The Middle East & Africa IoT market is expected to grow from US$ 33.01 billion in 2022 to US$ 138.27 billion by 2028. It is estimated to grow at a CAGR of 27.0% from 2022 to 2028.

Increase in Digitalization Across Industries and Rise in Importance of Service Providers is Driving the Middle East & Africa IoT Market

The growing transition from traditional to digital ecosystems across industries is creating a huge demand for connected ecosystems, resulting in the growing demand for IoT-based solutions. Investments in IoT start-ups and supporting market ecosystems are also bolstering the research and development related to IoT. Moreover, the continuous improvements in cloud infrastructure and reduced data service costs are fueling the digitalization of industrial processes. Furthermore, the increasing number of service providers, such as system integrators, managed service providers, and IoT distributors, plays a key role in installing, managing, and monitoring IoT solutions. The Middle East & Africa IoT market ecosystem involves various intermediaries at every stage of the ecosystem. In addition, system integrators integrate all components into a whole and deliver the integrated systems to retailers. At the same time, managed service providers offer numerous services such as device management, data management, security management, and network management to end users. Thus, an increase in digitalization in different sectors and a rise in importance of service providers are expected to be key trends in the Middle East & Africa IoT market.

Middle East & Africa IoT Market Overview

The Middle East & Africa IoT market is segmented into Saudi Arabia, the UAE, South Africa, and the Rest of Middle East & Africa. The Middle East is a dynamic and rapidly developing region that provides massive opportunities for investors and businesses. IoT adoption is already an integral part of the digital transformation of the Middle East & Africa. Moreover, organizations across the Middle East & Africa are already using IoT to achieve various objectives ranging from improving asset utilization and managing risks to creating entirely new business models. Increasing usage of smartphones, growing population of young adults in the states of the Gulf Cooperation Council, and rising number of government initiatives for digital transformation to drive economic growth are a few of the major factors propelling the Middle East & Africa IoT market growth in the region. Retail, manufacturing, and automotive industries are using IoT technology to differentiate their existing products or services from the competition, create new products, and provide enhanced customer experiences. Moreover, the ongoing digitization in Africa is leading to the growth of technological developments in the communication, automotive, and manufacturing industries. The integration of IoT and other advanced technologies in infrastructure, healthcare, and automotive industries is projected to grow, owing to the rising demand for streamlining the respective businesses. Rapid urbanization, digitalization, and smart city construction and a surge in penetration of smartphones and other consumer electronic devices are a few of the major factors driving the need for IoT technology in Middle East & Africa. Moreover, IoT is anticipated to reach an installed base of 21.5 billion active connected devices by 2025, according to the IoT Industry Council of South Africa. Thus, the adoption of IoT in consumer electronics, smart cities, smart homes, intelligent industrial applications, and automation is rapidly increasing, which is anticipated to boost the Middle East & Africa IoT market growth.

Middle East & Africa IoT Market Revenue and Forecast to 2028 (US$ Billion)

Middle East & Africa IoT Market Segmentation

The Middle East & Africa IoT market is segmented into offering, end user, and country.

Based on offering, the Middle East & Africa IoT market is segmented into hardware, software, and services. In 2022, the hardware segment registered a largest share in the Middle East & Africa IoT market. The hardware segment is further subsegmented into processors, connectivity modules, sensors, memory devices, and others.

Based on end user, the Middle East & Africa IoT market is segmented into industrial, commercial, and residential. In 2022, the industrial segment registered a largest share in the Middle East & Africa IoT market.

Based on country, the Middle East & Africa IoT market is segmented into Saudi Arabia, the UAE, South Africa, and the Rest of Middle East & Africa. In 2022, the industrial segment registered a largest share in the Middle East & Africa IoT market.

Cisco Systems, Inc.; Google LLC; Hewlett Packard Enterprise Development LP (HPE); IBM Corporation; Microsoft Corporation; Oracle Corporation; QUALCOMM INCORPORATED; SAP SE; SAS Institute Inc.; and VMware, Inc. are the leading companies operating in the Middle East & Africa IoT market.