2013-10-30 09:58:21 - New Computer Technology market report from Business Monitor International: "Kuwait Information Technology Report Q4 2013"
High government expenditure and growing private consumption will be the key drivers in Kuwait's IT market during our forecast period, through to 2017. We forecast the Kuwaiti IT market to expand to KWD278mn in 2013, an increase of 3.9%. The government aims to roll out initiatives across a range of segments of the economy including construction and e-government. We expect higher disposable income levels and the arrival of new IT products and services, including convertible laptops, to boost growth in the consumer segment. However, the extent of this growth may be held back by the government's efforts to trim the country's expatriate workforce.
Headline Expenditure Projections
* Computer Hardware Sales: KWD113mn in 2012 to KWD114mn in 2013, +1.4% in local currency
terms. Relatively low household PC penetration means there is a growth opportunity both in terms of first-time buyers and in the upgrade/replacement market.
* Software Sales: KWD73mn in 2012 to KWD76 in 2013, +5.5% in local currency terms. Growing regional competition is fuelling enterprise spending on software and systems, however it is IT security software and solutions that we expect to outperform as awareness of risks and regional political tensions combine to create fertile growth conditions.
* IT Services Sales: KWD83mn in 2012 to KWD88mn in 2013, a 4.3% increase in local currency terms. Cloud computing, e-government and machine-to-machine services are identified as key growth areas that will make IT services a growth outperformer in the market from 2013 to 2017.
Full Report Details at
- www.fastmr.com/prod/698089_kuwait_information_technology_report_ ..
Kuwait sits in fourth position in our Q4 2013 IT RRR table for MENA with a score of 60.5. Kuwait lies behind Qatar, Israel, and the UAE, but ahead of potentially larger markets such as Saudi Arabia and South Africa.
Key Trends & Developments
BMI believes that over the medium term the IT security software and solutions market is set to boom in Kuwait, and indeed across the Middle East region. This is because critical infrastructure, as well as enterprises and consumers, are exposed to a high incidence of cyber security threats due to escalating political tensions in the region. End-users have an increasing awareness of the threats posed, with an August 2013 survey by Gulf Business Machines showing 71% of IT experts in Kuwait believe the country is a prime target for cyber attacks. This opportunity has lead vendors to target Kuwait and the wider region. For instance, in May 2012, IT consulting firm Booz Allen Hamilton established a local presence in Kuwait in order to secure government and commercial IT security contracts in key sectors such as energy, financial services, healthcare and telecoms.
Meanwhile the ubiquity of high quality connectivity in Kuwait is enabling fast growth for IT services such as machine-to-machine (M2M) and cloud computing. Construction is a promising IT spending vertical, particularly for M2M as there are initiatives in place for 'smart' infrastructure. Meanwhile cloud computing holds great potential in Kuwait, as companies look to modernise and cut costs. We expect cloud services providers will be able to leverage the investments in telecoms infrastructure made by operators in order to achieve fast growth of sales in the short-to-medium term. However, one potential drag on both M2M and cloud computing growth is the risks arising from cyber security, with critical infrastructure a potential target for criminals or foreign states.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: Kuwait IT Industry - Historical Data & Forecasts (KWDmn)
- Table: Telecoms Sector - Internet - Historical Data & Forecast
- Table: Kuwait - Economic Activity
Industry Risk Reward Ratings
- Table: Middle East And Africa Risk/Reward Ratings Q413
Industry Trends And Developments
- Table: IT Regulatory Authorities
- Khorafi Business Machines
- Microsoft Corporation
- Table: IBM Acquisitions, 2012 (Total Value, US$3.964bn)
- Oracle Corp
- Table: Oracle: Selected Acquisitions
- PC Market Feels The Squeeze
- Table: Kuwait's Population By Age Group, 1990-2020 ('000)
- Table: Kuwait's Population By Age Group, 1990-2020 (% of total)
- Table: Kuwait's Key Population Ratios, 1990-2020
- Table: Kuwait's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
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