Mena Digital Transformation Market

Digital Transformation Market: MENA Industry Analysis and Opportunity Assessment 2014 - 2020

Introduction

Digital transformation describes the adaptation of a company’s value proposition, technology strategy and operational model to the fundamental changes brought by digital technologies. Digital transformation technologies are transforming organization’s business models, value chains, ecosystem as well as revolutionizing its interaction with customer through online platforms, social media and mobile devices.  Digital transformation takes in digital services and digital software which are becoming mainstream in various major verticals such as banking, financial services and insurance (BFSI) sector, manufacturing and retail sector as these services and software enhance customer experience at all the levels of customer touch points.

Middle East & North Africa Digital Transformation: Market Value and Forecast

The MENA digital transformation market was valued at 897.0 Mn in 2013 and is projected to account for US$ 2,398.3 Mn by 2020, registering a healthy CAGR of 15.1% from 2014 to 2020. Increasing need for enhanced customer experience at all levels of customer interaction points and enhanced process transparency in enterprises across the MENA region is driving the growth of MENA digital transformation market. Moreover, increasing eGovernment and smart city initiatives in Saudi Arabia and the UAE, with the objective to transform themselves into digitally-enabled countries, is further supporting the market growth.

MENA Digital Transformation Market: Key Device Type

FMI has segmented MENA digital transformation market into digital software and digital services. Digital services segment dominated the market with over half of the overall MENA digital transformation market share in 2014. However, this is expected to decrease by 70 BPS by 2020. The digital software segment been further sub-segmented into digital content and application, digital sales & commerce, digital marketing, digital consumer experience & service, and digital integration platform software. Among all the digital software sub-segments, digital content and application and digital sales & commerce software sub-segments dominated the market in 2014. Digital service segment includes digital consulting, digital technology implementation, digital technology integration and digital operations & management service. Of all the previously mentioned sub-segments, digital technology implementation sub-segment dominated the market in 2014 followed by digital technology integration service sub-segment.


Key Verticals in the Middle East & North Africa Market

By end-user vertical banking, financial services and insurance (BFSI) and public sectors dominated with over 40% share of the MENA digital transformation market in 2013. However, the media & entertainment sector sub-segment is projected to exhibit the fastest CAGR during the forecast period, followed by the retail sector sub-segment. This growth is attributed to the shift from print to digital media, increasing penetration of smartphones and changing consumer buying habits.

MENA Digital Transformation Market: Region-wise Outlook

Ongoing infrastructural modernisation across major GCC and North African countries in MENA region in terms of digitisation is leading to an increase in uptake of digital software and digital services across end-user verticals. At present, Saudi Arabia is dominating the market with over one-third share of the overall MENA digital transformation market, followed by the UAE and Algeria. However, Qatar is expected to grow at a significant double-digital CAGR over the forecast period from 2014 to 2020.

Key Players

Key players in the MENA digital transformation market are continuing to innovate by including advanced features into digital technology solutions. Additionally, major participants such as IBM, Accenture and Deloitte have been focusing on mergers and acquisitions in order to expand their geographical presence and enhance customer base. Major players included in the report are IBM Corporation, CGI Group Incorporation, Accenture PLC, Deloitte Touche Tohmatsu Limited, Booz & Co. and PWC.

This Future Market Insights report examines the ‘MENA Digital Transformation market for the period 2014–2020. The primary objective of the report is to offer updates on the advancements in ICT and embedded systems that have given rise to a futuristic technology: the digital transformation, which is significantly transforming business to business (B2B) verticals. 

Digital transformation describes the adaptation of a company’s value proposition, technology strategy and operational model to the fundamental changes brought about by digital technologies. Digital transformation technologies are transforming organization’s business models, value chains, ecosystem as well as revolutionizing its interaction with customer through online platforms, social media and mobile devices.  Digital Transformationtakes indigital services and digital software which are becoming mainstream in various major verticals such as banking, financial services and insurance (BFSI) sector, manufacturing and retail sector as these services and software enhance customer experience at all the levels of customer touchpoints.

In the next section, FMI covers the MENA Digital Transformation market performance in terms of MENA Digital Transformation revenue split, since this is detrimental to growth of the Digital Transformation market. This section additionally includes FMI’s analyses of the key trends, drivers and restraints from the supply, demand and economy side, which are influencing the MENA Digital Transformation market. Impact analysis and latest technological trends opportunity assessment is included in the MENA Digital Transformation market report to better equip and arm clients with crystal clear decision-making insights.

