Home Industry Technology GCC IT spend to reach $20bn by 2024: Roland Berger research Covid-19 pushes IP traffic up more than 30 per cent as services move online by David Ndichu August 20, 2020 A new study by research firm Roland Berger reveals that enterprise IT spend on GCC markets is expected to increase from $16.5bn in 2019 to $20bn by 2024. Sectors such as healthcare, education, media, financial services are expected to accelerate their IT spend growth by 2-3 times over this period, the report adds. Moreover, the top five prioritised emerging use cases – e-consultation, e-health monitoring, e-learning, automated mining, and safety and sanitation – are expected to drive a total market opportunity of $5bn in the GCC by 2024. The report also states that telcos are expected to accelerate investment in 5G and fibre connectivity which is expected to boost their capital expenditure to 23 per cent of revenue by 2021, up from 18-19 per cent in 2019. Read: Sheikh Mohammed says digital economy is next priority for UAE The study estimates investment in 5G can add 6-8 per cent to countries’ GDP combining direct, indirect and induced impacts. To that end, governments will need to support telcos by providing them with temporary monetary relief, drive operational efficiencies as well as support the SME ecosystem, to enable a strong economic recovery and ensure long-term growth. The survey reveals the immense impact of Covid-19 on digital infrastructure – IP traffic has increased significantly and is now stabilising at 30 per cent higher than pre-Covid-19 times. “The Covid-19 pandemic will have a seismic and permanent impact on our lives – work, life and play as we knew it will no longer be the same again,” commented Kushal Shah, senior partner and head of the Digital Practice in Asia from Roland Berger. “Our report studies how Covid-19 has affected economies, businesses and consumers in the Middle East region, and will lead to new, digital-driven use cases emerging in an ICT-led economic recovery. The report also highlights the telco and enterprise IT spend expected over the next few years in the region to drive this recovery as well as the key role that governments and regulators can play in supporting the ICT sector,” he added. Tags 5G Covid-19 digitisation research Roland Berger 0 Comments You might also like 5.5G to usher in a new era of AI-powered intelligence in the Middle East Global airlines poised for 2.7% jump in profit in 2024, says IATA COP28: Voluntary recycling credits initiative launched, first global standard to incentivise recycling EXCLUSIVE: Former World Bank MD says ‘global governance under stress’