By Sam Bridge
International Data Corporation says 4.1% rise in spending is being driven by faster connectivity in the Middle East and North Africa
Consumer spending on technology in the Middle East and Africa (MEA) is forecast to rise to $130.8 billion this year, a year-on-year increase of 4.1 percent.
According to latest figures from International Data Corporation (IDC), consumer purchases of traditional and emerging technologies will remain strong over the 2019–2023 forecast period, increasing at a five-year compound annual growth rate (CAGR) of 3.5 percent to reach $149.4 billion in 2023.
It said 86.3 percent of all consumer technology spending in 2019 will be on traditional technologies such as mobile phones, personal computing devices, and mobile telecom services.
Mobile telecom services (voice and data) will account for 68.7 percent of this amount, followed by mobile phones which will account for 26.6 percent. Spending growth for traditional technologies will be relatively slow, with a CAGR of 2.4 percent for the 2019–2023 forecast period.
"Faster connectivity, combined with declining data service costs from telecom service providers and the need for end users to use telecom services for an increasing number of devices, will ensure that consumer spending on traditional technologies will continue to grow," said Fouad Charakla, IDC's senior research manager for client devices in the Middle East, Turkey, and Africa.
Emerging technologies, including AR/VR headsets, drones, on-demand services, robotic systems, smart home devices, and wearables, will deliver strong growth with a five-year CAGR of 10.2 percent, IDC added. This growth will see emerging technologies account for 17.1 percent of overall consumer spending in 2023, up from 13.7 percent in 2019.
Smart home devices and on-demand services will account for around 93 percent of consumer spending on emerging technologies by the end of the forecast period.
"The low penetration of smart home devices in the region, combined with growing efforts from market players to educate home users on the benefits and usage of these devices, will serve as an engine of growth for consumer spending on emerging technologies," said Charakla. "A large portion of end users are already looking to invest in devices that will improve their productivity and quality of life, two key demands that smart home devices can be positioned to fulfil."
IDC said entertainment spending will be dominated by watching or downloading TV, videos and movies, as well as listening to music and downloading and playing online games.retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.