GCC and Africa ICT Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 266.55 Billion |
| Market Size (2029) | USD 424.73 Billion |
| CAGR (2024 - 2029) | 9.77 % |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
GCC and Africa ICT Market Analysis
The GCC And Africa ICT Market size is estimated at USD 266.55 billion in 2024, and is expected to reach USD 424.73 billion by 2029, growing at a CAGR of 9.77% during the forecast period (2024-2029).
- In the GCC and Africa, businesses are embracing digital transformations to adapt to the evolving landscape and strengthen their resilience. This transition has spurred a growing demand for ICT solutions, especially those centered on automation, data analytics, and e-commerce. Furthermore, various governments are emphasizing robust policy frameworks to bolster the ICT and tech ecosystems. Coupled with numerous government initiatives promoting the adoption of digital tools and advanced technologies, this creates a fertile ground for the ICT market's growth in the GCC and Africa.
- The market's expansion is further fueled by the rising adoption of multi-cloud operations and an increasing demand for cloud-based intelligence services. Advanced AI technologies not only amplify the value of cloud computing but also enhance process viability, making them indispensable for integrating emerging technologies. In response to the surging demand, global cloud computing providers are setting up data centers and cloud regions in the GCC and Africa.
- As the tourism sector flourishes, there is a heightened demand for automation. From implementing smart ticketing systems at cultural events to offering automated services in tourist facilities, technology is being harnessed to boost efficiency and enrich visitors’ experiences. Moreover, automation is pivotal in handling the surging demand for services, ensuring a contemporary approach to hospitality and event management.
- PPP initiatives in the ICT market in the GCC and Africa are designed to cultivate collaboration between government entities and private organizations, aiming to bolster the region's digital infrastructure and technology adoption. Recognizing the pivotal role of ICT in economic development, GCC governments are increasingly aligning with private entities to pursue shared objectives. These collaborations span projects like broadband expansion, e-government services, smart city initiatives, and digital innovation.
- Countries in the GCC and Africa grapple with significant economic consequences due to their heavy reliance on external sources, which, in turn, affects security and technological expertise. Africa is notably challenged by a digital skills gap and ongoing gender disparities. Furthermore, limited technology adoption by firms constrains productivity and stifles job creation, particularly in skill-intensive sectors.
- In the aftermath of the COVID-19 pandemic, several regional government initiatives are propelling the market forward. For example, the UAE AI Strategy 2031 was unveiled to boost productivity across sectors like healthcare, transport, renewable energy, and education, aligning with the government's vision for the United Arab Emirates’ centennial in 2071. The United Arab Emirates has already initiated AI integration in sectors such as healthcare, education, and aviation. Central to the government's ambitious economic diversification and knowledge economy goals is the pivotal role of AI.
GCC and Africa ICT Market Trends
Mobility and Telecom to be the Largest Technology Segment
- The United Arab Emirates is recognized as the fourth country globally to roll out a 5G network. Leading telecom operators Du and Etisalat introduced limited 5G services and unveiled the 5G-capable ZTE Axon 10 Pro smartphone, available to both prepaid and postpaid customers. Given the United Arab Emirates’ robust GDP per capita and its status as a tech leader, the demand for 5G services is set to rise in the coming years.
- The swift adoption of 5G in the GCC is fueling the region's telecom sector's demand for ICT solutions. Transitioning communication from traditional voice and SMS to video, 5G technology has been embraced early on by GCC nations. With its cutting-edge technologies and solutions, tech behemoth Huawei has cemented its status as a go-to partner in the region. Moreover, GCC operators have incorporated 5G fixed wireless access (FWA) into their commercial services.
- In a bid to enhance 5G connectivity in the GCC and Africa, market players are forming strategic alliances. A notable move came in August 2024, when Liquid Intelligent Technologies, a key player in the Cassava Technologies group, teamed up with Globalstar, a US-based connectivity pioneer. Their joint effort is set to introduce sophisticated 5G solutions across Africa, the Middle East, and the Gulf.
- As 5G services roll out and smart cities evolve, a surge in data traffic is expected, leading to a heightened demand for data centers. This trend bodes well for the ICT market's expansion in the GCC and Africa. According to projections from Ericsson, 5G mobile subscriptions in the MENA region are set to skyrocket from 24 million in 2022 to a staggering 270 million by 2028.
