Research Press Release (Doc #prCEMA40902716 / Jan 7, 2016)
Opportunity Knocks as ICT Vendors Gear Upfor Unprecedented Growth in Iran

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Dubai, November 18, 2015 – The easing of sanctions against Iran could see the country become the fastest-growing ICT market in the Middle East, Turkey, and Africa (META) over the next five years, according to the latest forecast from International Data Corporation (IDC). The global technology consulting firm has been gauging the Iranian ICT market's prospects since the announcement in July of a Joint Comprehensive Plan of Action (JCPOA) between Iran and the so-called P5+1 countries, and it believes the lifting of various U.S., United Nations, and European Union sanctions has the potential to shake up the dynamics of the META ICT market.

"While final approvals are still needed from the International Atomic Energy Agency (IAEA), the lifting of sanctions on Iran will open up a large market of nearly 80 million people and drive huge demand for consumer IT solutions," says Jyoti Lalchandani, group vice-president and regional managing director of IDC Middle East, Africa, and Turkey. "At present, the supply of consumer hardware to Iran is largely driven by re-exports from resellers in the UAE, but the easing of sanctions will enable vendors to start building official channel ecosystems in Iran, ultimately leading to a decline in the import of gray market goods."

IDC expects demand for enterprise hardware in Iran to be fueled by the public, telecommunications, energy, finance, and manufacturing sectors. The need to scale up and modernize the country's existing infrastructure landscape will drive demand for integrated systems, while businesses may choose to leapfrog and build out more optimized, software-defined datacenters. Iran currently has a flourishing marketplace for locally assembled enterprise products and IDC expects this space to be negatively impacted as a wave of new legal entrants take their place in the market.

From a software perspective, IDC expects the market to be driven by major transformation projects within the government, telecommunications, transportation, financial services, and manufacturing sectors. The initial focus of these software projects will be on business process optimization, which will drive demand for enterprise resource management, customer relationship management, supply chain management, and operations and manufacturing applications, as well as for databases and integration middleware, business analytics, and enterprise mobility solutions.

"Once sanctions have been terminated, Iran can move forward in leveraging ICT to transform industries across the country," continues Lalchandani. "The extent of these projects will depend largely on whether global oil prices rebound in the coming years. If they do, the increase in petrodollar revenues will help drive considerable transformation initiatives in the public sector, as well as significant modernization efforts across the energy, manufacturing, telecommunications, finance, transportation, and retail verticals. This will fuel strong demand for enterprise hardware, software, and IT services, with Iran having the potential to overtake South Africa by 2019 to become the second-largest ICT market in the META region behind Saudi Arabia."

About the Research

The IDC Insight report "Understanding the Iran Opportunity: Where It Stands as of October 2015" (IDC # CEMA 23411) looks at the impact the JCPOA between Iran and the P5+1 countries (i.e., China, France, Russia, the United Kingdom, the United States, and Germany) will have on North American, European, and Asian ICT vendors. It also covers the potential consumer and enterprise ICT opportunities that may arise within the Iranian ICT market, and presents a forecast for the overall market's performance over the 2014—2019 period.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

IDC in the Middle East, Africa, and Turkey

For the Middle East, Africa, and Turkey region, IDC retains a coordinated network of offices in Riyadh, Casablanca, Nairobi, Lagos, Johannesburg, and Istanbul, with a regional center in Dubai. Our coverage couples local insight with an international perspective to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy. IDC Middle East, Africa, and Turkey currently fields over 125 analysts, consultants, and conference associates across the region.

Contact for Media:

Anulekha Shetty, Marketing Manager, IDC MEA, Tel: +971 4 391 2741, Email: ashetty@idc.com

 
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