The primary focus of the following sections to analyse the MENA Digital Transformation market by adoption among verticals; the primary verticals covered under the scope of the report are digital software and digital services uptake among Business to Business verticals such as public sector, manufacturing sector, BFSI sector and so on. A detailed analysis has been provided for every vertical in terms of market size.

As highlighted earlier, MENA Digital Transformation is an aggregation of digital services (includingdigital consulting, digital technology implementation, digital technology integration and digital operations & management) and digital software(including digital content & application, digital sales & commerce, digital marketing, digital consumer experience & service and digital integration platform). All these sub-segments are included in this section to make the study more comprehensive.

The next section of the report highlights digital services and software adoption by geography. It provides a market outlook for 2014–2020 and sets the forecast within the context of the Digital Transformation ecosystem, including digital services, digital software and verticals to build a complete picture at regional and country levels. This study discusses the key regional trends contributing to growth of the digital transformation software and services market on a regional basis. Key regions/country assessed in this report include Gulf Cooperation Council (GCC excluding Saudi Arabia), Saudi Arabia, North Africa and other Middle East countries.

All the above sections, by digital services, by digital software and by vertical or by regions, evaluate the present scenario and the growth prospects of the MENA Digital Transformation market for the period 2014 –2020. We have considered 2013 as the base year and provide data for the trailing 12 months.  

To calculate the MENA Digital Transformation market size, we have considered revenue generated from the sale of digital software, related platforms and services availed. The forecast presented here assesses the total revenue by both Value across the MENA digital transformation market. In order to offer an accurate forecast, we started by sizing the current market, which forms the basis of how the MENA digital transformation market will develop in the future. Given the characteristics of the market, we triangulated the outcome of three different types of analyses, based on supply side, consumer spending and economic envelope. However, forecasting the market in terms of various digital software, digital services, verticals uptake and region/country is more a matter of quantifying expectations and identifying opportunities rather than rationalising them after the forecast has been completed.

In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities across the MENA Digital Transformation market. 

As previously highlighted, the MENA Digital Transformation market is split into a number of sub categories. All the Digital Transformation sub-categories in terms of software, services, region/country and verticals are analysed in terms of Basis Point Share (BPS) to understand individual segments’ relative contributions to market growth. This detailed level of information is important for the identification of various key trends of the MENA Digital Transformation market.   

Also, another key feature of this report is the analysis of all key MENA Digital Transformation market segments, sub-segments, regional/country adoption and verticals revenue forecast in terms of absolute dollar. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the MENA Digital Transformation market.  

Furthermore, to understand key growth segments in terms of growth & adoption of digital software and digital services across regions/country, Future Market Insights developed the MENA Digital Transformation Market Attractiveness Index. The resulting index should help providers identify real market opportunities. 

In the final section of the report, MENA Digital Transformation Market Competitive landscape is included to provide report audiences with a Dashboard view, based on categories of provider in the value chain, presence in Digital Services and Software product portfolio and key differentiators. Key categories of providers covered in the report are Digital Services and Digital Software Providers. This section is primarily designed to provide clients with an objective & detailed comparative assessment of key providers specific to a market segment in the MENA Digital Transformation market value chain. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on in-depth assessment of capabilities and success in the MENA Digital Transformation marketplace. Detailed profiles of the providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the MENA Digital Transformation space. Key competitors covered are IBM Corporation, CGI Group Incorporation, Accenture PLC, Deloitte Touche Tohmatsu Limited, Booz & Co. and PWC.

Key Segments Covered

By Digital Services

  • Digital Consulting

  • Digital Technology Implementation

  • Digital Technology Integration

  • Digital Operations & Management

By Digital Software 

  • Digital Content & Application

  • Digital Sales & Commerce

  • Digital Marketing

  • Digital Consumer Experience & Services

  • Digital Integration Platforms

By Verticals

  • Public Sector

  • Manufacturing Sector

  • Banking, Financial Services and Insurance (BFSI) Sector

  • Media & Entertainment Sector

  • Telecomm Sector

  • Energy & Utility Sector

  • Services Sector

  • Retail Sector

  • Healthcare Sector

  • Transportation & Distribution Sector

Key Regions/Countries Covered

  • GCC Countries

  • Saudi Arabia

  • North Africa

  • Other Middle East Countries

  • Key Companies

IBM Corporation

  • CGI Group Incorporation

  • Accenture plc

  • Deloitte Touche Tohmatsu Ltd.

