Market Trends of Bahrain ICT Industry
This section covers the major market trends shaping the Bahrain ICT Market according to our research experts:
Growing demand for Cloud Technology
- Bahrain's ICT industry is driven by the significant increase in private and state investment, rising consumer spending, and increasing demand for cloud services. For Instance, The Information & eGovernment Authority (iGA) of the Kingdom of Bahrain demonstrated its cloud migration experience at Amazon Web Services (AWS).
- For Instance, Bahrain's ministry of transportation and telecommunications announced plans to establish the region's first data center park in collaboration with STC Bahrain. The increasing infrastructure development will increase demand for cloud computing technology adoption, creating new growth opportunities for the Bahrain ICT market.
- Key players in the ICT market upgrade their existing technology with cloud computing solutions primarily drives the market growth. For Instance, the AWS Middle East (UAE) Region, which joins the AWS Middle East (Bahrain) Region, consists of three availability zones and offers clients more excellent options and flexibility in using advanced technologies from the world's top cloud provider. The collaborations will accelerate digital transformation and serve as a benchmark for other regional public sector organizations.
- Furthermore, the increasing investments by the government in promoting numerous technology development, such as 5G, AI, IoT, machine learning, Big Data, etc. Additionally, the digital transformation emergence is expected to drive the Bahrain ICT market growth. For Instance, The Information and eGovernment Authority (iGA) signed a memorandum of understanding (MoU) with Microsoft and ICT training provider Thinksmart to upskill government employees to meet the challenges posed by the global digital economy.
- Globalization in this region and the growing need for adopting advanced technologies such as Cloud, IoT, and artificial intelligence are boosting the market's growth. According to the IMF, Bahrain's GDP will be USD 53.14 billion by 2027. It indicates that the GDP is growing, and the development of the Bahrain ICT market is expected to grow over the next five years.
Understand The Key Trends Shaping This Market
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The IT and Telecom Sector is Expected to Drive the Market
- The increasing IT and Telecom infrastructure investments are driving the ICT market growth. For Instance, Batelco and Ericsson have signed a Memorandum of Understanding (MoU) to collaborate on next-generation 5G technologies and innovations such as voice-over new radio, advanced charging systems, cloud-native 5G core, and NB-IoT for smart city development. Such initiatives will bring new growth opportunities for the Bahrain ICT market.
- Cyberattacks are expected to continue to grow over the next five years. Advancements in IT operations will prevent the ICT market from cyberattacks. For Instance, Stc Bahrain is the first telecom provider in Bahrain to provide SMEs with seamless cloud-based cybersecurity protection. Such initiatives will bring new growth opportunities for the Bahrain ICT market.
- The transition to 3G, 4G, and 5G is still rising in the country due to expanding new networks and increasing demand for high-speed connectivity services. For Instance, Bahrain's Telecommunications Regulatory Authority (TRA) made part of the C-band spectrum available for 5G private networks in line with the goals outlined in its Workplan for the 2022-2023 period.
- The telecom industry growth is mainly due to the increasing population with the rising broadband services adoption in the country. According to the Ookla Speedtest Global Index, Bahrain ranked 84th with a median fixed broadband download speed of 48.32 Mbps in November last year. Fixed broadband services penetration is growing significantly and thus increasing the demand for the telecom services sector.
