MENA Digital Transformation Market

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

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.

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

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