  • Booz & Co.

  • PWC

Table Of Content

1. MENA Digital Transformation Market – Executive Summary

2. Digital Transformation Value Chain

3. Introduction to MENA ICT Market

3.1 Information Communication & Technology (ICT) Scenario in MENA Region

3.2 Penetration of ICT Components in MENA by Country

3.3 Key ICT Trends in MENA Region

3.4 Major ICT Technology Adoption Analysis in MENA

4. MENA Digital Transformation Market Analysis

4.1. MENA IT and Digital Transformation Market Y-o-Y Growth Comparison, 2014 – 2020 (%)

4.2. MENA Digital Transformation Market Value Share, 2014 & 2020 (%)

5. MENA Digital Transformation Market Analysis by Digital Services

5.1. MENA Digital Transformation Market Value Share, by Digital Services, 2014 & 2020 (%)

5.2. MENA Digital Transformation Value Forecast, by Digital Services, 2014 – 2020 

5.3. Digital Services Market Absolute $ Opportunity, 2013 - 2020

5.4. Digital Consulting Services

5.5. Digital Technology Implementation Services

5.6. Digital Technology Integration Services 

5.7. Digital Operations & Management Services

6. MENA Digital Transformation Market Analysis by Digital Software

6.1. MENA Digital Software Market Value Share Analysis, by Digital Software, 2014-2020

6.2. MENA Digital Transformation Value Forecast, by Digital Software, 2014 – 2020 

6.3. Digital Software Market Absolute $ Opportunity, 2013 – 2020

6.4. Digital Content & Application Software

6.5. Digital Sales & Commerce Software

6.6. Digital Marketing Software

6.7. Digital Customer Experience Software

6.8. Digital Integration Software

7. MENA Digital Transformation Market by Verticals

7.1. MENA Digital Transformation Market by Public Sector

        7.1.1. MENA Digital Transformation Market Value Forecast and Y-o-Y Growth, by Public Sector, 2014 – 2020

        7.1.2. MENA Digital Transformation Market Absolute $ Opportunity in Public Sector, 2013 – 2020 

        7.1.3. MENA Digital Transformation Key Trends and Drivers in Public Sector

7.2. MENA Digital Transformation Market by Retail Sector

        7.2.1. MENA Digital Transformation Market Value Forecast and Y-o-Y Growth, by Retail Sector, 2014 – 2020

        7.2.2. MENA Digital Transformation Market Absolute $ Opportunity in Retail Sector, 2013 – 2020 

        7.2.3. MENA Digital Transformation Key Trends and Drivers in Retail Sector

7.3. MENA Digital Transformation Market by Banking, Financial Services & Insurance (BFSI)

        7.3.1. MENA Digital Transformation Market Value Forecast and Y-o-Y Growth, by BFSI Sector, 2014 – 2020

        7.3.2. MENA Digital Transformation Market Absolute $ Opportunity in BFSI Sector, 2013 – 2020 

        7.3.3. MENA Digital Transformation Key Trends and Drivers in BFSI Sector

7.4. MENA Digital Transformation Market by Energy & Utility Sector

        7.4.1. MENA Digital Transformation Market Value Forecast and Y-o-Y Growth, by Energy & Utility Sector, 2014 – 2020

        7.4.2. MENA Digital Transformation Market Absolute $ Opportunity in Energy & Utility Sector, 2013 – 2020 

7.4.3. MENA Digital Transformation Key Trends and Drivers in Energy & Utility Sector

7.5. MENA Digital Transformation Market by Telecom Sector

        7.5.1. MENA Digital Transformation Market Value Forecast and Y-o-Y Growth, by Telecom Sector, 2014 – 2020

        7.5.2. MENA Digital Transformation Market Absolute $ Opportunity in Telecom Sector, 2013 – 2020 

        7.5.3. MENA Digital Transformation Key Trends and Drivers in Telecom Sector

7.6. MENA Digital Transformation Market by Healthcare Sector

        7.6.1. MENA Digital Transformation Market Value Forecast and Y-o-Y Growth, by Healthcare Sector, 2014 – 2020

        7.6.2. MENA Digital Transformation Market Absolute $ Opportunity in Healthcare Sector, 2013 – 2020 

        7.6.3. MENA Digital Transformation Key Trends and Drivers in Healthcare Sector

