Market Trends of Myanmar ICT Industry
This section covers the major market trends shaping the Myanmar ICT Market according to our research experts:
Growing demand for Cloud Technology
- Myanmar's ICT industry is driven by the significant increase in private and state investment, rising consumer spending, and increasing demand for cloud services. For Instance, Huawei collaborated with Ooredoo Myanmar, one of the country's leading telecommunications providers, to offer its optical character recognition (OCR) cloud service.
- The need for greater agility and flexibility in the IT infrastructure drives the need to adopt cloud technology. For instance, Frontiir, Myanmar's leading internet service provider under the Myanmar Net brand, announced the acquisition of Termaxia and its cloud storage technology.
- Key players in the ICT market upgrade their existing technology with cloud computing solutions primarily drives the market growth. For Instance, Whale Cloud partnered with Whale Cloud. Through this partnership, Whale Cloud's Digital BSS capabilities enable Ooredoo Myanmar to deliver innovative digital services.
- Furthermore, the increasing investments by the government in promoting the development of numerous technologies, such as 5G, AI, IoT, machine learning, Big Data, etc. Additionally, the emergence of digital transformation is expected to drive the Myanmar ICT market growth.
- Globalization in this region and the growing need for adopting advanced technologies such as Cloud, IoT, and artificial intelligence are boosting the market's growth. According to the IMF, Myanmar's GDP will be USD 79.40 Billion by 2027. It indicates that the GDP is growing, and the development of the Myanmar ICT market is expected to grow over the next five years.
Understand The Key Trends Shaping This Market
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The IT and Telecom Sector is Expected to Drive the Market
- The increasing IT and Telecom infrastructure investments are driving the ICT market growth. For Instance, Myanmar opened the Lancang-Mekong Project Data Center in Nay Pyi Taw, the country's capital. The data center was built to support programs under the Lancang-Mekong Cooperation. Such infrastructure initiatives will bring new growth opportunities for the Myanmar ICT market.
- Cyberattacks are expected to continue to grow over the next five years. Advancements in IT operations will prevent the ICT market from cyberattacks. For Instance, the WithSecure survey showed that within six months, the volume of malicious files and URLs detected by our Salesforce Security solution increased by 250%, with an average of 57 malicious files or URLs per customer per month. Such initiatives will bring new growth opportunities for the Myanmar ICT market.
- The transition to 3G, 4G, and 5G is still rising in the country due to expanding new networks and increasing demand for high-speed connectivity services. For Instance, in June 2022 - ATOM (Advancing Telecommunications of Myanmar) and Telenor Myanmar brand announced intentions to invest more than USD 330 million over the next three years. This investment is to expand its network and be the first in the nation to introduce 5G service and transform its operations.
- According to GSMA, smartphone adoption in Myanmar will grow by 67.2 Million by 2025. The increasing population of adults in the country is increasingly using smartphones. Thus, the growing population will increase the demand for ICT products and services.
- The telecom industry growth is mainly due to the increasing population with the rising broadband services adoption in the country. According to the Ookla Speedtest Global Index, Myanmar ranked 130th with a median fixed broadband download speed of 18.98 Mbps in November last year. Fixed broadband services penetration is growing significantly and thus increasing the demand for the telecom services sector.
