Market Trends of Kazakhstan ICT Industry
Growing demand for Cloud Technology
- Kazakhstan's ICT market is witnessing notable expansion, propelled by a surge in the adoption of cloud technology. Businesses are pivoting towards cloud services and infrastructure, leveraging them to bolster their efficiency and scalability amidst the digital transformation era.
- Competition in the market is intense, driven by a mix of established and emerging players. These industry participants are deploying a range of strategies in order to enhance their competitive edge and fuel market growth. For instance, in April 2024, Yandex Cloud, a public cloud platform from the Russian Internet giant Yandex, unveiled its cloud services tailored for Central Asian users. This expansion was made feasible with the establishment of a new region, kz1, centered around a Data Processing Center (DPC) in Karaganda, Kazakhstan. Companies in the region can now leverage Yandex Cloud solutions for data storage, processing, AI technology, machine learning, and the development, testing, and launch of digital products.
- Kazakhstan is witnessing an increase in the overall adoption of internet connectivity, fueling the demand for cloud technology. This surge in connectivity not only broadens access to digital services but also escalates data generation. The increasing shift of businesses and individuals to online platforms is fueling a rising demand for data storage and management solutions that are scalable, efficient, and secure. Cloud technology, with its emphasis on flexibility, cost-efficiency, and enhanced performance, is adeptly meeting these requirements. This surge is vital in providing the necessary digital infrastructure to sustain the nation's burgeoning digital economy.
- According to the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan, in 2023, around 83,300 enterprises in Kazakhstan accessed the internet using wired fixed-line broadband connections. This accounted for about 69% of all internet-connected entities. In the same year, over 84% of private households in Kazakhstan opted for mobile internet access, while an additional 18,600 enterprises utilized mobile connections to access the internet.
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IT and Telecommunication Sector to Witness the Significant Adoption of Market
- Kazakhstan's IT and telecom sector is experiencing robust growth, propelled by the government's "Digital Kazakhstan" initiative. This initiative is pivotal in the nation's efforts to revamp its digital infrastructure and services. Moreover, rising internet penetration rates and enhanced mobile connectivity are broadening the populace's access to digital platforms.
- Technological advancements and innovation in the sector are being propelled by foreign investments and partnerships. Kazakhstan's tech sector benefits from a tech-savvy population and a robust IT talent pool nurtured by educational and training initiatives. Bolstered by enhanced regulatory frameworks and incentives, the nation is fast becoming a focal point for IT and telecom growth, attracting both startups and established firms.
- Moreover, the overall competition in the market is intense, driven by a mix of established and emerging players. These industry participants are deploying a range of strategies with the aim of enhancing their competitive edge and fueling market growth. In May 2024, Kazakhstan unveiled the eGov Mobile application, a digital identity initiative. The app, housing 33 essential documents such as the national ID card, driving license, and vaccination certificate, serves as a gateway to public services. Users can securely access the app using either a PIN code or the biometrics of their device.
- Kazakhstan's IT and telecom sector is witnessing substantial growth, propelled by the country's growing dependence on social media. This uptick in social media engagement is closely tied to a notable rise in data consumption, underscoring the urgent need for enhanced internet speeds and a resilient telecom infrastructure. According to StatCounter, from January to September 2023, YouTube dominated social media visits in Kazakhstan, capturing around 20% of the nation's total visits to such platforms. Pinterest secured the second spot, capturing close to 19% of all social media site visits across the country.
