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

  • Published: 2015-01-31
  • Report Code: REP-MA-39

An Incisive, In-depth Analysis on the Mena Digital Transformation Market

This study offers a comprehensive, 360 degree analysis on the Mena Digital Transformation market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Mena Digital Transformation market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Market Definition and Segmentation: Increasing demand for industrial automation is driving the MENA digital transformation market

Digital technologies are transforming an organization’s business models, value chains and ecosystem, as well as revolutionising its interaction with customers through online platforms, social media and mobile devices. Digital transformation is the integration of digital technology into all the areas of a business and it can be defined as the reworking of the products, processes and strategies within an organisation by leveraging current technologies.

The MENA digital transformation market is segmented into four categories, which are digital services, digital software, end-user vertical and region. On the basis of digital services, the MENA digital transformation market is segmented as digital consulting services, digital technology implementation services, digital technology integration services and digital operations & management services. By digital software, the MENA digital transformation market is further segmented as digital content & applications, digital sales & commerce, digital marketing, digital customer experience & service and digital integration platforms. Moreover, on the basis of end-user verticals, the MENA digital transformation market is sub-segmented as retail, BFSI, energy & utility, telecom, healthcare, manufacturing, services, media & entertainment, transportation and public sector.

Market Segmentation Analysis: The digital consulting segment is expected to witness the highest CAGR in the MENA digital transformation market

In this report, FMI has segmented the MENA digital transformation market on the basis of digital services, digital software, end-user vertical and region. By digital services, the MENA digital transformation market is further segmented into digital consulting services, digital technology implementation services, digital technology integration services and digital operations & management services. The digital consulting sub-segment is expected to grow at a relatively higher CAGR in the forecast period in MENA digital transformation market. Organisations are competing with each other by providing enhanced customer services at all levels, which is increasing the need for an efficient and innovative digital roadmap strategy and consulting in the MENA digital transformation market. Due to this factor, the digital consulting services sub-segment is expected to create an incremental opportunity of US$ 177 Mn between 2014 and 2020 in the MENA digital transformations market. However, the digital technology implementation sub-segment is expected to capture the largest market share in terms of value in the MENA digital transformation market. In terms of value, this segment is expected to grow at a CAGR of 14.9% during the forecast period.

The rising need for the integration of digital technology deployed at different levels in an organisation, such as the front and back office, is one of the major factors driving the MENA digital transformation market. Moreover, firms and electric utilities companies in the MENA region are introducing digital initiatives to provide digital services such as online utility bills, outage notification and regular updates to their customers, which is creating potential growth opportunities for the MENA digital transformation market.

Government Regulations and Increasing Number of Smart City Projects are driving the MENA Digital Transformation Market 

The MENA digital transformation market has been segmented into four major regions, namely GCC, Saudi Arabia, North Africa and other Middle East. The GCC region is further sub-segmented into five countries, which are Bahrain, Qatar, UAE, Kuwait and Oman. In terms of value, the Qatar digital transformation market is estimated to expand at a CAGR of 18.6% over the forecast period. This growth can be attributed to the latest laws and regulations introduced by the local government, such as e-transaction and e-commerce laws, which has created significant opportunities for local as well as global players in the MENA digital transformation market. Moreover, the UAE is projected to maintain its dominance in terms of total revenue generation in the MENA digital transformation market. Rising content digitisation & creation and the increased adoption of digital transformation software & services in major sectors, such as government, BFSI and retail, are some of the major factors expected to fuel the growth of the MENA digital transformation market.

Media & Entertainment Firms are going Digital by Incorporating Digital Technologies to Offer Online Digital Magazines, E-newspapers and Video-on-Demand Services 

On the basis of end-user verticals, the BFSI and public and transportation sector collectively accounted for over 50% of the MENA digital transformation market in 2014. Among all the categories under end-user vertical of the MENA digital transformation market, the BFSI sector dominated the MENA digital transformation market with a 24.1% share in 2014, followed by the public sector of the MENA digital transformation market. Furthermore, the BFSI sector is moving towards enhanced online services and CRM technologies to attract new customers, which is, in turn, driving the MENA digital transformation market. Furthermore, E-banking is increasingly becoming common in the MENA region due to the growing demand for digital services. Banks are introducing online banking services for effective customer experiences. This factor is expected to fuel the growth of the BFSI sector in the MENA digital transformation market. However, in terms of expenditure on digital software & services, the media & entertainment sector is expected to exhibit the fastest CAGR between 2014 and 2020.