- With the rising adoption of smartphones and 5G, the segment is poised for significant growth. The telecommunications landscape in the GCC and Africa is vibrant, featuring active internet service providers (ISPs), multiple sub-ISPs, mobile operators, and other licensed entities. As Telcos introduce innovative products and services for both consumers and businesses and engage in partnerships to amplify 5G adoption, the market is expected to continue to flourish.
South Africa is Expected to Hold a Significant Market Share
- South Africa is witnessing a swift surge in demand for hardware, software, and services. This growth is primarily driven by an increasing appetite for digital solutions, proactive government initiatives aimed at digital transformation in both private and public sectors, and strengthening partnerships among market vendors to enhance ICT solutions nationwide.
- In a notable move, MTN South Africa teamed up with Eseye, a global leader in Internet of Things (IoT) services, in September 2023. This collaboration aimed to bolster IoT capabilities across Africa. The partnership details the introduction of Eseye's IoT solutions in South Africa, with aspirations to roll out the technology to 18 MTN affiliates across the continent. Central to this collaboration is the melding of Eseye's solutions with MTN's current infrastructure, leveraging Eseye's prowess in IoT development and execution.
- Moreover, South African businesses and governmental bodies are ramping up investments in digital transformation. They are turning to technologies like cloud computing, big data analytics, and IoT, all in a bid to boost efficiency, productivity, and customer service. This digital pivot is propelling the growth of the nation's ICT market. In a testament to this trend, in March 2024, Oppo spotlighted its commitment to the IoT ecosystem for its product offerings in South Africa, aiming to bolster regional connectivity and innovation.
- Furthermore, as per the data published by ITU in April 2024, South Africa has achieved the 100 million mark for the number of mobile cellular subscriptions by 2021, and the country has been maintaining the trend since. The continued maintenance of this trend is expected to drive the market studied.
- On the policy front, the South African government is charting a course to transition all its IT services to the cloud. This strategic move seeks to promote seamless interaction among government departments and elevate digital services for citizens. Such policy initiatives are seen as catalysts for cloud computing adoption in the nation, further energizing the ICT market.
- In line with these efforts, the Department of Communications and Digital Technologies rolled out the National Data and Cloud Policy (GG No. 50741) on May 31, 2024. This was done in accordance with section 3(1) of the Electronic Communications Act, 2005. The newly minted Policy underscores the pivotal role of data and cloud technologies in propelling South Africa's socio-economic progress, enhancing government service delivery, and fueling the nation's digital economic ascent.
GCC and Africa ICT Industry Overview
The ICT market in the GCC and Africa is highly fragmented with the presence of major players like Google LLC (Alphabet Inc.), IBM Corporation, Microsoft Corporation, HP Inc., and SAP SE. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- November 2023: Google Cloud inaugurated a new cloud region in Dammam, delivering high-performance, low-latency services to a diverse clientele in Saudi Arabia and the broader Middle East. This clientele ranges from public sector entities and large corporations to SMEs and startups. This move underscored Google's expanding footprint in the Middle East's tech landscape and aligns with its commitment to Saudi Arabia's Vision 2030 objectives.
- November 2023: STC Group, a major player in Saudi Arabia and primarily owned by the Public Investment Fund, announced an expanded strategic partnership with global tech leader Microsoft. Together, they aim to drive innovation across the Kingdom by deploying advanced technological solutions, furthering the digital transformation of various industries in Saudi Arabia.
GCC And Africa ICT Market Leaders
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Google LLC (Alphabet Inc.)
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IBM Corporation
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Microsoft Corporation
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HP Inc.
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SAP SE
*Disclaimer: Major Players sorted in no particular order
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GCC And Africa ICT Market News
- August 2024: Liquid Intelligent Technologies (Liquid), a key player in the technology landscape and a subsidiary of Cassava Technologies, forged a strategic alliance with Globalstar, a US-based connectivity pioneer. Together, they are set to introduce cutting-edge 5G solutions across Africa, the Middle East, and the Gulf.
- November 2023: The Sharjah Electricity, Water, and Gas Authority (SEWA) announced its successful digital overhaul, a feat achieved in collaboration with SAP SE, a global tech leader. Leveraging SAP's extensive suite—from HR management and enterprise resource planning (ERP) to tailored industry applications—SEWA is poised to streamline its operations, enhance visibility and efficiency, and elevate services for customers, employees, and partners alike.
