Kuwait ICT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

Kuwait ICT Market is segmented By Technology (Big Data Analytics, Mobility, Cloud Computing, Storage, Business Process Outsourcing), By Component (Hardware, Devices, Software and Services, Communication and Connectivity), By End User Industry (Oil, Gas, and Utilities, Transportation and Logistics, Healthcare, Financial Services, Manufacturing, and Construction)

Market Snapshot

kuwait ict market
Study Period: 2020-2027
Base Year: 2021
CAGR: >10 %

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Market Overview

  • The Government policies and PPP initiatives like National Development Plan called 'New Kuwait'is expected to develop substantial IT and communication infrastructure to support the national development plan. The Communication and Information Technology Regulatory Authority (CITRA) in Kuwait is responsible for overseeing the ICT sector and monitoring and protecting the interests of users and service providers in the country while ensuring equality of opportunity, transparency, and fair competition.
  • The country has been among the Early adopters of the 5G network. The adoption of 5G technology has been key to achieving the country's vision of 2035, as is the earmarking of human and financial resources to create a wider and deeper IT ecosystem. For instance, according to per Communication and Information Technology Regulatory Authority (CITRA), 99.4% of the population have an internet connection at home, and a 5G network covers about 97% of the people in Kuwait.
  • Additionally, Kuwait's ICT is estimated to be one of the emerging markets in the future, which requires hardware, software, and other IT services. The Increasing penetration of technology giants in the country to take advantage of the Privatization in Kuwait.
  • However, due to the lack of a skilled workforce to manage advanced IT and communication technology, the country's dependency on external sources to balance the skill deficit is expected to hinder market growth in Kuwait.
  • The COVID-19 pandemic has significantly impacted Kuwait's economy, reaching a budget deficit of 9.38% as economic growth fell to -8.1% in 2020. This comes as unemployment nearly tripled from 2.41% in 2019 to 6.79% in 2020. Although, the lifting up of restriction in numerous countries have improved the economic conditions in the country. Moreover, just like other countries Kuwaiti government also attempted to navigate this unprecedented situation and lead the country's economic recovery, emphasizing engagement with and expanding the private sector.

Scope of the Report

Information and Communication Technologies or ICT is a broader term for Information Technology (IT). It refers to all communication technologies, such as wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and other media applications and services enabling users to store, access, transmit, retrieve, and manipulate information in a digital form.

Kuwait ICT Market is segmented By Technology (Big Data Analytics, Mobility, Cloud Computing, Storage, Business Process Outsourcing), By Component (Hardware, Devices, Software and Services, Communication and Connectivity), By End User Industry (Oil, Gas, and Utilities, Transportation and Logistics, Healthcare, Financial Services, Manufacturing, and Construction)

Technology
Big Data Analytics
Mobility
Cloud Computing
Storage
Business Process Outsourcing
Others
Component
Hardware
Devices
Software and Services
Communication and Connectivity
End-User Industry
Oil, Gas and Utilities
Transportation and Logistics
Healthcare
Financial Services
Manufacturing and Construction
Others (Environment, Media & Entertainment)

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Key Market Trends

Digital Transformation is Expected to Drive the ICT Market in Kuwait

  • The ICT spending in Kuwait will be largely driven by the growing adoption of advanced technologies, such as artificial intelligence, cloud computing, big data, and the Internet of Things. Additionally, growing software AI and automation, adoption of Data Analytics, and Big data in end-user industries will likely have a considerable impact on the Kuwait ICT market in the projected timeframe.
  • The increasing acquisitions and investments in the IT industry will significantly impact the growth of the ICT sector in the years ahead. Acquisitions in the industry have led the companies to enlarge their scale of operations, increase revenue and develop expertise. The government is also promoting privatization and has increased its spending as part of its vision of 2035.
  • Kuwait is host to several highly promising start-ups tapping into growth opportunities in the ICT sector, especially in cutting-edge technologies. Kuwait is also capitalizing on emerging trends, specifically in healthcare. Healthcare institutions are using digital technologies to improve health outcomes and provide innovative care delivery models that cater to evolving customer expectations while keeping costs in check.
  • Furthermore, the Kuwait Government’s continued emphasis on the digital transformation of public and private sector services means that mobility, cloud computing, data and analytics, and storage will witness high adoption in the coming years. All these factors will support the growth of the ICT market in the country.
  • Additionally, the increasing use of mobile devices by people and organizations to search for information, use applications for entertainment, communication, and click pictures, among others. It can also be used to surf the internet, play games, watch movies, and other related stuff with access to the internet. Due to the convenience and ease of operation, there will be a surge in Internet users. For instance, as per GSMA Intelligence, the number of mobile internet users in the Middle East and North Africa is projected to reach around 357 million in 2025, from 264 million in 2019.
 kuwait ict market share

