Egypt ICT Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Egypt ICT Market Trends and Insights

Government-wide Cloud Migration

A mandatory “cloud-first” decree requires every ministry to place new workloads on EG-CLOUD by 2026. Forty percent of core applications already run on the government platform, lowering agency IT operating costs by 35% and cutting service delivery times from hours to minutes^{[2]Ruba Obied, “The Egypt Government Cloud Strategy,” United Nations ESCWA, unescwa.org}. Ministries report 60% faster release cycles, and the Ministry of Finance completed end-to-end budget automation on Oracle Hyperion, releasing real-time dashboards for parliamentary oversight. The policy spurs complementary investments in network security, identity management, and sovereign data zones, giving domestic service providers a stable pipeline through 2030.

“Digital Egypt” Citizen-Service Platform

The Digital Egypt super-app delivers 182 online public services to more than 9 million users and processed 750 million transactions in 2024, up 280% year on year. Its API-driven architecture links payment rails, telcos, and utilities, allowing citizens to settle taxes, traffic fines, and utility bills in minutes. Transaction success rates exceed 99.8%, while rural uptake has doubled since Egypt Post converted 200 branch offices into digital hubs. The platform’s data lake also underpins predictive analytics for subsidy targeting and pandemic response, reinforcing long-term adoption.

Gulf-Funded Hyperscale Data-Center Build-out

Abu Dhabi’s Khazna broke ground on a USD 250 million, 50 MW campus slated for 2026 full capacity, while Elsewedy Electric and Gulf Data Hub committed USD 2.1 billion to a 192 MW complex inside the Suez Canal Economic Zone. These projects exploit abundant renewable energy and proximity to cable landings, delivering a total cost of ownership up to 40% below comparable European sites. The resulting capacity attracts hyperscale cloud providers and AI workloads, anchoring Egypt ICT market growth.

Undersea-Cable Landing Ecosystem

Egypt hosts 15 active systems and five more under construction, including 2Africa and Medusa, giving operators redundant Mediterranean–Red Sea routes that cut round-trip latency by 25% relative to Gibraltar paths. Telecom Egypt’s WeConnect platform bundles 14 cables into a single commercial offer, enabling OTTs to buy capacity on demand. Cable density also encourages manufacturers to localize fiber-optic production, highlighted by Elsewedy’s USD 500 million plant west of Damietta.

Senior Cyber-Talent Shortfall

Egypt’s cybersecurity workforce deficit stands at roughly 3,000 professionals, triple the available supply for senior roles, pushing vacancy periods to 8-12 months and inflating salaries by 30% annually. The National Cybersecurity Strategy aims to certify 1,000 specialists per year through the Cyber Talents program, yet demand outpaces output. Prolonged gaps expose enterprises to phishing incidents, which rose 49% in Cairo during 2024, prompting banks and telcos to outsource SOC operations to international vendors.

Foreign-Exchange Scarcity for Hardware

Three sequential devaluations since 2022 raised import prices 40-60%, delaying refresh cycles for PCs, servers, and network gear^{[3]Stasha Igrutinovic, “Digitalising SMEs on a Shoestring,” European Bank for Reconstruction and Development, ebrd.com} . Seventy-eight percent of SMEs report postponing upgrades because banks cannot supply hard currency, forcing many to run unsupported operating systems. The electronics localization initiative, including Hisense’s USD 38 million appliance plant in the Suez Canal Economic Zone, covers only 15% of domestic demand, leaving the Egypt ICT market exposed to volatile FX conditions.

Segment Analysis

By Type: Telecommunications Backbone Underpins Digital Expansion

Telecommunications services captured 35.24% of Egypt's ICT market share in 2024, reflecting continued capital expenditure on 5G licenses worth USD 675 million and fiber backhaul stretching to 40,000 towers. IT services are projected to grow the fastest at 17.15% CAGR, powered by public-sector outsourcing deals totaling USD 1.575 billion in FY 2022/23. Hardware demand cooled because of FX tightness, yet data-center server purchases surged as hyperscale builds progress. Software investment shifts toward SaaS and AI platforms aligned with the National AI Strategy 2025–2030, which targets 250 AI companies and 30,000 specialists.

In the forecast window, fixed-wireless access and private 5G slices will enable Industry 4.0 in the New Administrative Capital and Suez Canal Economic Zone, while local ISVs bundle Arabic NLP engines into e-commerce, edtech, and health-tech solutions. Regulatory frameworks such as the Personal Data Protection Law spur security spending, benefiting system integrators and MSSPs.

Note: Segment shares of all individual segments available upon report purchase

By Enterprise Size: Large Budgets Dominate but SME Upside Accelerates

Large enterprises commanded 61.15% of Egypt's ICT market in 2024, thanks to multi-year capex programs at telcos, banks, and energy majors. Vodafone and Orange alone earmarked more than USD 609 million and USD 284 million, respectively, for fiber-to-site projects through 2031. These organizations adopt zero-trust architectures, robotic process automation, and hybrid cloud, bolstering their resilience.

SMEs post a 16% CAGR outlook. The EBRD’s Shoestring pilots show 30% efficiency gains from barcode tracking and low-cost IoT sensors among furniture exporters. Government-sponsored “Digital Egypt Builders” offers EGP 2 million soft loans and tech bootcamps, aiming to cover 100,000 SMEs by 2026. Fintech operators such as Fawry Business provide cloud bookkeeping and e-invoice APIs that lower adoption barriers.

By Industry Vertical: Public Sector Leads While Banks Sprint Ahead

Government and public administration accounted for 24.81% of spending in 2024 as 63 state-owned companies pursued process automation and e-procurement frameworks, processing EGP 2.5 trillion in electronic payments over eleven months. BFSI, though smaller, registers a 22.19% CAGR. Real-time payment rails, Egypt’s first digital bank, and AI-powered call-center agents elevate digital wallet penetration beyond 48 million active accounts.

Healthcare is next in line, with Vodafone Business supporting 314 connected hospitals and 6 million patients through telehealth dashboards. Manufacturing leverages subsidized automation audits under the Smart Industry Readiness Index, encouraging MES deployments among cement and textiles firms.

Geography Analysis

Cairo and the emerging New Administrative Capital concentrate roughly 65% of Egypt ICT market revenues, housing head offices, hyperscale data centers, and 5G densification projects. The Smart Capital initiative embeds IoT sensors in traffic, lighting, and utility grids, fostering data-driven municipal services.

The Suez Canal Economic Zone is fast becoming a secondary hub as land prices and renewable-energy availability attract Gulf-backed data centers, electronics OEMs such as Hisense, and submarine cable factories, cementing Egypt’s east-west connectivity role^{[4]State Information Service Editors, “Hisense to Establish $38 M Factory in SCZone,” SIS, sis.gov.eg} .

Upper Egypt and the Delta witness accelerated rural digitization under the “Decent Life” fiber program, plus outsourcing delivery centers in Assiut, where wages are 40% below Cairo levels, yet talent retention is high.