7.7. MENA Digital Transformation Market by Manufacturing Sector

        7.7.1. MENA Digital Transformation Market Value Forecast and Y-o-Y Growth, by Manufacturing Sector, 2014 – 2020

        7.7.2. MENA Digital Transformation Market Absolute $ Opportunity in Manufacturing Sector, 2013 – 2020 

        7.7.3. MENA Digital Transformation Key Trends and Drivers in Manufacturing Sector

7.8. Digital Transformation Market by Services Sector

        7.8.1. MENA Digital Transformation Market Value Forecast and Y-o-Y Growth, by Services Sector, 2014 – 2020

        7.8.2. MENA Digital Transformation Market Absolute $ Opportunity in Services Sector, 2013 – 2020 

7.8.3. MENA Digital Transformation Key Trends and Drivers in Services Sector

7.9. MENA Digital Transformation Market by Media & Entertainment Sector

        7.9.1. MENA Digital Transformation Market Value Forecast and Y-o-Y Growth, by Media & Entertainment Sector, 2014 – 2020

        7.9.2. MENA Digital Transformation Market Absolute $ Opportunity in Media & Entertainment Sector, 2013 – 2020 

        7.9.3. MENA Digital Transformation Key Trends and Drivers in Media & Entertainment Sector

7.10. MENA Digital Transformation Market by Transportation Sector

        7.10.1. MENA Digital Transformation Market Value Forecast and Y-o-Y Growth, by Transportation Sector, 2014 – 2020

        7.10.2. MENA Digital Transformation Market Absolute $ Opportunity in Transportation Sector, 2013 – 2020 

        7.10.3. MENA Digital Transformation Key Trends and Drivers in Transportation Sector

7.11. MENA Digital Transformation Relative Market Attractiveness by Verticals

8. MENA Digital Transformation Market by Geography

8.1. GCC Digital Transformation Market Value Forecast and Y-o-Y Growth, 2014 – 2020

        8.1.1. GCC Digital Transformation Market Attractiveness by Countries, 2013

8.2. Saudi Arabia Digital Transformation Market Value Forecast and Y-o-Y Growth, 2014 – 2020

8.3. North Africa Digital Transformation Market Value Forecast and Y-o-Y Growth, 2014 – 2020

8.4. Other Middle East Digital Transformation Market Value Forecast and Y-o-Y Growth, 2014 – 2020

8.5. MENA Digital Transformation Market Outlook - 2013    

9. MENA Digital Transformation Market – Technology Time Mapping                                                                                                        

10. MENA Digital Transformation Market – Competitive Landscape

11. MENA Digital Transformation Market – Recommendations

Disclaimers: Future Market Insights strives to meet the best possible standards in terms of thoroughness and accuracy of all our research; to achieve that we continuously update market numbers, forecast etc; some of our published data in upcoming/ published research reports might slightly vary from actual highlighted data because of certain changes in market dynamics over time

List of Tables

Table 1: Average penetration level of ICT components, 2013

Table 2: MENA Digital Transformation Market Value Forecast by Digital Services, 2013 - 2020 ($ Mn)

Table 3: MENA Digital Transformation Market Value Forecast by Digital Software, 2013 - 2020 ($ Mn)

List of Figures

Figure 1: MENA ICT Components Average Penetration - 2013

Figure 2: ICT Technology Adoption – Global V.s. MENA

Figure 3: MENADigital Transformation Market Value Forecast ($ Mn.) and Y-o-Y Growth (%), 2013-2020

Figure 4:MENA IT and Digital Transformation Market Value Forecast ($ Mn.) and Y-o-Y Growth Comparison (%), 2013 – 2020

Figure 5: MENADigital Transformation Market Value Share, by Type, 2014 & 2020 (%)

Figure 6: Digital Services Market Value Share by Services Type, 2014 & 2020 (%)

Figure 7: Digital Services Absolute $ Opportunity, 2013 – 2020 ($ Mn.)

Figure 8:Digital Consulting Absolute $ Opportunity, 2013 – 2020 ($ Mn.)

Figure 9: Digital Technology Implementation Absolute $ Opportunity, 2013 – 2020 ($ Mn.)

