The impact of the emergence of generative AI will reshape the IT landscape of the Middle East, Turkiye, and Africa.
Total spending on information and communications technology (ICT) across the Middle East, Turkiye, and Africa (META) region is expected to exceed $238 billion this year, an increase of 4.5% from 2023.
This is according to the latest forecast report from research firm International Data Corporation (IDC), unveiled at the IDC Directions META event, which brought together more than 400 senior executives at the Dubai International Financial Center last week.
IDC releases regional forecasts for the year ahead, predicting telecommunications service spending in the region will reach $133 billion in 2024, up 5% year-on-year, with IT products and services spending increasing 3.9x It revealed that. This year, it's $105 billion, an increase of % from the previous year.
“As META’s digital economy increasingly takes shape, IDC predicts that digital transformation spending in the region will exceed $59 billion in 2024, accelerating at a compound annual growth rate (CAGR) of 15% over the next few years. We predict it will surpass the $88 billion mark in 2027,” IDC said.
Spending on the following technologies increases overall ICT spending:
- Public cloud spending in the META region will exceed $13 billion in 2024, representing 21% year-over-year growth.
- Software as a service accounts for 59% of this public cloud spending, followed by infrastructure as a service at 23% and platform as a service at 18%.
- Cybersecurity spending is expected to exceed the $6.5 billion level by 2024, outpacing previous growth projections.
IDC further predicts that spending on artificial intelligence (AI) in the region will exceed $3 billion this year, up 32% from 2023.
Jyoti Lalchandani, group VP and MD, META, IDC, explained that organizations' AI investment priorities are likely to evolve over the next few years beyond the initial focus on cost reduction.
“Across the META region, there is clear demand for AI in general and generative AI in particular, with spending on AI projected to reach $6.9 billion by 2027,” Lalchandani revealed.
“However, many organizations are already wondering if they are focusing too much on reducing costs and not enough on how AI can help drive revenue. , expects revenue growth outcomes to take center stage over the next three to five years. The company is working with core buyers to ensure its AI-related products remain aligned with customers' evolving business objectives. We need to closely track this change.”
IDC Global President Crawford Del Prete delivered the keynote address at the event titled “AI Moment: Welcome to the Next Era of Technology,” in which he proclaimed GenAI to emerge as a golden age of innovation. did.
“The impact of the emergence of generativeAI will reshape the IT landscape as companies strive to not only improve productivity but also create new ways to meet customer needs,” Del Prete said. “Increasingly, companies are aggressively investing in GenAI to gain an edge and avoid being left behind. In fact, by 2027, global spending on generative AI will exceed $150 billion and AI-related It is expected to account for approximately 30% of total investment.” ” Thomas Meyer, IDC's group vice president for research in the EMEA region, explained his support mechanisms that technology vendors must put in place for their customers. “As generative AI adoption increases in the META region, technology providers must develop responsible AI strategies.
“As part of this strategy, we must support our customers in raising investment capital and delivering return on investment and significant business outcomes for their prioritized use cases.”
