ICT spending in Kuwait is estimated to grow at a compound annual growth rate (CAGR) of 10.2% between 2019 and 2024, reaching US$10.1bn by 2024. Growth will be driven by the increasing adoption of advanced technologies including artificial intelligence (AI), big data, cloud computing and Internet of Things (IoT), according to GlobalData, a leading data and analytics company.
Anshuma Singh, Technology Analyst at GlobalData, comments: “Kuwait Government’s continued emphasis on the digital transformation of both public as well as private sector services meaning that mobility, cloud computing, data and analytics, and storage will witness high adoption in the coming years.”
Kuwait’s energy sector will contribute the largest share to the IT revenue market until 2024, accounting for ~45% of the overall spend in the country. The sector has been continuously focusing spends on implementing advanced technologies to boost output and to reduce emissions, especially in the oil & gas and petrochemical sector. Furthermore, the growing adoption of connected and IoT devices in the sector are significant factors that are likely to boost the adoption of IT solutions in Kuwait in the forthcoming years.
Additionally, the rising adoption of fintech solutions in Kuwait is another major factor that will aid the growth of IT in the country. Major Kuwaiti banks such as Al Ahli Bank of Kuwait and Burgan Bank are focusing on tech-based solutions, such as wallet solutions and digital payment applications.
Among IT solutions, mobility spending in Kuwait is estimated to witness the highest CAGR of 20.5% during the period 2019-2024, while data and analytics is expected to grow at a CAGR of 18.5%.
Anshuma explains: “Growing adoption of advanced technologies for mobile content management and mobile device management among enterprises will fuel mobility solution’s revenue growth. Similarly, the strong demand for data and analytic tools among large enterprises and small and medium enterprises (SMEs) to boost their operations and monetize data-driven businesses and operational models, will drive the data and analytics revenue over the next five years.”
Cloud computing revenues in Kuwait is expected to grow at a CAGR of 18.6% during the forecast period to reach US$1.6bn by 2024. Increased focus on digitalization by enterprises, primarily among retail banking, government and energy, will contribute to the growth of cloud computing in the country. For instance, Bank of Bahrain and Kuwait partnered with AWS in 2019 to digitalize its banking processes, aiming to enhance the customer’s banking experience, operational effectiveness and reduce risks through digitization and automation.
Anshuma concludes: “Enterprises in Kuwait are expected to continue their focus on acquiring high-end enterprise solutions and modernizing their existing IT infrastructure. Additionally, the rollout of 5G technology is expected to contribute to the digital transformation and provide new opportunities for verticals such as retail banking, media and entertainment for which speed and connectivity is a key factor of growth.”