ICT spending across Middle East, Turkiye and Africa to top $234 bn

Spending on information and communications technology (ICT) across the Middle East, Turkiye, and Africa (META) will increase 3.9 percent to $233.8 billion in 2023, according to IDC.
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IDC expects telecommunications services spending to increase 3.6 percent in 2023 to $133.9 billion, with IT spending set to grow 4.3 percent to $99.9 billion.

IDC forecasts that digital transformation spending in the META region will top $48.8 billion in 2023 and accelerate at a compound annual growth rate (CAGR) of 16 percent over the coming years to cross the $74 billion mark in 2026.

Digital transformation spending as a share of overall IT spending will be reaching 43.2 percent in 2026, up from 29.4 percent in 2021.

“The region will continue to face several headwinds throughout 2023, including volatile demand, high inflation, interest rate hikes, supply chain uncertainties, and currency fluctuations,” says Jyoti Lalchandani, IDC’s group vice president and regional managing director for the META region.

IDC’s predictions for the META region in 2023

Spending on public cloud services will grow at 25.0 percent to surpass $10.4 billion in 2023.

SaaS apps will account for 43.2 percent of public cloud software spending in 2023, with IaaS constituting 24.5 percent and systems infrastructure SaaS and PaaS making up 18.1 percent and 14.2 percent, respectively.

Cloud managed services will grow 16.1 percent to surpass $1 billion in 2023 and $1.4 billion by 2025.

Spending on big data analytics will grow 11.4 percent to top $4.1 billion in 2023.

Spending on AI will grow 16.3 percent to reach $7.9 billion in 2023.

Spending on RPA software will grow 34.5 percent to surpass $192.7 million in 2023.