, as articulated in Vision 2030 and the Digital Egypt Strategy, is driving this momentum. Initiatives like e-government services, smart cities, and digital healthcare systems in the public sector are fueling a growing need for advanced ICT solutions. Also, the rise of the tech startup ecosystem in Egypt underscores the nation's expanding digital economy. These startups harness scalable IT infrastructure to pioneer and introduce new digital offerings, bolstering the growth of the ICT market.
- In June 2024, the Egypt Health Care Authority unveiled strategic collaborations with global partners to drive the mechanization and digital overhaul of service delivery and revenue management across its healthcare facilities.
- Also, in December 2023, Siemens Digital Industries Software and Egypt's Ministry of Communications and Information Technology, which is represented by the Information Technology Industry Development Agency (ITIDA), signed a MoU (Memorandum of Understanding). ITIDA, acting as the executive IT entity under MCIT and a focal point for international IT and business investors, facilitated the agreement. Partnering with ITIDA represents a significant move aimed at bolstering its research and development efforts in Egypt, fostering local talent, and driving technological innovation.
Egypt ICT Industry Overview
The Egyptian ICT market is characterized by fragmentation, with numerous players vying for market share. Key players in this market are actively pursuing advancements. Notably, some leading firms are forging collaborations and extending their reach into emerging markets, aiming to solidify their standing. Among the notable players are Amazon, Microsoft, SAP Egypt LLC, Telecom Egypt, and Etisalat Egypt SAE.
- July 2024: Egypt's Information Technology Industry Development Agency (ITIDA), in partnership with Telecom Egypt and Nokia, a global provider of cell phone technology, signed a Memorandum of Understanding (MoU). The MoU aims to bolster Nokia's footprint in Egypt by bolstering its innovation and export services. Central to this agreement is the creation of an IP Excellence Centre, a move that solidifies Egypt's position as an IT services hub.
- March 2024: Tejas Networks announced a Memorandum of Understanding (MoU) signing with Telecom Egypt (TE), ITIDA, and NTI to bring its expertise from executing the Bharatnet and NKN projects in India to Egypt. Further areas of collaboration encompass training Egyptian engineers and technicians in advanced telecom and networking technologies, creating local production and research centers for fiber-to-the-home (FTTH) products, and initiating technical support services in Egypt.
Egypt ICT Market Leaders
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Microsoft
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SAP Egypt LLC
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Vodafone Egypt
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Orange Egypt
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Telecom Egypt
*Disclaimer: Major Players sorted in no particular order
Egypt ICT Market News
- June 2024: In Cairo, the Information Technology Industry Development Agency (ITIDA) spearheaded the Egyptian-Hungarian Business Forum. The event witnessed the convergence of 19 top Egyptian ICT companies, 13 Hungarian firms, and key Hungarian academic institutions. The forum primarily sought to bolster cooperation and partnerships in the ICT market by paving the way for significant bilateral initiatives and investment opportunities.
- February 2024: Backed by GIZ Egypt, members of the ICT Cluster signed a partnership deal, founding Egypt4Industry. This association is set on spearheading the adoption of Industry 4.0 solutions in Egypt's manufacturing industry, with ambitions stretching across the Middle East, Africa, and Europe. The pact signifies a crucial step in Egypt's tech evolution and economic upliftment.
