Unveiling the Robust Growth of the ICT Sector in META
The Information and Communications Technology (ICT) sector in the Middle East, Türkiye, and Africa (META) is witnessing a remarkable surge in growth, poised for a strong year ahead. Fueled by investments in artificial intelligence (AI), cloud computing, and cybersecurity, the region is experiencing significant advancements in its tech landscape.
Rising Investments and Projections
According to the International Data Corporation (IDC), overall spending in the META ICT sector is projected to reach a staggering $238 billion in 2024, marking a 4.5% increase from the previous year. This growth is primarily attributed to escalating investments in AI, cloud computing, and cybersecurity infrastructure.
Key Insights from IDC Directions 2024
At the recent IDC Directions Middle East, Türkiye, and Africa event, industry leaders and executives convened to discuss the region’s tech landscape and future prospects. The event highlighted crucial insights, including projections for telecommunications services spending and IT expenditures.
Telecommunications and IT Spending
IDC forecasts a 5% year-on-year increase in telecommunications services spending, expected to reach $133 billion in 2024. Similarly, IT spending is set to grow by 3.9% YoY, reaching $105 billion. These figures underscore the robust growth trajectory of the ICT sector in META.
Digital Transformation and AI Adoption
As META’s digital economy continues to evolve, IDC anticipates digital transformation spending to exceed $59 billion in 2024. Moreover, the adoption of AI technologies is on the rise, with spending expected to surpass $3 billion this year, representing a 32% increase from 2023.
Looking ahead, IDC emphasizes the importance of evolving AI investment priorities, with a focus on revenue growth outcomes rather than solely cost reduction. The emergence of generative AI (GenAI) is hailed as a golden era of innovation, with global spending projected to surpass $150 billion by 2027.
Responsible AI Strategy and Support Mechanisms
Tech vendors are urged to develop responsible AI strategies to support their customers’ evolving needs. As GenAI adoption grows, it becomes imperative for providers to facilitate funding for investments and deliver substantial business outcomes for prioritized use cases.
The META region is witnessing a significant uptick in public cloud adoption, with spending expected to surpass $13 billion in 2024. Notably, software as a service (SaaS) accounts for 59% of public cloud spending, followed by infrastructure as a service (IaaS) and platform as a service (PaaS).
Cybersecurity remains a top priority, with spending projected to exceed $6.5 billion this year. A substantial majority of Chief Information Security Officers (CISOs) anticipate budget increases, reflecting the region’s commitment to fortifying its cyber defenses.
The META region is on the cusp of a technological revolution, fueled by investments in AI, cloud computing, and cybersecurity. As the ICT sector continues to evolve, stakeholders must remain vigilant, embracing responsible AI strategies and prioritizing cybersecurity to navigate the complexities of the digital age.