Market Trends of Morocco ICT Industry
Rising Digital Transformation across Industries is Driving the Market
- Businesses in various sectors are increasingly adopting digital transformation to remain agile in the evolving landscape, driving the demand for ICT solutions. These solutions, which include automation, data analytics, and e-commerce, are becoming essential. The emphasis on telehealth has led to a rise in virtual consultations, remote patient monitoring, and e-health services, creating opportunities for health-tech startups to develop innovative solutions.
- Morocco is witnessing a rise in urbanization, demanding various services such as e-commerce and online banking, among others. Amid increasing urbanization, the country is enhancing its adoption of digital technologies, advancing smart city projects, and implementing government initiatives to improve digital access.
- According to the High Commission for Planning, the number of urban households in Morocco has increased over the years; in 2020, it was 5,811 thousand, which grew to 6,339 thousand in 2023. Such an increase in urban households is creating more demand for robust ICT infrastructure.
- Owing to the country's rapid developments, global companies have an opportunity to expand their services in Morocco. In February 2024, US companies were invited to participate in a public business briefing organized by the US Trade and Development Agency (USTDA) in Austin. The event aims to shed light on Morocco's procurement priorities, highlight forthcoming commercial prospects, and facilitate direct interactions. Delegates can engage in one-on-one sessions with US companies, offering them a platform to showcase their e-government solutions.
- Global players are expanding their services in Morocco to offer advanced capabilities in order to provide robust cloud services. For instance, in April 2024, Inetum announced a strategic partnership with SAP in Morocco, utilizing its global expertise in SAP S/4HANA Public Cloud to deliver quick, efficient, and secure implementations. This collaboration aims to enhance Inetum's SAP offerings in Morocco by leveraging its worldwide capabilities.
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IT and Telecom Sector is Expected to Increase the Market Demand
- Trends such as 5G, augmented reality, Blockchain, and artificial intelligence are expected to transform IT service offerings. As 5G technology approaches, businesses are preparing to establish on-site networks. This digital revolution enables the creation of new networks using local frequencies or the upgrade of existing networks to LTE. This trend requires the development of real-time IT hubs to support the automation and autonomy of complex systems.
- The government is actively involved in providing enhanced connectivity services for its citizens. Morocco announced a new program to bring internet access to 1,800 rural areas in May 2024, marking a significant step in its National Plan for the Development of High and Very High-Speed Broadband. This program aligns with Morocco's soon-to-be-launched National Digital Development Strategy 2030. The strategy also includes the introduction of 5G technology, which is expected to play a key role in the country's modernization.
- Major technology players are expanding their offerings in Morocco to reach and gain a wider customer base and provide smooth communication capabilities. In October 2023, Huawei OptiX Club launched its Mini Fiber To The Office (FTTO) solution in Casablanca. This innovative solution is tailored to cater to the networking needs of small and micro campuses, promising high-quality campus networks. Leveraging fiber as its communication backbone, the FTTO solution stands out for its streamlined deployment, simplified operation and maintenance (O&M), and enhanced user experience.
- According to GSMA, Morocco's median upload speed increased significantly, rising over 22 times to 19.09 Mbps in Q3 2023. The country has 730,000 FTTH/B connections, highlighting a growing demand for advanced IT and telecom services to provide enhanced connectivity solutions to customers.