Egypt ICT Market Report - Table of Contents
1. INTRODUCTION
1.1 Market Definition and Scope
1.2 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Government Initiatives for Rapid Digital Transformation
5.1.2 Increase in ICT Exports Boosting the Market
5.2 Market Restrain
5.2.1 Cyberattacks Disrupting the ICT Infrastructure
5.3 Impact of COVID-19 on IT Spending
6. KEY TECHNOLOGY INVESTMENTS
6.1 Cloud Technology
6.2 Artificial Intelligence
6.3 Cyber Security
6.4 Digital Services
7. MARKET SEGMENTATION
7.1 By Type
7.1.1 Hardware
7.1.2 Software
7.1.3 IT Services
7.1.4 Telecommunication Services
7.2 By Size of Enterprise
7.2.1 Small and Medium Enterprises
7.2.2 Large Enterprises
7.3 By Industry Vertical
7.3.1 BFSI
7.3.2 IT and Telecom
7.3.3 Government
7.3.4 Retail and E-commerce
7.3.5 Manufacturing
7.3.6 Energy and Utilities
7.3.7 Other Industry Verticals
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Amazon
8.1.2 Microsoft
8.1.3 IBM Corporation
8.1.4 Accenture
8.1.5 Atos
8.1.6 SAP Egypt LLC
8.1.7 Dell Inc.
8.1.8 Oracle Systems Corporation
8.1.9 Ericsson
8.1.10 Telecom Egypt
8.1.11 Orange Egypt
8.1.12 Vodafone Egypt
8.1.13 Etisalat Egypt SAE
8.1.14 OSN
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Egypt ICT Industry Segmentation
Information and communication technologies (ICT) encompass a wide array of communication technologies, including the internet, computers, wireless networks, software, cell phones, videoconferencing, middleware, social networking, and various media applications. These technologies empower users to store, access, transmit, retrieve, and manipulate information digitally.
The Egyptian ICT market is segmented by type (hardware, software, IT 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 in value terms (USD) for all the above segments.
| By Type | |
| Hardware | |
| Software | |
| IT Services | |
| Telecommunication Services |
| By Size of Enterprise | |
| Small and Medium Enterprises | |
| Large Enterprises |
| By Industry Vertical | |
| BFSI | |
| IT and Telecom | |
| Government | |
| Retail and E-commerce | |
| Manufacturing | |
| Energy and Utilities | |
| Other Industry Verticals |
Egypt ICT Market Research FAQs
How big is the Egypt ICT Market?
The Egypt ICT Market size is expected to reach USD 20.07 billion in 2024 and grow at a CAGR of 17.61% to reach USD 45.18 billion by 2029.
What is the current Egypt ICT Market size?
In 2024, the Egypt ICT Market size is expected to reach USD 20.07 billion.
Who are the key players in Egypt ICT Market?
Microsoft, SAP Egypt LLC, Vodafone Egypt, Orange Egypt and Telecom Egypt are the major companies operating in the Egypt ICT Market.
What years does this Egypt ICT Market cover, and what was the market size in 2023?
In 2023, the Egypt ICT Market size was estimated at USD 16.54 billion. The report covers the Egypt ICT Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Egypt ICT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major challenges faced by the Egypt's ICT Market?
Major challenges faced by the Egypt's ICT Market a) Include regulatory issues b) Cybersecurity threats c) Need for skilled ICT professionals
What are the major challenges faced by the Egypt's ICT Market?
Major challenges faced by the Egypt's ICT Market a) Include regulatory issues b) Cybersecurity threats c) Need for skilled ICT professionals
Egypt ICT Industry Report
The ICT sector in Egypt, a cornerstone of the nation's economic landscape, is experiencing significant growth, driven by a diverse range of technologies and services such as telecommunications, software development, IT services, e-commerce, and fintech. These advancements are enhancing communication, information sharing, and digital transformation across various industries. Supported by government initiatives to improve internet infrastructure, promote digital literacy, and foster local startups, the sector is thriving. Egypt's strategic location and skilled workforce further establish it as a prime hub for outsourcing and IT services. Key market segments like mobile internet services, e-commerce, and fintech are rapidly expanding, fueled by a tech-savvy population and a growing digital consumer base. Despite facing challenges such as infrastructure gaps and the need for better cybersecurity, the ICT sector in Egypt is set for continued growth, offering numerous opportunities for innovation. For detailed statistics on market share, size, and revenue growth rates, access a free report PDF download from Mordor Intelligence™ Industry Reports, providing a comprehensive market forecast and historical overview of Egypt's ICT sector.
