BMI View: Egypt's economy does not rely on commodities and as such was one of the stronger performingemerging markets for IT spending in 2015, but with the economically important tourism industry facing aloss of confidence and local currency depreciation against the US dollar in 2016, we expect a decelerationin spending growth. The outlook is nonetheless still positive for medium-term performance, and we envisageIT spending will increase at a CAGR of 11.5% over 2016-2020. Rising household incomes trends withpositive demographic trends, both in the context of low device penetration rates - alongside themodernisation momentum in the enterprise market underpin our positive view of growth potential inEgyptian IT spending.
Latest Updates & Industry Developments
- Computer hardware sales will increase from EGP9.0bn in 2016 to EGP12.6bn in 2020, a compoundannual growth rate (CAGR) of 8.9%. Educational procurement, and retail spending as incomes rise, willdrive growth as vendors target significant number of first-time buyers as reflected in low PC penetrationrates.
- Software sales are forecast to grow from EGP3.4bn in 2016 to EGP5.6bn in 2020, a CAGR of 13.8%.Software market is low-value in Egypt, but modernization pressures will drive investment by both largeenterprises and SMEs over the medium term.
- IT services sales are predicted to rise from EGP4.9bn in 2016 to EGP8.4bn in 2020, a CAGR of 14.6%in local currency terms. There is potential to target both rising public and private sector demand for cloudservices, while the growth of the outsourcing industry is a specific area vendors can target.
Table Of Contents
Egypt Information Technology Report Q3 2016 BMI Industry View 7 SWOT 9 Industry Forecast 11 Latest Updates 11 Structural Trends 11 Table: Enterprise Trends - GVA By Vertical (Egypt 2015-2020) 15 Table: IT Industry - Historical Data And Forecasts (Egypt 2013-2020) 16 Industry Risk Reward Index 17 Table: Middle East and Africa IT Risk/Reward Index, Q3 2016 20 Market Overview 21 Recent Developments 21 Hardware 21 Software 27 Cloud Computing 31 Services 35 Industry Trends And Developments 40 IT Hardware Trade 40 Table: Africa IT Hardware Trade 40 Table: Egypt IT Hardware Trade, 2010-2015 41 IT Industry Analysis 42 Regulatory Development 45 Table: Government Authorities 45 Competitive Landscape 50 Retailers 50 Table: Selected Electronics Retailers 50 Table: Selected Online Retailers 50 IT Companies 51 Table: Samsung Electronics 51 Table: Benha Electronics (Katron) 52 Table: Egabi 53 Table: IT-Blocks 53 Table: ITWorx 54 Table: VertiKa Programming 55 Regional Overview 56 Demographic Forecast 60 Demographic Outlook 60 Table: Population Headline Indicators (Egypt 1990-2025) 61 Table: Key Population Ratios (Egypt 1990-2025) 61 Table: Urban/Rural Population and Life Expectancy (Egypt 1990-2025) 62 Table: Population By Age Group (Egypt 1990-2025) 62 Table: Population By Age Group % (Egypt 1990-2025) 63 Methodology 65 Industry Forecast Methodology 65 Sources 67 Risk/Reward Index Methodology 67 Table: IT Risk/Reward Index Indicators 68 Table: Weighting Of Components 69