Technology, Media & Telecommunications 2015 trends and drivers

3d prinitngThe Deloitte Technology, Media & Telecommunications (TMT) Predictions report reveals the latest trends and emerging issues shaping the TMT industries across the region in the year ahead and beyond and provides a point of view on key industry trends and the drivers behind major inflection points and milestones.

  • Technology

The Internet of Things really is things, not people

IoT adoption in the region is still relatively nascent, but some enterprise applications have started to take hold. We estimate the Middle East to currently represent about 2-3 percent of the global enterprise IoT market and predict that around 25 million IoT devices will be shipped to the region in 2015, leading to an installed base of around 70 million IoT devices.

3D printing is a revolution: just not the revolution you think

The revolution of 3D printing has extended into the Middle East. The region represents a small fraction of the global 3D printing market as a relatively immature market with a limited design and manufacturing industry. However, the Middle East is expected to witness an increase of almost 60 percent per annum in 3D printer units and almost 30 percent per annum in 3D printing revenues until 2017 – albeit off a low base.

Data opens up in the GCC

We predict that GCC countries will make significant open data advancements in 2015, and within the next three to five years, break into the top half of countries ranked the most ‘open’ in the world. Although the Gulf countries will take some time to match the level of leading ‘open’ countries to reap the benefits of open data, 2015 will represent a key milestone of actions implementing major national open data announcements made in 2014.

Smart cities…not just the sum of its parts

We predict that the number of new smart city greenfield developments in the GCC will double within the next two to three years. This follows the launch of six entirely new, master-planned smart city developments in the GCC over the past decade. The region’s smart city growth will largely be driven by developments in the government planning, administration, and operations area, backed by significant GCC government investments in e-government and mobile services.

The re-enterprization of IT

In the Middle East, we predict that in 2015 the pendulum of IT adoption will not only swing back towards the reenterprization of IT, but will move faster and deeper than the rest of the world. Consumerization has been rapid, and will coexist with enterprization as a driver to the region’s technological development, even leading in certain areas. But the scale of development in the enterprise space, backed by large corporate and government expenditure, will be the region’s biggest driver.

  • Media

Digital Islamic Services: set for take off

We predict that 2015 will be the year that Digital Islamic Services start to take off across the Middle East region and the world. We estimate within the next three to four years the region’s Digital Islamic Economy to nearly double in size in terms of online Muslim consumer spend on lifestyle products and services, from around $15 billion currently to touching and probably crossing US$30 billion by 2018.

Short form video:  a future, but not the future, of television

We predict that in 2015, total time spent watching short-form video online in the Middle East will represent under three percent of all video watched locally on all screens. On average, the region’s viewers will consume an estimated 545 million hours per month of short-form video in addition to watching over 23 billion hours per month of traditional long-form television.

The ‘generation that won’t spend’ is spending a lot on media content

We predict that millennials in the Middle East will spend up to $37 billion on media content in 2015 ($300 per millennial, in purchasing power parity terms). High rates of smartphone adoption, broadband, technological advancements and increasing literacy rates play a key role in the growth of media consumption in the Middle East in 2015 and beyond.

  • Telecommunications

One billion smartphone upgrades

In 2015, we expect Middle East region sales from smartphone upgrades will surpass 70-100 million units for the first time, generating over $18-28 billion in revenues. The majority of upgrades will take place in the GCC, which has the highest penetration levels, whereas in large parts of North Africa, many will be new adopters, buying a smartphone for the first time.

Mobile government: a new mode of public engagement

We predict the number of mobile government (m-gov) smartphone applications across the Middle East region to surpass 500 apps by 2016. This follows a sharp increase in m-gov services development in the region, which saw the number of m-gov smartphone applications increase from close to 200 apps in 2013 to over 400 apps in 2014.

The connectivity chasms deepen:  the growing gap in broadband speeds

In 2015, we expect total internet penetration in the Middle East to reach around 38 percent. Fixed broadband penetration however, is expected to reach over 21-22 percent of all Middle East households. Fixed broadband penetration rates vary significantly across the region due to high economic disparity – particularly when comparing GCC countries to those in North Africa where dial-up connections are more common.

 by: Santino Saguto, partner and TMT leader at Deloitte Middle East

The views and opinions expressed herein do not represent nor reflect those of Deloitte. Deloitte shall endeavor, as reasonably as possible, to screen such information which is obtained, to the best of Deloitte’s knowledge, from reliable source. As such, Deloitte cannot guarantee the accuracy of the information featured nor the validity of the opinions and/or analysis and interpretation expressed herein. Opinions, conclusions and other information in this interview/article which have not been delivered by way of the business of Deloitte are neither given nor endorsed by it.

This article contains general information only, and neither DTME, DTME affiliates nor any of Deloitte Touche Tohmatsu Limited member firms are, by means of this article, rendering any accounting, business, financial, investment, legal, tax, or other professional advice or services of any nature whatsoever. Information included in the 
article is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. None of Deloitte Touche Tohmatsu Limited, its member firms, or its respective affiliates shall be responsible for any loss or damages whatsoever sustained by any person who relies on this publication.

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