Kuwait Telecom Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Kuwait Telecom Market Analysis
The Kuwait telecom market is expected to grow at a CAGR of 6.5% over the next five years. The telecom industry in Kuwait has expanded to a significant level, with a particular emphasis on mobile infrastructure and services. The importance of the telecommunications industry to the nation's economy is expected to increase in the next few years.
- The Kuwait Vision 2035 program seeks to diversify the economy of the nation. This will continue to open new investment opportunities for telecoms and ICT providers. Telecom companies Would have the chance to provide premium 5G services due to the renovation and extension of the 5G network. Ooredoo/Fastelco customers would have more opportunities to enjoy stable, high-speed connections due to the telecom provider's efforts to extend its fiber optic network to untapped regions of the nation.
- Although the country is moving towards the phase of digital transformation, this could be a bit challenging owing to the need for a specialized skilled workforce. However, the companies are actively addressing the gap through measures to match contemporary education with the market's demands, better technology access, and initiatives to reskill the present workforce.
- Telecom users are evolving quickly, and the amount of 5G traffic has also been steadily growing. The operator has been witnessing a positive increase in revenue and profit. Of late, the 5G networks have received the MNOs' investment attention attributing to revenue growth in recent quarters. According to a report released by Opensignal, Kuwait stands second among the Gulf Cooperation Council (GCC) nations regarding the availability of the 5G telecommunications network, with a rate of 33.6%.
- As a result of the government's National Development Plan - Kuwait Vision 2035 program, which intends to promote advancements and investments in fixed broadband connection, the population's penetration of fixed broadband is expected to rise in the future years. Substantial increases in FTTH/B and set wireless subscribers would also raise the country's fixed broadband penetration rate. The primary source of the rise in fixed voice is VoIP services offered by telecoms through fixed broadband networks. For the forecast period, both phone and broadband lines would rise. This uptick is attributable to the nation's expanded fiber network.
- Compared to most Middle Eastern nations, Kuwait has made significant progress toward integrating telecom into a society based on the facts that are currently available. The country's high mobile phone connections (1.6 to 1.8 phones per person on average), comprehensive 5G mobile coverage, and practically universal rates of internet access (99%) and social media activity (99%) are a few of its standout characteristics. According to the Kepios report, in Kuwait, 4.31 million people used the internet in January this year, depicting that 99.0% of people had access to the internet. Kuwait had a 54 thousand (+1.3%) growth in internet users year over year.
- The COVID-19 problem has significantly impacted several businesses in the nation, although the Kuwaiti telecom industry remained mainly unaffected or even expanding the internet. The crisis has dramatically accelerated Kuwait's economy's digital transition. Due to an increase in data traffic, telecom providers' operations have grown. The e-payment sector, like teleconferencing and e-health, has seen a significant uptick in activity since the outbreak, escalating the demand for smartphones and digital services across the country. Furthermore, the Kuwaiti government tried to manage this exceptional circumstance and steer the nation's economic recovery, prioritizing involvement with and growing the private sector, much like other nations.
Kuwait Telecom Market Trends
This section covers the major market trends shaping the Kuwait Telecom Market according to our research experts:
Moving Towards New Digital Kuwait
- Kuwait may have been more slowly adjusting to the non-oil economy than nations like the UAE and KSA, but it has undoubtedly begun its journey in that direction. The Kuwaiti government revealed the Vision 2035 and National Development Plan for Kuwait, dubbed "New Kuwait," in January 2017. The telecom operators across the country are in an advantageous position as there is excellent potential for them to obtain the first-mover advantage to introduce more innovative products and services to the market.
- With digital transformation serving as a central tenet of Kuwait Vision 2035, the nation is concentrating on implementing innovative and digital technologies to innovate its services, propel the economy, and enhance the quality of life while boosting the operational effectiveness and performance of important sectors. This objective has spurred huge investments in Kuwait's telecommunications sector.
- Kuwait has a high rate of mobile adoption, and as fibers are not widely available, cellular devices are mainly used for broadband. This increases the likelihood that 5G would play a key role in supplying the connection to support national-scale digital transformation by businesses as part of Kuwait's ambitious Vision 2035 socioeconomic agenda, often known as "New Kuwait." The nation is second among the Gulf Cooperation Council (GCC) countries in terms of the availability of the 5G telecommunications network, with a rate of 33.6%, and was among the early adopters of the 5G network.