Apart from this, the low cost of digital products & services and enhanced enterprise mobility are some of the major factors fuelling the growth of the MENA digital transformation market. Moreover, increase in government initiatives and improved customer services are creating potential growth opportunities for the MENA digital transformation market.

The increased uptake of ICT goods, such as mobile phones, laptops, smartphones, tablets, telecommunication devices, integrated circuits, computers & related equipment and various other technological goods in MENA, has been accelerating the growth of the MENA digital transformation market. Furthermore, the growing Internet penetration and social media usage are expected to drive the demand for the digitalisation of services. This is observed as one of the major trends in the MENA digital transformation market.

The growing real-time analytics and amalgamation of marketing, sales and commerce into one platform are also fuelling the demand for digital transformation solutions and are projected to boost the MENA digital transformation market.   

Key market participants covered in the MENA digital transformation market report include IBM Corporation; Wipro Limited; CGI Group, Inc.; Deloitte; Accenture PLC; Oracle Corporation; Dell EMC; CA Technologies; Microsoft Corporation; Hewlett Packard and Capgemini.

Recent Development

  • In 2014, the IBM Corporation entered into a partnership with WPP, a communication services provider. This agreement is aimed at enabling WPP to innovate new digital services that will be run and managed within a global hybrid cloud infrastructure

  • In 2014, Wipro Limited entered into the partnership with Adobe, a provider of digital marketing platforms. This partnership is aimed at creating integrated marketing, commerce, analytics and customer experience solutions that help businesses better understand and win customers and differentiate through targeted, relevant and consistent conversations across multiple devices & channels.

The report also describes company-specific strategies, key differentiators, market structure and competitive share analysis related to prominent industry stakeholders.

Report Synopsis

Future Market Insights offers forecasts for the MENA digital transformation market between 2014 and 2020. In terms of value, the market is expected to register a double-digit CAGR during the forecast period. This study demonstrates the market dynamics and trends globally across four major regions: GCC countries, Saudi Arabia, North Africa and other Middle East, which influence the current nature and the future status of the MENA digital transformation market over the forecast period.

Report Description

This research report provides a detailed analysis of the MENA digital transformation market and offers insights about the various factors driving the popularity of MENA digital transformation and its advantages. The report includes an extensive analysis of key industry drivers, challenges, market trends and the structure of the MENA digital transformation market. The MENA digital transformation market study provides a comprehensive assessment of stakeholder strategies and imperatives for succeeding in the business. The MENA digital transformation market report segregates the market based on product type, construction, end user and regions globally.

The increased uptake of ICT goods such as mobile phones, laptops, smartphones, tablets, telecommunication devices, integrated circuits, computers & related equipment and various other technological goods in MENA have been accelerating the growth of the MENA digital transformation market. Moreover, the growing penetration of the Internet and social media usage are expected to drive the demand for the digitalisation of services. This is observed as one of the major trends in the MENA digital transformation market.

The report starts with an overview of the MENA digital transformation market in terms of value. In addition, this section includes an analysis of key trends, drivers and challenges from the supply, demand & economy side, which are influencing the MENA digital transformation market.

The MENA digital transformation market is segmented into four categories: digital services, digital software, end-user verticals and region. By digital services, the MENA digital transformation market is further segmented into digital consulting services, digital technology implementation services, digital technology integration services and digital operations & management services. The digital consulting sub-segment is expected to grow at a relatively higher CAGR during the forecast period. Organisations are competing with each other by providing enhanced customer services at all levels, which is increasing the need for an efficient and innovative digital roadmap strategy and consulting. Hence, the digital consulting services sub-segment is expected to create an incremental opportunity of US$ 177 Mn between 2014 and 2020.

