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

The Kazakhstan ICT Market size is estimated at USD 1.33 billion in 2024, and is expected to reach USD 2.08 billion by 2029, growing at a CAGR of 9.36% during the forecast period (2024-2029).

Key Highlights

• Kazakhstan's ICT market is witnessing robust growth, propelled by government initiatives such as the "Digital Kazakhstan" program. This program is designed to bolster the nation's digital infrastructure and services. Moreover, rising internet penetration and the proliferation of mobile connectivity are democratizing access to digital services. Notably, foreign investments and strategic partnerships catalyze technological advancements and foster innovation in the sector.
• E-commerce and fintech sectors are on the ascent, bolstering market growth. Furthermore, a rising population with an inclination for technology and initiatives to develop IT skills through educational programs bolsters the ICT sector. Enhanced regulatory structures and incentives for tech startups are additional catalysts propelling Kazakhstan's ICT market growth.
• The ICT market in Kazakhstan is experiencing significant growth, primarily propelled by a surge in internet usage. This increased connectivity is spurring an intensified demand for digital services and products. It's hastening the embrace of cloud computing, e-commerce, and digital communication tools. Moreover, it's propelling innovations in IoT, AI, and cybersecurity, meeting the rising need for diverse online solutions.
• In February 2024, The World Bank's Board of Executive Directors approved a USD 92.43 million financing package for the Kazakhstan Digital Acceleration for an Inclusive Economy (DARE) Project. This initiative aims to deliver robust, climate-resilient broadband access to underserved regions in Kazakhstan, ultimately benefiting more than one million residents in rural locales. The DARE Project responds to Kazakhstan's growing demand for a resilient digital infrastructure. This need has surfaced as the nation grapples with its heavy dependence on natural resources and faces new socioeconomic hurdles.
• As part of its 2025 National Development Plan and the "Digital Kazakhstan" State Program, Kazakhstan is prioritizing innovation and digitalization to bridge the digital divide. The initiative aims to ensure that remote and rural communities have equitable access to digital services, mirroring the connectivity levels of urban centers. Central to this strategy is the goal of providing broadband access to all, a move intended to catalyze a transition to a more sustainable and competitive economic framework.
• Also, in January 2024, Almaty, Kazakhstan-based fintech business Solva secured a substantial USD 20 million equity investment from Neo Crystal Holdings Limited, supported by the Sawiris family and ZCP. The capital injection would enable Solva to expand its digital financial products for millions of small, micro, and medium enterprises, fostering regional job creation.
• However, concerns related to privacy and data security, coupled with the substantial CAPEX demands of advanced telecom infrastructure, are poised to hamper market growth during the forecast period.

Kazakhstan ICT Market Trends

Growing demand for Cloud Technology

• Kazakhstan's ICT market is witnessing notable expansion, propelled by a surge in the adoption of cloud technology. Businesses are pivoting towards cloud services and infrastructure, leveraging them to bolster their efficiency and scalability amidst the digital transformation era.
• Competition in the market is intense, driven by a mix of established and emerging players. These industry participants are deploying a range of strategies in order to enhance their competitive edge and fuel market growth. For instance, in April 2024, Yandex Cloud, a public cloud platform from the Russian Internet giant Yandex, unveiled its cloud services tailored for Central Asian users. This expansion was made feasible with the establishment of a new region, kz1, centered around a Data Processing Center (DPC) in Karaganda, Kazakhstan. Companies in the region can now leverage Yandex Cloud solutions for data storage, processing, AI technology, machine learning, and the development, testing, and launch of digital products.
• Kazakhstan is witnessing an increase in the overall adoption of internet connectivity, fueling the demand for cloud technology. This surge in connectivity not only broadens access to digital services but also escalates data generation. The increasing shift of businesses and individuals to online platforms is fueling a rising demand for data storage and management solutions that are scalable, efficient, and secure. Cloud technology, with its emphasis on flexibility, cost-efficiency, and enhanced performance, is adeptly meeting these requirements. This surge is vital in providing the necessary digital infrastructure to sustain the nation's burgeoning digital economy.
• According to the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan, in 2023, around 83,300 enterprises in Kazakhstan accessed the internet using wired fixed-line broadband connections. This accounted for about 69% of all internet-connected entities. In the same year, over 84% of private households in Kazakhstan opted for mobile internet access, while an additional 18,600 enterprises utilized mobile connections to access the internet.

IT and Telecommunication Sector to Witness the Significant Adoption of Market

• Kazakhstan's IT and telecom sector is experiencing robust growth, propelled by the government's "Digital Kazakhstan" initiative. This initiative is pivotal in the nation's efforts to revamp its digital infrastructure and services. Moreover, rising internet penetration rates and enhanced mobile connectivity are broadening the populace's access to digital platforms.
• Technological advancements and innovation in the sector are being propelled by foreign investments and partnerships. Kazakhstan's tech sector benefits from a tech-savvy population and a robust IT talent pool nurtured by educational and training initiatives. Bolstered by enhanced regulatory frameworks and incentives, the nation is fast becoming a focal point for IT and telecom growth, attracting both startups and established firms.
• Moreover, the overall competition in the market is intense, driven by a mix of established and emerging players. These industry participants are deploying a range of strategies with the aim of enhancing their competitive edge and fueling market growth. In May 2024, Kazakhstan unveiled the eGov Mobile application, a digital identity initiative. The app, housing 33 essential documents such as the national ID card, driving license, and vaccination certificate, serves as a gateway to public services. Users can securely access the app using either a PIN code or the biometrics of their device.
• Kazakhstan's IT and telecom sector is witnessing substantial growth, propelled by the country's growing dependence on social media. This uptick in social media engagement is closely tied to a notable rise in data consumption, underscoring the urgent need for enhanced internet speeds and a resilient telecom infrastructure. According to StatCounter, from January to September 2023, YouTube dominated social media visits in Kazakhstan, capturing around 20% of the nation's total visits to such platforms. Pinterest secured the second spot, capturing close to 19% of all social media site visits across the country.

Kazakhstan ICT Industry Overview

The Kazakhstan ICT market is moderately competitive due to the presence of significant players like Microsoft Corporation, Andersen Inc., and LeverX International Company LLC. Market players are bolstering their portfolios and striving for a sustainable competitive edge through strategic partnerships and product launches.

• March 2024: Ant Group Digital Technologies and Bank CenterCredit (BCC) have partnered to enhance service delivery in Kazakhstan through digital solutions, prioritizing speed and reliability for end-users. As the initial phase of their partnership, BCC would utilize mPaaS, a comprehensive cloud-based solution for end-to-end mobile development created by Ant Group's digital technologies. This move aims to launch BCC's inaugural SuperApp in Kazakhstan.
• February 2024: The Ministry of Digital Development in Kazakhstan, in partnership with Presight, a G42 company, and the Sovereign Wealth Fund of Kazakhstan, Samruk-Kazyna, has declared the development of an advanced AI supercomputer and data center cluster. This initiative aims to bolster the nation's digital transformation efforts. The agreement signifies the inaugural project of the recently formed Samruk-Kazyna-Presight joint venture. Its primary goal is to establish the cornerstone of Kazakhstan's national AI digital infrastructure.

Additional Benefits:

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

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