Market Trends of Middle East & Africa (MEA) AI, Cyber Security & Big Data Analytics Industry
This section covers the major market trends shaping the MEA Artificial Intelligence, Cyber Security & Big Data Analytics Market according to our research experts:
Rise in the Government initiatives and scalable IT infrastructure
- Africa plays a significant role in the global AI supply chain within the entire market, particularly in the early production phase. Countries, including Egypt, Rwanda, and Mauritius, have published comprehensive AI strategies. African governments are ramping up national strategy on adopting Artificial Intelligence (AI) in a new hunt for crucial data that would help improve public service delivery and governance.
- For instance, The National Infrastructure Plan 2050 of South Africa aims to connect all government buildings to high-speed fibre-optic broadband, universal access, and public sector connectivity, relying on the government as the procure and regulator, with SOEs and the private sector implementing, among other such plans.
- Moreover, The Ministry of Communications and Information Technology (MCIT) has been working to create an infrastructure that is secure, dependable, and accessible to complete Digital Egypt and achieve the transition to a digital society. For instance, earlier this year, the Egyptian National Telecommunications Regulatory Authority (NTRA) signed an MoU with the Saudi Communication and Information Technology Commission (CITC) to collaborate and exchange expertise on a variety of topics, including radio spectrum management, smart cities, and capacity building in digital transformation.
- Also, due to growing government expenditures on advanced technology, Saudi Arabia is anticipated to be one of the top nations in the Middle Eastern area in the artificial intelligence and significant data sector. Due to favorable regulations, government financing, and initiatives, Saudi Arabia has evolved into a digital hub and a supplier in the shift to 5G. For instance, STC's Mena HUB, a USD 1 billion investment in infrastructure and connectivity for the area, supports Saudi Arabia's rapidly expanding digital and cloud sector. Also, the country exhibits readiness to adopt AI, and launching the Saudi Vision 2030 plan was regarded as a significant progression in the value of data as a public asset. Around 70% of the 96 strategic goals under Vision 2030 are related to data and AI.
- According to General Authority for Statistics (Saudi Arabia), by 2024, it is expected that Saudi Arabia's optical, electrical, and computer manufacturing will generate around USD 231,7 million in sales. This indicates a drastic growth in the overall IT sector, creating an immense growth opportunity for the market throughout the forecasted period.
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IT & Telecom Sector to Witness Significant Growth
- The adoption of AI is growing in popularity in the region owing to AI-based solutions that can be economically used as a service by enterprises for different purposes. AI is being used across the Middle East telecom industry to design products and services, manage life-cycle, remote and onsite operations, and manage large amounts of data being handled.
- During the last quarter of the current year, the Saudi telecommunications corporation STC formed a new subsidiary, Center 3, which will connect Asia, Africa, and Europe through a regional media centre to boost the Kingdom's digital economy. This will significantly increase the market's growth.
- The growing regional IT industry, along with AI initiatives, is expected to boost the AI market in the industry. Governments in the region are looking to skill the professionals who are part of the IT industry to enhance their presence in the global AI sector. For instance, the UAE government's AI Talent Hunt Program and '1 Million Arab Coders' initiatives are expected to impact market growth positively.
- 5G, with its ultra-high speed and low latency, will support new services for South African consumers, like online augmented reality, virtual reality gaming, and ultra-high definition streaming, while enabling businesses with cloud and artificial intelligence technologies. In the last quarter of this year, South African telecoms operator Telkom announced its partnership with Vodacom and MTN using China's Huawei Technologies technology to launch a 5G high-speed internet network.
- As per Viavi Solutions, Europe, the Middle East, and Africa (EMEA) surpassed Asia as the region with the highest 5G coverage globally as of May of the current year, with about 839 cities having coverage from a 5G network. While 419 cities in the Americas have commercial 5G services, 689 cities in Asia have 5G coverage overall.
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