Summary
The UAE IT Services Market is segmented by service type (IT Infrastructure Services, Cloud Services, Cybersecurity, Application Development & Management, and Managed Services) and by deployment mode (On-Premises, Cloud, and Hybrid). Growing digital transformation initiatives, rising cloud adoption, strong government push for smart services, and increasing cybersecurity investments are driving the growth of the UAE IT Services Market.
Market Overview
UAE IT Services Market Overview
The UAE IT Service Market, valued at AED 65.5 Bn in 2017, grew at a CAGR of 5.5% from 2017 to 2022. It is expected to reach AED 128.7 Bn by 2027, with a projected CAGR of 8.5% between 2022 and 2027. The market is moderately consolidated with the presence of several large established players, and some of the well-established companies in this market include Google, AWS, G42, and Moro.
Taxonomy
UAE IT Services Market Ecosystem
UAE IT Service Market Size (in AED Bn), 2017-2022
The UAE IT Service market, valued at AED 85.6 Bn in 2022, grew with a Compound Annual Growth Rate (CAGR) of 5.5% from 2017 to 2022. Between 2017 and 2022, the USA Loan Aggregator market witnessed significant growth, driven by digital transformation happening in the country. With the increasing digitization and reliance on technology, there is a growing need for robust cybersecurity measures, and the UAE is investing heavily in cybersecurity infrastructure and regulations. Also, AI is a globally trending technology, and the UAE is actively embracing its potential, for example, the UAE government launched its AI strategy in 2017.
UAE IT Service Industry Analysis
UAE IT Service Market Segmentation, 2022
UAE IT Services Market Segmentation by Types of Services (in AED Bn), 2022
In the realm of UAE's IT Services Market in 2022, it's not just about the numbers; it's about the digital adaptation changing the tech landscape. With a whopping AED 85.6 Bn in play, the market is a playground where innovation meets infrastructure. Leading the charge, Cloud Services carve out a sizable AED 20.6 Bn slice, proudly claiming a 24.1% market share by providing major services like hybrid and multi-cloud, serverless computing, AI-powered cloud services, SaaS, and IaaS. Meanwhile, Data Centers aren't far behind, standing tall with a market size of AED 12.6 Bn and a cool 14.7% market share, acting as digital fortresses and silent guardians by providing major services like co-locations. Many other segments like Security, Networking, IT Consulting, AI and others are also contributing in the market with around 10% market share.
UAE IT Services Market Segmentation by End- Users (in AED Bn), 2022
The Government, holding the reins with a market size of AED 17.4 Bn, claims its stake at 20.3%, and the BFSI sector boasts a market size of AED 14.6 Bn, capturing 17% of market share owing to the security and compliance norms and are using public cloud for non-critical applications. Healthcare, a heartbeat in the literal sense, contributes AED 13.8 Bn and commands a 16.1% share, and it's not just medical records: it's a healthcare tech opera, harmonizing data for a healthier society. Together, these three giant end users – Government, BFSI, and Healthcare – hold the key to the UAE's IT Service Market, showcasing that in the world of IT Services it’s about innovation in every sector.
UAE IT Service Future Market Size
The UAE IT Service Market, expected to reach AED 128.7 Bn by 2027, grew with a Compound Annual Growth Rate (CAGR) of 5.5% from 2022 to 2027. Between 2022 and 2027, the UAE IT Service Market witnessed significant growth, driven by emerging 6G, the use of AI across various sectors, and government initiatives. With AI and automation technologies gaining traction in the UAE across sectors including education, healthcare, and banking, the ecosystem continues to advance rapidly. Also, Etisalat's ambitious plans for 6G implementation and its upgrade of the Research and Development (R&D) center in the UAE will have significant positive impacts on the IT sector.
UAE IT Services Market Macro Indicators
The inflation rate of the UAE experienced fluctuation from 2017 to 2022, reflecting economic dynamics and policy adjustments during this period.
UAE's Nominal GDP (USD Bn) by Sector exhibited dynamic growth from 2017 to 2022, reflecting a diversified economy resilient across industries.
Comprehensive data on the 2022 total population by Emirates, presented in millions, offers a nuanced understanding of demographic distribution in the region.
Frequently Asked Questions
Find quick answers to common questions about the UAE IT Service Market