GCC And Africa ICT Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Market Drivers
5.1.1 Ongoing Events and Tourism Demanding Automation
5.1.2 Government Policies and PPP Initiatives
5.1.3 Rising Digital Transformation in the Industries
5.2 Market Restraints
5.2.1 High Dependence on External Sources to Balance the Skill Deficit
5.2.2 Heavy Dependence on the Oil and Gas Sector
5.3 Key Use Cases
5.4 Government Projects and Initiatives
5.5 Ecosystem Analysis
6. MARKET SEGMENTATION
6.1 By Technology
6.1.1 Big Data Analytics
6.1.2 Mobility and Telecom
6.1.3 Cloud Computing
6.1.4 Storage
6.1.5 Business Process Outsourcing
6.1.6 Other Technologies
6.2 By Component
6.2.1 Hardware/Devices
6.2.2 Software and Services
6.2.3 Communication and Connectivity
6.3 By End-user Industry
6.3.1 Oil, Gas, and Utilities
6.3.2 Travel and Hospitality
6.3.3 Healthcare
6.3.4 Financial Services
6.3.5 Manufacturing and Construction
6.3.6 Other End-user Industries
6.4 By Country***
6.4.1 Saudi Arabia
6.4.2 United Arab Emirates
6.4.3 Qatar
6.4.4 Oman
6.4.5 Kuwait
6.4.6 Bahrain
6.4.7 Egypt
6.4.8 South Africa
6.4.9 Nigeria
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Google LLC (Alphabet Inc.)
7.1.2 IBM Corporation
7.1.3 Microsoft Corporation
7.1.4 HP Inc.
7.1.5 SAP SE
7.1.6 Etisalat (Emirates Telecommunication Group Company PJSC)
7.1.7 Oracle Corporation
7.1.8 Salesforce Inc.
7.1.9 Accenture PLC
7.1.10 Amazon Web Services Inc. (AWS)
7.1.11 Cisco Systems Inc.
7.1.12 Huawei Investment & Holding Co. Ltd
7.1.13 Wipro Limited
7.1.14 Tata Consultancy Services Limited
7.1.15 Gijima Group Pty Ltd
8. INVESTMENT ANALYSIS
GCC and Africa ICT Industry Segmentation
The ICT market in the GCC and Africa is defined based on the revenues generated from the integration and adoption of different information and communications technologies (ICT), such as big data, mobility, storage, outsourcing, and cloud computing, among others, in various end-user industries across the GCC and Africa. The analysis is based on the market insights captured through secondary research and primaries. The study also covers the major factors impacting the growth of the market in terms of drivers and restraints.
The ICT market in the GCC and Africa is segmented by technology (big data analytics, mobility and telecom, cloud computing, storage, business process outsourcing, other technologies), component (hardware/devices, software and services, communication and connectivity), end-user industry (oil, gas, and utilities, travel and hospitality, healthcare, financial services, manufacturing and construction, other end-user industries), and region/country (GCC [Saudi Arabia, United Arab Emirates, Qatar, Oman, Kuwait, Bahrain], Africa [Egypt, South Africa, Nigeria, Rest of Africa]). The report offers the market forecasts and size in value terms in USD for all the above segments.
| Market Drivers | |
| Ongoing Events and Tourism Demanding Automation | |
| Government Policies and PPP Initiatives | |
| Rising Digital Transformation in the Industries |
| Market Restraints | |
| High Dependence on External Sources to Balance the Skill Deficit | |
| Heavy Dependence on the Oil and Gas Sector |
GCC And Africa ICT Market Research FAQs
How big is the GCC And Africa ICT Market?
The GCC And Africa ICT Market size is expected to reach USD 266.55 billion in 2024 and grow at a CAGR of 9.77% to reach USD 424.73 billion by 2029.
What is the current GCC And Africa ICT Market size?
In 2024, the GCC And Africa ICT Market size is expected to reach USD 266.55 billion.
Who are the key players in GCC And Africa ICT Market?
Google LLC (Alphabet Inc.), IBM Corporation, Microsoft Corporation, HP Inc. and SAP SE are the major companies operating in the GCC And Africa ICT Market.
What years does this GCC And Africa ICT Market cover, and what was the market size in 2023?
In 2023, the GCC And Africa ICT Market size was estimated at USD 240.51 billion. The report covers the GCC And Africa ICT Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the GCC And Africa ICT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC And Africa ICT Industry Report
Statistics for the 2024 GCC And Africa ICT market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC And Africa ICT analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
