Market Trends of Kuwait ICT Industry
Early Adoption of 5G Network Drives the Market Growth
- The rapid adoption of 5G would improve connectivity and data in modern society. This would enable support of new applications like augmented reality (AR), virtual reality (VR), self-driving cars, etc. In Kuwait, the market for 5G services is expected to grow over the next five years because more people will want to play video games and because of the Fourth Industrial Revolution.
- ICT spending in Kuwait would be driven mainly by how many people use new technologies like artificial intelligence, cloud computing, big data, and the Internet of Things. Also, the growing use of artificial intelligence (AI) and automation in software, as well as data analytics and big data in end-user industries, will significantly affect the Kuwait ICT market in the next few years.
- More investments and acquisitions in the IT industry will significantly affect the growth of the ICT sector in the coming years. Acquisitions in the industry have led companies to enlarge their scale of operations, increase revenue, and develop expertise. As part of its plan for 2035, the government is also pushing for privatization and has increased its spending.
- Several up-and-coming new businesses in Kuwait are taking advantage of growth opportunities in the ICT sector, especially in advanced technologies. Kuwait is actively capitalizing on rising trends in the healthcare sector. Healthcare institutions are leveraging digital technologies to improve health outcomes and implement innovative care delivery models that fulfill customer expectations while remaining cost-effective.
- Furthermore, the Kuwaiti government's continued emphasis on the digital transformation of public and private sector services means that mobility, cloud computing, data analytics, and storage will witness high adoption in the coming years. All these factors would support the country's ICT market growth.
- Additionally, the increasing use of mobile devices by people and organizations to search for information, use applications for entertainment and communication, and click pictures, among others, means they can also be used to surf the internet, play games, watch movies, and do other related stuff with access to the internet. According to Speedtest, in the previous year, Kuwait had an average connection speed of 95.04 Mbps.
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Mobility Technology is Expected to Hold Significant Market Share
- The increasing penetration of smartphones is expected to propel growth for the ICT market in Kuwait. Technological advancements would increase the country's economic growth and become efficient. Growing gross domestic product (GDP) would drive people to spend more on luxury and comfort; with the enhanced purchasing power, consumers are expected to spend more. In the previous year, Kuwait's population stood at 4.35 million and had 4.31 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 the previous year and is projected to reach USD 183.10 in the forecasted year.
- The increasing use of smartphones, smart wearables, and smart electronics has revolutionized how data is used. The growing amount of data has made it impossible to use it for a data-based decision. This has propelled companies to use artificial intelligence (AI) and big data analytics to extract useful information to make informed decisions and track changing consumer preferences and buying patterns.
- Moreover, the previous year, Zain Kuwait, a technology company, became one of the pioneers in providing Voice over 5G (VO5G) services across the country, making it one of the first global providers to offer such extensive coverage. By leveraging innovative technology, Zain enables customers to enjoy a unique experience with ultra-fast interest access and high-quality Voice calls on compatible cell phones. Further, after rigorous testing to ensure network readiness, Zain has officially launched its commercial service, delivering maximum quality to users.
- Technology start-ups are being encouraged, and the government sees private sector jobs and initiatives as an essential part of the drive to diversify the economy while attracting higher levels of international investment.
