MEA Digital Transformation Market: Current Analysis and Forecast (2021-2027)

MEA Digital Transformation Market was valued at US$ 91.3 billion in 2020 and is anticipated to reach US$ 253.5 billion by 2027 displaying an elevated CAGR of 15.89% over the forecast period (2021-2027). Digital transformation is the incorporation of digital technologies into all areas of a business, fundamentally changing how organizations operate and deliver value to customers. It affects all sectors of society. Companies are looking it as an opportunity to radically change their business models by new digital technologies such as social media, smartphones, big data, the Internet of things, and others including AI and blockchain.
Digital transformation is imperative to all businesses, whether small or big. The integration of digital technologies is reshaping every industry, several companies are doing large-scale change efforts in order to capture the benefits of the ongoing digital transformation trend or simply keep up with their competitors. For instance, according to a survey, 82% of large enterprises across the region have launched AI programs by the end of 2019 reflecting the widespread adoption of AI among large companies. While the speed of adoption slightly lags in other regions, 25% of the respondents expect AI to power more than 30% of their business processes in the next 3 years. Furthermore, many organizations are also adopting digital operating models owing to the numerous benefits associated with them.
Another factor driving the growth of the digital transformation market in the MEA region is the Increasing smartphone users & rapid internet penetration. For instance, as of April 2019, the internet penetration rate in the Middle East was 67.2%, while the internet penetration rate for the rest of the world was around 56.8%. Furthermore, Government, including in the GCC, is now embracing industry 4.0, the next industrial revolution based on digital transformation and has formulated various ICT transformation programs and digital-ICT-first sub-strategies across the region. For example, the UAE ICT 2021 Strategy and UAE National Innovation Strategy prioritize digital technology as one of the top seven national sectors, including the application and rapid adoption of new disruptive technologies across sectors.
IBM Corporation, Cognizant, SAP SE, Dell Corporation, Microsoft Corporation, Adobe Systems Incorporated, Accenture PLC, Capgemini, Oracle Corporation, and Google Inc are some of the prominent players operating in the MEA digital transformation market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.
Insights Presented in the Report
“Amongst component, Solution segment holds the major share.”
Based on the component, the MEA digital transformation market is bifurcated into Solutions and Services. The solution sub-segment is further divided into cloud computing, big data and analytics, mobility, disruptive technology, and social media. Moreover, the Service segment is divided into professional services and system integration. The solution segment dominated the market in 2020. However, the Service segment is expected to witness the highest CAGR growth of 14.9% during the forecast period (2021-2027) owing to the continuously increasing investments in hardware & services across the region.
“Amongst deployment type, cloud dominated the market in 2020.”
Based on Deployment type the market is segmented into On-premises and cloud deployment. The cloud deployment model dominated the market and generated revenue of US$ 50.7 billion in 2020. For instance, in Dubai, more than 70% of startup entities use cloud computing technology in 2019.
“Amongst End-user, large enterprises are expected to dominate the market during the analyzed period.”
Based on end-users the MEA digital transformation market is bifurcated into large enterprises and SME’s. Owing to the high cost of digital technology deployment large enterprises invested most in digital technologies and are rapidly deploying disruptive technologies to automate their operation. Thus, the large enterprise segment is expected to grow with a CAGR of 14.97% to reach a market valuation of US$ 153.8 billion by 2027.
“Amongst industry verticals, Banking Financial Services & Insurance dominated the market in 2020.”
Based on industry vertical, the market is fragmented into BFSI, healthcare, telecom & IT, automotive, education, retail & consumer goods, media & entertainment, manufacturing, government, and others. BFSI segment generated the highest revenue of US$ 21.8 billion in 2020. For instance, according to the leading market intelligence firm, 85% of banks in the region integrated AI by 2020 in a bid to streamline know-your-customer procedures.
“Saudi Arabia represents as the largest markets in the MEA Digital Transformation market.”
For a better understanding of the market penetration of digital transformation, the report provides a detailed analysis of major countries including Saudi Arabia, UAE, Qatar, South Africa & Rest of the MEA. Saudi Arabia dominated the MEA digital transformation market by generating a revenue of US$ 22.4 billion in 2020 and is expected to maintain its dominance, owing to its robust infrastructure and government’s Saudi Arabia Vision 2030-key enabler of digital transformation in the country.
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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
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• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive country-level analysis of the industry
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