Jordan ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Jordan ICT Market size is estimated at USD 3.5 billion in 2024, and is expected to reach USD 4.80 billion by 2029, growing at a CAGR of 6.47% during the forecast period (2024-2029).

Key Highlights

• The ICT market includes both IT and telecom. IT investments are increasing in Jordan, and the demand for ICT is expected to grow significantly over the next five years. The growing need to explore and adopt digital technologies and initiatives, the rise in overall digitalization demand and scalable IT infrastructure, the widespread adoption of 5G networks, and the increasing penetration of technology investments are significantly boosting the ICT market's growth in the country. Although information and communication technology (ICT) is ubiquitous, it plays a crucial role in the country's economic development.
• Driven by a growing emphasis on digital technologies such as cybersecurity, artificial intelligence, and robotics, the ICT sector in Jordan is experiencing notable expansion. Local companies are making substantial investments in both hardware and software services, further fueling this growth.
• The country is witnessing a surge in the adoption of 4G and 5G technologies, driven by the expansion of new networks and a growing appetite for high-speed connectivity services. 5G's transformative potential impacts various sectors of Jordan's economy, supporting applications from enhanced mobile broadband to extensive IoT deployments. Its high speed and low latency are crucial in driving this transformation.
• According to Ericsson, 5G subscriptions in the Middle East and North Africa (MENA) region are projected to grow significantly, with an annual compound growth rate of 41%. By 2029, these subscriptions are expected to account for approximately 40% of the total subscriptions in the region. This growth in the region is expected to fuel opportunities for market players in Jordan.
• Furthermore, the country is gaining traction in the e-commerce sector, which demands a robust cloud infrastructure. In August 2023, The Jordan Customs Department (JCD) launched an electronic platform designed as a comprehensive documentary database aimed at streamlining the e-commerce landscape. This initiative addresses the trade sector's demands and underscores the government's commitment to safeguarding Jordanian traders, sellers, and producers. It is a proactive step to counter a trend where consumers, rather than supporting local goods, are increasingly turning to electronic platforms, causing significant losses to the sector.

Jordan ICT Market Trends

Consistent Digital Transformation Initiatives are Driving the Market

• Jordan, despite its modest size in the Middle East, is actively advancing its digital agenda. In 2021, it unveiled the National Digital Transformation Strategy & Implementation Plan for 2021-2025. This strategic blueprint aims to bolster the digital economy through enhanced procedures and capabilities, paving the way for a cutting-edge digital infrastructure and elevated government service standards.
• Robust software solutions are crucial for ensuring e-government efficiency and creating synergy among government departments and institutions. Jordan has made significant progress in its digital transformation, with 960 government services digitized and automated, achieving a 40% completion rate.
• The International Trade Administration estimates that 98% of ICT companies in Jordan fall under the category of small and medium-sized enterprises (SMEs). Such significant development of SMEs in the country demands cloud-based solutions to scale their IT infrastructure.
• The government is actively involved in strengthening the country's digital strategy by making significant investments. In September 2023, Jordan Source, a program under the Ministry of Digital Economy and Entrepreneurship, unveiled its pioneering digital publication, JoSourceIT. This publication offers a comprehensive view of Jordan's tech landscape, spotlighting Jordan Source's partners in ITO, BPO, and gaming. It serves as a valuable resource for industry stakeholders and potential investors, providing insights into the nation's ICT sector.

IT and Telecom Sector is Expected to Increase Demand

• As businesses and individuals increasingly embrace digital strategies, data generation in the country has surged. Consequently, the nation is ramping up investments in data center facilities to handle this complexity.
• The Ministry is leading the development of a digital infrastructure that meets international standards. This initiative includes establishing data centers and launching a private cloud computing platform. The platform provides government institutions with essential cloud-based solutions, enabling a smooth digital transition. The Digital Economy and Entrepreneurship planned to activate 1 million digital identities in 2023.
• Telecommunication operators in the country are currently investing in 5G infrastructure as part of the ongoing commercial launch of 5G in Jordan. Players are investing in Jordan's market to expand the country's network capabilities.
• In September 2023, Orange Jordan and Aqaba Container Terminal (ACT) made a significant move in Jordan and the region by signing an agreement to establish a private mobile network for ACT using 5G technology. This collaboration positions Orange Jordan as the first communications provider in the country and the broader Middle East and Africa region within the Orange Group to establish a private 5G network for business sector customers.
• According to Ericsson, the number of smartphone subscriptions in the Middle East and North Africa has increased from 490.47 million in 2020 to 597.44 million in 2023. The rising smartphone penetration in the MENA region, including Jordan, is driving the demand for a wide range of ICT solutions, such as mobile network infrastructure and e-commerce platforms, among others.
• Furthermore, the nation is expected to gain significant growth in 5G networks. According to GSMA, in 2022, 4G connections dominated the mobile landscape in the Middle East and North African (MENA) region, comprising 48% of all connections. Projections suggest that by 2030, 4G connections are set to decline to 33%, making way for 5G with 47% of the connections in the region. Such a rising trend for 5G across the MENA region is expected to boost 5G infrastructure across Jordan as well, creating various opportunities for ICT solution providers.

Jordan ICT Industry Overview

Jordan's ICT market is moderately competitive and moving toward the fragmented stage as the market currently consists of various significant players. Several key players in the ICT market are constantly making efforts to bring advancements. For instance,

• January 2024: Umniah, a leading mobile network operator in Jordan, unveiled its pioneering Voice over Wi-Fi (VoWi-Fi) service. This move positions Umniah as the trailblazer in Jordan's telecom landscape. In an official statement, Umniah highlighted that its VoWi-Fi service empowers subscribers to place both local and international calls seamlessly over any Wi-Fi network. This innovation ensures crystal-clear reception, even in regions with spotty or absent cellular coverage.
• December 2023: Umniah, Jordan's telecom operator, rolled out its 5G services, marking a significant milestone in the country's telecom landscape. Teaming up with Ericsson and harnessing its 64T64R Massive MIMO technology, Umniah swiftly scaled its 5G network to encompass more than 700 sites.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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