The next section contains a detailed analysis of the MENA digital transformation market across various countries. It provides a market outlook for 2014–2020 and sets the forecast within the context of the MENA digital transformation market, which includes latest technological developments as well as offerings in the MENA digital transformation market. This study discusses key trends within countries contributing to growth of the market, as well as analyses the degrees at which drivers are influencing this market in each region. Key countries assessed in this report include GCC Countries (Bahrain, Qatar, UAE, Kuwait and Oman), Saudi Arabia, North Africa and other Middle East. The report evaluates the present scenario and growth prospects of the MENA digital transformation market across various countries in MENA for the period 2014 –2020. We have considered 2014 as the base year and provided data for the remaining 12 months.

To offer an accurate forecast, we started by sizing the current market, which forms the basis of how the MENA digital transformation market will grow in the future. Given the characteristics of the MENA digital transformation market, we have triangulated the outcome of different types of analysis based on technology trends.

As previously highlighted, the global MENA digital transformation market is split into a number of segments. All segments in terms of digital services, digital software, end-user vertical and regions are analysed in terms of basis points to understand the relative contributions of individual segments to the growth of the MENA digital transformation market. This detailed level of information is important for the identification of various key trends in the global MENA digital transformation market.

In addition, another key feature of this report is the analysis of all key segments in terms of absolute dollar opportunity. 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 global MENA digital transformation market.

In the final section of the report, we have included a competitive landscape to provide clients a dashboard view based on the categories of providers in the value chain, their presence in the MENA digital transformation market and key differentiators. This section is primarily designed to provide clients an objective and detailed comparative assessment of key providers specific to a market segment in the MENA digital transformation supply chain and the potential players for the same. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on the in-depth assessment of capabilities and success in the marketplace. Detailed profiles of 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 market. Some of the key competitors covered in the MENA digital transformation market report are IBM Corporation; Wipro Limited; CGI Group, Inc.; Deloitte; Accenture PLC; Oracle Corporation; Dell EMC; CA Technologies; Microsoft Corporation; Hewlett Packard and Capgemini.

Key Segments

By Digital Services

  • Digital Consulting Services

  • Digital Technology Implementation Services

  • Digital Technology Integration Services

  • Digital Operations & Management Services

By Digital Software

  • Digital Content & Application Software

  • Digital Sales & Commerce Software

  • Digital Marketing Software

  • Digital Customer Experience Software

  • Digital Integration Software

By End User

  • Retail

  • BFSI

  • Energy & Utility

  • Telecom

  • Healthcare

  • Manufacturing

  • Services

  • Media and Entertainment

  • Transportation

  • Public Sector

Key Regions covered:

  • GCC Countries

    • Bahrain

    • Qatar

    • UAE

    • Kuwait

    • Oman

  • Saudi Arabia

  • North Africa

  • Other Middle East

Key Companies

  • IBM Corporation

  • Wipro Limited

  • CGI Group, Inc.

  • Deloitte

  • Accenture PLC

  • Oracle Corporation

  • Dell EMC

  • CA Technologies

  • Microsoft Corporation

  • Hewlett Packard

  • Capgemini

Mena Digital Transformation Market Reports - Table of Contents

Mena Digital Transformation Market Reports - List of Tables

  1. Average penetration level of ICT components, 2013

  2. MENA Digital Transformation Market Value Forecast by Digital

  3. MENA Digital Transformation Market Value Forecast by Digital

Mena Digital Transformation Market Reports - List of Figures

  1. MENA ICT Components Average Penetration - 2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  31. MENA Digital Transformation Market Value Forecast ($ Mn) and Y-o-Y Growth, by Healthcare Sector, 2014 – 202 0 ($ Mn)

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

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

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

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

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

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

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

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

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

  41. MENA Digital Transformation Market Attractiveness by Verticals - 2013

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

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

  44. GCC Digital Transformation Market Attractiveness, by Country, 2013

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

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

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

  48. MENA Digital Transformation Market - Technologies Time Mapping

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

  50. North Africa Digital Transformation Market Share by Country, 2013

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