Figure 10: Digital Technology Integration Absolute $ Opportunity, 2013 – 2020 ($ Mn)

Figure 11: Digital Operations & Management Absolute $ Opportunity, 2013 – 2020 ($ Mn)

Figure 12: MENA Digital Transformation Market Value Share, by Digital Software, 2014 & 2020 (%)

Figure 13: Digital Software Absolute $ Opportunity, 2013 – 2020 ($ Mn)

Figure 14: Digital Content & Applications Absolute $ Opportunity, 2013 – 2020 ($ Mn)

Figure 15: Digital Sales & Commerce Absolute $ Opportunity, 2013 – 2020 ($ Mn)

Figure 16: Digital Marketing Absolute $ Opportunity, 2013 – 2020 ($ Mn)

Figure 17: Digital Customer Experience & Services Absolute $ Opportunity, 2013 – 2020 ($ Mn)

Figure 18: Digital Integration Platforms Absolute $ Opportunity, 2013 – 2020 ($ Mn)

Figure 19: MENADigital Transformation Market Value Share, by Verticals, 2014 & 2020 (%)

Figure 20: Digital Transformation Market Absolute $Across Verticals, 2013 -2020 ($ Mn)

Figure 21: MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by Public Sector, 2014 – 2020 ($ Mn)

Figure 22: Digital Transformation Market Absolute $ Opportunity in Public Sector, 2013 – 2020 ($ Mn)

Figure 23: MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by Retail Sector, 2014 – 2020 ($ Mn)

Figure 24: Digital Transformation Market Absolute $ Opportunity in Retail Sector, 2013 – 2020 ($ Mn)

Figure 25: MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by BFSI Sector, 2014 – 2020 ($ Mn)

Figure 26: Digital Transformation Market Absolute $ Opportunity in BFSI Sector, 2013 – 2020 ($ Mn)

Figure 27: MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by Energy & Utility Sector, 2014 – 2020 ($ Mn)

Figure 28: Digital Transformation Market Absolute $ Opportunity in Energy & Utility Sector, 2013 – 2020 ($ Mn)

Figure 29: MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by Telecom Sector, 2014 – 2020 ($ Mn)

Figure 30:Digital Transformation Market Absolute $ Opportunity in Telecom Sector, 2013 – 2020 ($ Mn)

Figure 31: MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by Healthcare Sector, 2014 – 2020 ($ Mn)

Figure 32: Digital Transformation Market Absolute $ Opportunity in Healthcare Sector, 2013 – 2020 ($ Mn)

Figure 33: MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by Manufacturing Sector, 2014 – 2020 ($ Mn)

Figure 34: Digital Transformation Market Absolute $ Opportunity in Manufacturing Sector, 2013 – 2020 ($ Mn)

Figure 35: MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by Services Sector, 2014 – 2020 ($ Mn)

Figure 36: Digital Transformation Market Absolute $ Opportunity in Services Sector, 2013 – 2020 ($ Mn)

Figure 37: MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by Media & Entertainment Sector, 2014 – 2020 ($ Mn)

Figure 38: Digital Transformation Market Absolute $ Opportunity in Media & Entertainment Sector, 2013 – 2020 ($ Mn)

Figure 39: MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by Transportation Sector, 2014 – 2020 ($ Mn)

Figure 40: Digital Transformation Market Absolute $ Opportunity in Transportation Sector, 2013 – 2020 ($ Mn)

Figure 41: MENA Digital Transformation Market Attractiveness by Verticals - 2013

Figure 42: GCC Digital Transformation Market Value Forecast ($Mn) and Y-o-Y Growth, 2014 – 2020

Figure 43: GCC Digital Transformation Market Absolute $ Opportunity, 2013– 2020 ($ Mn)

Figure 44: GCC Digital Transformation Market Attractiveness, by Country, 2013

Figure 45: Saudi Arabia Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, 2014 – 2020 ($ Mn)

Figure 46: North Africa Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, 2014 – 2020 ($ Mn)

Figure 47: Other Middle-East Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, 2013 – 2020 ($ Mn) 

Figure 48: MENA Digital Transformation Market - Technologies Time Mapping

Figure 49: Middle East Digital Transformation Market Value Share, by Countries, 2013 (%)

Figure 50: North Africa Digital Transformation Market Share by Country, 2013