Market Trends of Middle East and Africa IT Services Industry
This section covers the major market trends shaping the MEA IT Services Market according to our research experts:
Growing Demand for Adoption of Advanced Technologies (Cloud Computing, Artificial Intelligence, and Internet of things (IoT))
- The IT services market is witnessing growth due to massive cloud deployments across end-user industries. For Instance, Oracle intends to open its first hyper-scale data center in Saudi Arabia. Oracle Cloud infrastructure is being used to build the new data center facility.
- Amazon Web Services (AWS) launched its new data center in Africa with its Amazon Web Services (AWS) cloud division, establishing three new availability zones in Cape Town, South Africa. The demand for cloud services is growing and thus creates new growth opportunities for the IT services market.
- The extensive use of digital payments and the introduction of advanced technologies such as AI, cloud computing, and blockchain technology are likely to drive the growth of the BFSI sector. For Instance, Barko, a microfinance company, intends to enter the South African retail banking industry with a new digital bank built on Temenos Transact and powered by The Temenos Banking Cloud.
- Cybersecurity incidents across the Middle East and Africa are rapidly growing toward digitalization and adopting digital solutions as part of IT operations. For instance, Phosphorus partnered with CyberKnight. This partnership aims to deliver a new generation of xIoT security solutions across the Middle East and Africa.
- According to Tractica, the artificial intelligence market revenue is expected to grow by USD 1,414.36 million by the end of 2025. The increasing adoption of AI technology across end-user industries is expected to grow significantly over the next five years. The demand for the IT services market would grow further.
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Saudi Arabia is Expected to Register Significant Market Growth During the Forecast Period
- The Saudi Arabia IT services market is expanding significantly. The increasing data center construction projects are boosting the IT service market demand. For Instance, Saudi Telecom Company (STC) plans to transfer its data centers, international submarine cables, and points of presence assets by investing USD 26.66 million.
- In the healthcare sector, increasing technological developments, such as the Internet of Things (IoT) and wearables, cloud services, product engineering services, integration services, data science, and business intelligence solutions, are expected to boost market growth. For instance, Tame has signed a 5-year deal with Huma for remote patient monitoring of the 34 million people living in the Kingdom of Saudi Arabia. The new health program will begin with support for patients with diabetes and cardiovascular disease.
- According to the Saudi Arabia Ministry of Communications and Information Technology (MCIT), the artificial intelligence (AI) market is expected to exceed USD 35 billion by 2030. The adoption of AI technology is also growing across its end-user industries such as Manufacturing, Government, BFSI, Healthcare, Retail & Consumer Goods, and Logistics, fueling the IT services market demand over the next five years.
- Further, according to the International Monetary Fund (IMF), Saudi Arabia's GDP is expected to grow by USD 27.95 Million in 2027. Such a huge rise in the GDP indicates that the country's revenue from different sectors is increasing, and the IT services market demand would significantly grow over the next five years.
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