- The internet has changed the telecom industry in several ways, including the commoditization of connectivity, increased competition for operators from international providers of digital content and services (also known as "over-the-top" players), and a switch from onsite to cloud-based subscription models for software delivery. The need for intelligent, dependable, and secure technology services is increasing across all industries, providing firms with opportunities for expansion and diversification. Also, the implementation of IoT in the telecom industry and solutions based on artificial intelligence are anticipated to obfuscate the boundaries between the digital and physical worlds.
- Enterprise demand for digital solutions has increased due to digital transformation, a trend that telecom operators are already leveraging. Demand for cloud, IoT, video, and business communications technologies will surge, fuelling the expansion. Kuwaiti telecommunications now provide various technological solutions in fintech, health tech, and drone technology. Over the next year, it intends to grow into insurtech, connected automobiles, education, gaming, security and surveillance, and oil & gas.
- As per the World Banks report, internet penetration across Kuwait has increased significantly over the past decade. Internet penetration in 2010 stood at 61%, which surged to 82% in 2015. Encouragingly, within five years, the country's internet penetration increased to 99%. The pandemic accelerated global digitalization and highlighted the need for internet access.
Rise in Wireless Penetration
- One of the area's highest phone and internet penetration rates phone and internet penetration rates in the area is found in the Kuwaiti market. The people are educated, youthful, and tech-savvy. Most have access to social media and other platforms, which allows them to obtain and use much digital information. Due to the factors above and Kuwait's potential for e-commerce and technology, businesses and organizations have begun to transition to digital marketing to promote their goods and services.
- Regarding the population's interest rate for mobile phone use, Kuwait has an influential position globally. At the beginning of the current year, Kuwait had 6.51 million mobile connections, according to data from GSMA Intelligence. Kuwait's mobile relations in January this year amounted to 149.5% of the country's entire population. However, per the data, Kuwait saw a 522 thousand (-7.4%) decrease in mobile connections between last and current year. Kuwait's mobile phone penetration as a percentage of the population historically peaked in 2014 at 206%.
- Mobile applications have recently made significant strides in providing services in many different fields, indicating a critical role in improving people's lives. Applications for mobile devices are becoming useful tools for enhancing social connections, internet interactions, and transactions by making them richer and more detailed. With the help of the average overall download speed in the country, people can easily access the most important sites required. Using various applications through smartphone technology has made several new services available, such as 2-way data transfer, e-payment, e-health services and etc.
- The number of unique mobile subscribers in MENA reached a significant height during the Covid 19 pandemic, representing around 65% of the population. According to GSMA, the mobile market in the region would reach several milestones over the next five years, with more than half of the population subscribing to mobile internet services by next year and 700 million mobile connections by 2025. These achievements will be underpinned by operators' continued investments in network infrastructure. Encouragingly smartphone penetration continues to grow. Some carriers have released inexpensive smartphones to encourage mobile broadband use, some with financing possibilities. In MENA, there would be approximately 200 million more smartphone connections during the following five years, bringing the total to 565 million by the end of 2025 - an adoption rate of nearly 80%, states the GSMA report.
- In MENA, more than two-thirds of the population would use mobile services by 2025, according to GSMA. Additionally, the area anticipates a rise of almost 60 million additional mobile customers for the forecast period.
Kuwait Telecom Industry Overview
The Kuwait telecom market is consolidated, with few players capturing a significant market share. Some major players in the market are Mobile Telecommunications Company (Zain Kuwait), Wataniya Telecom (Ooredoo Kuwait), Kuwait Telecommunications Company (STC Kuwait), and other fixed-line service providers.
In August 2022, Ooredoo Kuwait notified of the opening of three brand new stores. The expansion of Ooredoo's presence in Kuwait is a component of the company's goal to give all its customers easily accessible, personalized services that would improve their telecom experience.
In July 2022, Kuwait Telecommunications Company (STC) announced the deployment of a fully converged core 5GC network in the country. With this news, new avenues have been opened, new services will be available to clients, and businesses will have more chances to provide cutting-edge customer care. The company's ability to serve clients considering a path of digital transformation has been expanded thanks to the converged core solution implemented by STC Kuwait.
Kuwait Telecom Market Leaders
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Mobile Telecommunications Company (Zain Kuwait)
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Wataniya Telecom (Ooredoo Kuwait)
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Kuwait Telecommunications Company (STC Kuwait)
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Gulfnet Communications Company, W.L.L.
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Zajil International Telecom Company W.L.L.
*Disclaimer: Major Players sorted in no particular order
Kuwait Telecom Market News
- In July 2022, Kuwait's top digital service provider, Zain, unveiled the launch of next-generation Fiber-to-the-Room (FTTR) technology. With this launch, the company becomes the first telecom provider in Kuwait to introduce this ground-breaking technology to the local market. FTIR allows customers to enjoy digital entertainment services at the highest possible quality without interruptions.