Increasing Penetration of Smart Devices is Expected to Propel Market Demand

  • The increasing penetration of smartphones is expected to propel growth for the ICT market in Kuwait. Increasing GDP will propel people to spend more on luxury and comfort; with the enhanced purchasing power, consumers are expected to spend more. In January 2021, Kuwait’s population stood at 4.30 million and had 4.26 million active internet users. This shows that the people living in the region are tech-savvy and adapt to change rapidly. For instance, according to imf.org, the country's GDP stood at USD 105.95 billion in 2020 and is projected to reach USD 183.10 in 2027.
  • The increasing use of smartphones, smart wearables, and smart electronics has revolutionized how data is used. The increasing amount of data has made it impossible to use it for a data-based decision. This has propelled companies to use AI and big data analytics to extract useful information to make informed decisions and keep track of changing consumer preferences and buying patterns.
  • For instance, In January 2022, Zain Kuwait signed a strategic agreement with Ericsson to upgrade and modernize its existing Business Support Systems to pave the way for the commercial launch of 5G services. It will provide Zain Kuwait more flexibility, increased efficiency, and a shortened time-to-market when launching 5G services. Also, the Ericsson BSS solutions will provide the building blocks that will support Zain Kuwait to provide services for industry 4.0, enabling use cases such as smart manufacturing, the Internet of things, and others.
  • Technology start-ups are being encouraged, and the government sees private sector jobs and initiatives as an important part of the drive to diversify the economy while attracting higher levels of international investment.
kuwait ict industry

Competitive Landscape

  • April 2022: Kalaam Telecom announced the completion of its acquisition of Kuwaiti ISP and ICT services company Zajil International Telecom Co (KSCC). The acquisition will transform the company into a one-stop digital solution provider for enterprises and makes it one of the top three ISPs in the GCC.
  • April 2022: Kamco Invest successfully led the acquisition of e-Portal Holding Company e-Portal, one of Kuwait’s key players in the Information and Communication Technology (ICT) field, by Kuwait Telecommunications Company stc, a leading regional telecom and digital solutions provider. The acquisition aligns with STC's inorganic growth strategy and helps the company diversify its customer base and expand its solutions beyond traditional telecommunication services.

Recent Development

  • June 2022: ZainTech, the digital and ICT solutions arm of Zain Group, has entered into a partnership agreement with Atos, a global leader in digital transformation, to address the evolving needs of the B2B market across the Zain operations in the Middle East and North Africa (MENA) region starting with Kuwait.
  • June 2022: Zain, a leading mobile voice and data services operator in seven Middle Eastern and African markets, announces it has completed the first live trial in the region of Open and Virtual Radio Access Network in Kuwait. The innovative achievement enhanced Zain Kuwait’s position on the global ICT map and was implemented in collaboration with Mavenir and with Masiya.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of the Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Government policies and PPP initiatives such as National Development Plan called ‘New Kuwait’

      2. 5.1.2 Early adoption of 5G network

      3. 5.1.3 Increasing penetration of technology giants

    2. 5.2 Market Challenges / Restrain

      1. 5.2.1 High dependence on external sources to balance the skill deficit

      2. 5.2.2 Heavy dependance on oil and gas sector

  6. 6. MARKET SEGMENTATION

    1. 6.1 Technology

      1. 6.1.1 Big Data Analytics

      2. 6.1.2 Mobility

      3. 6.1.3 Cloud Computing

      4. 6.1.4 Storage

      5. 6.1.5 Business Process Outsourcing

      6. 6.1.6 Others

    2. 6.2 Component

      1. 6.2.1 Hardware

      2. 6.2.2 Devices

      3. 6.2.3 Software and Services

      4. 6.2.4 Communication and Connectivity

    3. 6.3 End-User Industry

      1. 6.3.1 Oil, Gas and Utilities

      2. 6.3.2 Transportation and Logistics

      3. 6.3.3 Healthcare

      4. 6.3.4 Financial Services

      5. 6.3.5 Manufacturing and Construction

      6. 6.3.6 Others (Environment, Media & Entertainment)

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Ooredoo

      2. 7.1.2 Zain

      3. 7.1.3 IBM Corporation

      4. 7.1.4 Huawei Technologies

      5. 7.1.5 Cisco Systems

      6. 7.1.6 SAP

      7. 7.1.7 Oracle

      8. 7.1.8 HP Middle East

      9. 7.1.9 Amadeus IT Group

      10. 7.1.10 VIVA

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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Frequently Asked Questions

The Kuwait ICT Market market is studied from 2020 - 2027.

The Kuwait ICT Market is growing at a CAGR of >10% over the next 5 years.

IBM Corporation, SAP , Huawei Technologies Co., Cisco Systems, Inc., Oracle Corporation are the major companies operating in Kuwait ICT Market.

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