Market Trends of middle east data center Industry
Growing number of mobile users and expanding 5G population coverage across the regional countries boosts the market growth
- The GCC countries have experienced substantial changes in ICT use over the past two decades, resulting in a considerable impact on the services offered to users due to developing digital infrastructure. Internet and telecommunications services are much more common in the region than they are globally, especially in GCC, with the proportion of internet users to the total population in GCC reaching 98.21%, compared to the global average of 63%, which is practically the highest in all geographic areas.
- In GCC, the total number of mobile users makes up roughly 137.66% of the population, compared to the global average of about 55%. ICT services in the GCC region are developing quickly due to the region's continued influx of new commercial mobile service providers, causing a sharp rise in the number of users. Around two-thirds of wireless network operators in the Middle East launched 5G networks, expanding 5G population coverage across the regional countries. The majority of Middle Eastern countries have already implemented commercial 4G services.
- The increasing OTT consumption also boosted data traffic for each smartphone. For instance, Etisalat released its Life TV iOS app in 2013, a year after MBC's Shahid TV app surpassed it as the most downloaded Middle Eastern app. OSN revealed the debut of Go for non-pay TV users. In the Middle East, there are large regional differences in the accessibility and cost of super-fast networks. The deployment of various OTT platforms and speed improvements may result in a greater demand for rack space, leading to a rise in the number of data centers in the Middle East.
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Prioritizing digital initiatives, such as 5G, digital payment and attracting sizable population of working immigrants boost the market demand
- To shift toward a knowledge-based economy, the UAE and Saudi Arabian governments are prioritizing digital initiatives, such as 5G. Due to state-wide consumer initiatives like digital payment, smartphones are leading the move to a digital lifestyle. The region's quick rebound of business and leisure travel, as well as permissive long-term visa policies like Golden Visas, which are stimulating investments across sectors from real estate to start-ups, are supporting the robust smartphone market recovery in the short term. International events, especially the FIFA World Cup in Qatar in 2022, may also present opportunities for various corporate sectors in neighboring nations.
- Though the region is attracting a sizable population of working immigrants, creating fresh demand for mass-market products, it is extremely wealthy. The Middle East accounts for more than half of global sales value except for Turkey. Apple and Samsung are the market leaders in the smartphone segment, accounting for approximately 96% of shipping volume combined.
- Device activations in the Middle East increased Y-o-Y, growing by an average of 23% in 2022. Larger markets like Iraq and Egypt, which continued to grow despite having enormous current user bases, were the main drivers of this expansion. The amount of raw data is expected to increase due to smartphone penetration and the use of 5G devices. The number of smartphone users may lead to the use of more data and the internet. The need for more data centers and higher regional utilization rates may boost the demand for the servers required to store and process the data.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The increasing investments for the expansion of 5G network by Operators and region vision to grow digital by 2030 drives the growth of the market
- Growing demand for the bandwidth, FTTH penetration, and Government initivatives to develop fiber Deployment drives the growth of the market
- Transition to Fiber and GCC governments initiatives to roll out fiber optic cables nationwide trends boost the market demand