- In May 2022, Zain Kuwait disclosed the voice-over 5G services launch. As a result, Zain becomes the first international telecom provider to roll out widespread Vo5G service across Kuwait. Customers of Zain can use compatible cell phones to make voice calls and high-speed internet access.
Kuwait Telecom Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Ecosystem Analysis
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4.3 Industry Attractiveness-Porter's Five Force Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 COVID-19 Impact on the Industry Ecosystem
- 4.5 Regulatory Landscape in the Country
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Accelerating Digital Transformation
- 5.1.2 High Wireless Penetration
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5.2 Market Restrain
- 5.2.1 Skill Gap In the Workforce
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5.3 Analysis of the Market based on Connectivity (Coverage to include In-depth Trend Analysis)
- 5.3.1 Fixed Network
- 5.3.1.1 Broadband (Cable modem, wireline-fiber, wireline DSL, fixed Wi-Fi ), Trends regarding ADSL/VDSL, FTTP/B, cable modem, FWA, and 5G FWA )
- 5.3.1.2 Narrowband
- 5.3.2 Mobile Network
- 5.3.2.1 Smartphone and mobile penetration
- 5.3.2.2 Mobile Broadband
- 5.3.2.3 2G, 3G, 4G and 5G connections
- 5.3.2.4 Smart Home IoT and M2M connections
- 5.4 Analysis of Telecom Towers (Coverage to include in-depth trend analysis of various types of towers, like, lattice, guyed, monopole, and stealth towers)
6. MARKET SEGMENTATION
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6.1 Segmentation by Services (Coverage to include Average Revenue Per User for the overall Services segment, Market size and Estimates for each segment for the period of 2020-2027 and in-depth Trend Analysis)
- 6.1.1 Voice Services
- 6.1.1.1 Wired
- 6.1.1.2 Wireless
- 6.1.2 Data and Messaging Services (Coverage to include Internet & Handset Data packages, Package Discounts)
- 6.1.3 OTT and PayTV Services
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Mobile Telecommunications Company (Zain Kuwait)
- 7.1.2 Wataniya Telecom (Ooredoo Kuwait)
- 7.1.3 Kuwait Telecommunications Company (STC Kuwait)
- 7.1.4 Gulfnet Communications Company, W.L.L.
- 7.1.5 Zajil International Telecom Company W.L.L.
- 7.1.6 Mobile Systems International Consultancy Kuwait
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityKuwait Telecom Industry Segmentation
Telecom or Telecommunication is the long-range transmission of information by electromagnetic means.
Kuwait's Telecom Market includes in-depth trend analysis based on connectivity like Fixed Networks, Mobile Networks, and Telecom Towers. The telecom services are divided into Voice Services (Wired and Wireless), Data and Messaging Services, and OTT and PayTV Services. Several factors, including an increasing demand for 5G, likely drive the adoption of telecom services.
The market sizes and forecasts regarding value (USD million) for all the above segments are provided.
| Segmentation by Services (Coverage to include Average Revenue Per User for the overall Services segment, Market size and Estimates for each segment for the period of 2020-2027 and in-depth Trend Analysis) | Voice Services | Wired |
| Wireless | ||
| Segmentation by Services (Coverage to include Average Revenue Per User for the overall Services segment, Market size and Estimates for each segment for the period of 2020-2027 and in-depth Trend Analysis) | Data and Messaging Services (Coverage to include Internet & Handset Data packages, Package Discounts) | |
| OTT and PayTV Services |
Kuwait Telecom Market Research FAQs
What is the current Kuwait Telecom Market size?
The Kuwait Telecom Market is projected to register a CAGR of 6.5% during the forecast period (2024-2029)
Who are the key players in Kuwait Telecom Market?
Mobile Telecommunications Company (Zain Kuwait), Wataniya Telecom (Ooredoo Kuwait), Kuwait Telecommunications Company (STC Kuwait), Gulfnet Communications Company, W.L.L. and Zajil International Telecom Company W.L.L. are the major companies operating in the Kuwait Telecom Market.
What years does this Kuwait Telecom Market cover?
The report covers the Kuwait Telecom Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Kuwait Telecom Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the opportunities for 5G technology in the Kuwaiti Telecom Market?
The opportunities for 5G technology in the Kuwaiti Telecom Market are a) Increased connectivity b) Potential for IoT c) Smart city applications
What are the regulations for foreign companies entering the Kuwaiti Telecom Market?
The regulations for foreign companies entering the Kuwaiti Telecom Market are a) Partnering with local companies b) Complying with data privacy regulations
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