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

The Cyprus ICT Market size is estimated at USD 0.89 billion in 2024, and is expected to reach USD 1.01 billion by 2029, growing at a CAGR of 2.29% during the forecast period (2024-2029).

Cyprus's market is witnessing significant growth, propelled by a rising focus on digital technology, cyber security, artificial intelligence, robotics, and healthcare IT. Cyprus's robust research infrastructure and tech-savvy, solution-oriented customer base position it as a strategic hub for various ICT activities.

Key Highlights

• The ICT market in Cyprus is witnessing robust growth, propelled by the government's strategic initiatives to cultivate a digital economy and a robust regulatory framework that bolsters foreign investments. Additionally, Cyprus benefits from advanced telecommunications infrastructure and high internet penetration rates, further strengthening its ICT sector.
• Cyprus's strategic location positions it as a pivotal gateway linking Europe, the Middle East, and Africa, making it a desirable hub for global companies. The rising call for digital transformation, notably in finance, tourism, and education, is a key driver fuelling the growth of the ICT sector. Bolstering this growth are Cyprus's skilled workforce and a burgeoning start-up ecosystem.
• In November 2023, the Central Bank of Cyprus (CBC) modernized its banking sector significantly by awarding a tender to a joint venture between Infocredit Group and Aqubix. The initiative seeks to revolutionize Cyprus's digital onboarding process by leveraging the KYC Portal CLM. This product is tailored to efficiently onboard new customers and update existing data for credit institutions. This platform enables new and existing customers of credit institutions to verify and authenticate their details, meeting regulatory requirements, all remotely, eliminating the need for in-person bank visits. This advancement significantly streamlines account opening, ensuring a secure, swift, and efficient onboarding process.
• High internet penetration and digital literacy rates among Cyprus's population are fuelling a surge in demand for IT services. According to Eurostat, in 2023, the total share of urban households with internet access in Cyprus was around 92.17 percent. In contrast, it was around 84.64 percent in 2017, highlighting a notable increase in the proportion of urban households in Cyprus that have internet access.
• Increasing internet usage drives growth in the Cyprus ICT market, spurring demand for digital services and products. This surge in connectivity is not only boosting the adoption of cloud computing, e-commerce, and digital communication tools but also propelling progress in IoT, AI, and cybersecurity, meeting the rising need for diverse online solutions.
• However, concerns related to privacy as well as data security, coupled with the substantial CAPEX demands of advanced telecom infrastructure, are poised to impede market growth throughout the forecast period.

Cyprus ICT Market Trends

Growing demand for Cloud Technology

• Cyprus's ICT market is witnessing robust growth, propelled by a notable uptick in the adoption of cloud technology. Businesses are pivoting towards cloud services and infrastructure, bolstering their efficiency and scalability in the era of digital transformation.
• Moreover, Cyprus's focus on cybersecurity and data protection is fueling investments in cloud technologies. This emphasis is luring in a mix of local and global players, spurring market growth. By prioritizing security, Cyprus isn't just fostering innovation but also paving the way for novel applications and services.
• In August 2023, Kyndryl, an IT infrastructure services provider, and CNP Cyprus, an insurance group in Cyprus, renewed their agreement for another five years. Under this agreement, Kyndryl will transition CNP Cyprus' current IT infrastructure to a hybrid cloud setup. This move is aimed at bolstering CNP Cyprus' IT modernization initiatives, with a focus on elevating both customer and employee experiences, fortifying security measures, and ensuring operational resilience.
• Moreover, with a surge in internet-connected households, the country is witnessing a surge in the demand for cloud technology. As households increasingly adopt multiple devices, cloud solutions become pivotal, providing scalable storage and computing power. Consequently, this facilitates smooth data synchronization, bolstering the remote work trend. The growing demand for cloud technology is also propelling the adoption of cloud-based services, such as streaming, online gaming, and smart home technologies, all of which heavily rely on robust cloud infrastructures.
• According to Eurostat, in 2023, the percentage of Cyprus households with internet access held steady at around 92.3%, whereas in 2022, the total share of households with internet access in Cyprus was 79.41%. The growing number of households in the country gaining internet access is set to significantly enhance market growth prospects.

IT and Telecommunication Sector to Witness the Significant Adoption of Market

• Cyprus's IT and telecom sector is experiencing notable growth, propelled by the widespread adoption of technology. The country's economy and government are actively promoting digitalization, as seen in their investments in digital infrastructures, devices, software, and services. This transition to digitalization has not only enhanced user experiences but has also opened up avenues for fresh business prospects.
• Moreover, the market is fueled by an increasing demand for IT and telecom services, pivotal in the nation's digital transformation. The rapid expansion of high-speed internet, alongside the widespread adoption of 5G networks, has bolstered connectivity. This, in turn, has accelerated the adoption of cloud computing, IoT, and remote work solutions. According to Eurostat, in 2023, the percentage of suburban households in Cyprus with internet access rose by 2.8 percentage points, marking a 3.02% increase from 2022. By the end of 2023, the penetration of internet access in suburban households reached 95.37%.
• In June 2023, the Digital Security Authority (DSA) of Cyprus announced that Cyprus and Serbia had signed a Memorandum of Understanding (MoU) primarily aiming at electronic communications and cybersecurity. The DSA highlighted that the MoU's primary goals are to elevate expertise and information exchange in electronic communications and postal services, bolster cybersecurity, and foster effective cooperation in these realms.
• In Cyprus, the IT and telecom sector is witnessing substantial growth, propelled by the country's escalating engagement with social media. This surge in social media activity is directly correlating with a marked uptick in data consumption, underscoring the need for enhanced internet speeds and resilient telecom infrastructure. According to StatCounter, as of May 2024, around 72.45% of the Cyprus population used Facebook, whereas, in October 2023, around 69.01% of the Cyprus population used Facebook.

Cyprus ICT Industry Overview

The Cyprus ICT market is moderately competitive due to the presence of significant players like Microsoft Corporation, IBM, SAP SE, and Oracle Corporation. Market players are increasingly turning to partnerships and product launches to bolster their product portfolios and secure a lasting competitive edge.

• June 2024: Nicodemos Damianou, the Deputy Minister of Digital Policy, has inaugurated the National Cybersecurity Coordination Centre, emphasizing the State's ongoing commitment to bolstering cybersecurity. This event signifies a pivotal step in establishing a cohesive cybersecurity ecosystem in Cyprus. The National Cybersecurity Coordination Centre (NCC-CY) plays a vital role in bolstering the nation's economic and societal resilience against the escalating threats in cyberspace.
• May 2024: Resecurity, a global cybersecurity company, strategically partnered with Beyon Cyber, a digital security provider based in Cyprus. This collaboration highlights a joint dedication to providing superior cybersecurity solutions and enhancing digital protections for clients spanning diverse industries. This partnership aims to bolster Beyon Cyber's capabilities, ensuring clients leverage the market's most advanced security measures.

Additional Benefits:

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

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