MENA IT market worth US$13.4 billion by 2008
A new report from IDC covering the Middle East and North Africa (MENA) estimates the region's IT market is set to grow from US$6.9 billion in 2003 to around US$13.4 billion by 2008 with all countries’ expenditure on IT growing significantly in the coming four years.
According to a new report from International Data Corporation (IDC) covering the Middle East and North Africa (MENA), estimates the region's IT market is set to grow from US$6.9 billion in 2003 to around US$13.4 billion by 2008 with all countries’ expenditure on IT growing significantly but with a particularly marked increase in both Saudi Arabia and the Maghreb.
The MENA region, which IDC defines as the Arab Middle East and North Africa, is currently the third fastest growing IT market in the world after India and China.
Additional highlights as of Q2 2004, drawn from IDC’s ongoing IT market advisory services across the MENA region, include: PC shipments to Gulf States are due to cross one million units by the end of 2004 while the total IT services market in MENA is projected to cross US$3.17 billion by the end of 2008.
For the packaged software market, the analyst firm estimates it to surpass $1.86 billion by the same date.
Regarding spending on particular sectors for CY2004, IDC breaks it down as follows - systems: 38%; package software: 14.2%; IT services: 23.7%; networking equipment: 8%; peripherals: 14.1% and external storage: 2%.
The MENA region, according to IDC, is currently growing at around 15%, a figure that has remained reasonably stable over the last three years. Among the key trends that IDC is witnessing in the region is consolidation of servers in the enterprise. “The strategy being adopted by many large organisations in the region is to operate on one large mainframe supported by four to five mid-range servers,” says Jyoti Lalchandani, regional director, IDC, Middle East and North Africa.
Such double-digit growth estimates is translating to good news for IT vendors such as the US$78 billion HP.
“The findings from IDC underscore the dynamism of the regional market and represent both an opportunity and a challenge to HP. We need to build on our leadership position while anticipating the challenges that inevitably result from operating in such a fast-changing market — we are perfectly positioned to capitalise on the rapid expansion in the regional IT market,” adds Joseph Hanania, managing director of HP Middle East.