Oman Digital Transformation Market - Size & Share Analysis - Growth Trends and Forecasts (2023 - 2028)

Oman Digital Transformation Market - Size & Share Analysis - Growth Trends and Forecasts (2023 - 2028)

The Omani digital transformation market was valued at USD 1,889.8 million last year. It is expected to grow at a CAGR of 11.36%, reaching USD 3,560.0 million in the next five years. Digital transformation entails implementing digital technologies in several areas of an organization, particularly changing how a company functions and provides value to customers. Business services may benefit from digital transformation by improving operations, improving client experiences, building a brand reputation, and increasing customer retention.

Key Highlights

• With the introduction of Industry 4.0 in the manufacturing sector, numerous factories are embracing digital technology to improve, automate, and upgrade the whole process. Industry 4.0 technology, such as robotization, is popular in many enterprises.
• Furthermore, the expanding trend of multi-cloud operation and the increasing need for cloud-based intelligence services drive demand in the market studied. The latest AI technologies add unique and increased value to cloud computing. This component improves overall process viability and is necessary for incorporating new technology.
• Digital twin technology combines 3D models from computer-aided design (CAD) software with historical data, multi-physics, and probabilistic simulation. The concept is also utilized in operations. It helps to inform decision-making around optimizing production and maintenance by assessing how events or actions affect a virtual model of an asset. Because it is possible to model existing conditions and simulate extreme circumstances, the digital twin allows the operator to evaluate the most appropriate procedures to ensure optimal production and personnel safety.
• High dependence on external sources to balance the skill deficit in the country’s digital transformation landscape may limit the growth of the studied market primarily due to the shortage of future tech-skill professionals.
• The COVID-19 pandemic has favorably impacted the digital transformation sector. Due to the shutdown, most firms faced massive losses and were compelled to invest heavily in digitizing their operations. This has also resulted in the growth of cellular mobile, further bolstering digital technologies during the forecast period.

Oman Digital Transformation Market Trends

Ongoing Events and Tourism Demanding Automation to Drive the Market Growth

• The increasing demand for automation and the application of advanced technologies in the country's event and tourism sector is driving the demand for digital transformation solutions. Such factors are positively impacting the growth of the market in the country. Oman's tourism sector has witnessed significant growth in the past few years due to various government initiatives. The tourism sector in the country is further proliferated by the increasing ongoing events in the travel sector, such as Global Travel Week Middle East hosted by Oman, HORECA Oman, etc.
• The event, travel, and tourism sector companies in the country are partnering with digital transformation market vendors to enhance automation practices to serve customers better. For instance, in December 2022, ZaharaTravel, a corporate travel specialist in Oman, announced a partnership with Amadeus to expand its premium customer offering. With the partnership with Amadeus, the corporate travel specialist firm aims to boost its level of automation to provide enhanced and personalized customer service.
• Furthermore, in March 2023, the Ministry of Heritage and Tourism and Microsoft signed a Memorandum of Understanding (MoU) to accelerate digital transformation in the national heritage and tourism sectors. This move aligns with the ministry's mission to promote the heritage and tourism sectors by applying best practices and increasing the competitiveness of tourism destinations and experiences. The MoU defines the scope of cooperation between Microsoft and the ministry, which aims to accelerate the ministry's digital transformation journey by adopting Microsoft cloud-enabled solutions with objectives to increase employees' productivity and drive innovation.
• Such developments, increasing investments in the tourism sector, and the booming event and tourism sector in the country are driving the need for automation to enhance customer experience. Such factors are expected to positively impact the market growth in the future.

IoT to Witness the Market Growth

• IoT plays a significant role in the digital transformation market, as it allows organizations to leverage the power of connected devices and data to improve their operations, enhance customer experiences, and drive innovation. By integrating IoT technologies into their systems and processes, businesses can gain real-time insights, automate tasks, optimize resource utilization, and make data-driven decisions.
• In the digital transformation market, IoT enables various applications, such as smart cities, industrial automation, connected healthcare, smart homes, retail, and supply chain optimization. Some key areas where IoT impacts include connected devices and services, data collection and analytics, improved operational efficiency, enhanced customer experience, supply chain optimization, smart cities and infrastructure, and security and privacy considerations.
• Moreover, internet users and mobile cellular connections might provide the necessary infrastructure for IoT devices to connect and communicate with each other and centralized systems. Robust internet connectivity ensures seamless data transmission and enables real-time monitoring and control of IoT devices and systems.
• The manufacturing sector in the country is a significant adopter of IoT technologies, leveraging them for various applications such as asset monitoring, predictive maintenance, supply chain optimization, and process automation. IoT-enabled sensors and connectivity help improve operational efficiency, reduce downtime, and enhance product quality. Further, as businesses in Oman continue to adopt IoT technology, the nation is well-positioned to take advantage of connectivity, accelerate digital transformation, and establish itself as an emerging player in IoT-driven solutions.

Oman Digital Transformation Industry Overview

The competitive rivalry in digital transformation is high due to the presence of numerous solution providers and technological innovation in the industry. Notably, to maintain the market share and retain new and existing consumers, the companies are regularly altering their pricing schemes, which creates pricing pressure on other companies, thereby augmenting the competition in the market.

• In January 2023, Oman Trading Establishment Group collaborated with SAP SE to migrate to a private cloud and use digital solutions to increase efficiency, strengthen sustainability initiatives, and improve customer service and staff engagement. IntelliSoft, an SAP gold partner specializing in the automobile sector, is the implementation partner for digital transformation.
• In December 2022, Casa Systems, Enea, and IBM developed a complete Private 5G solution for service providers to implement or for businesses to build Private 5G solutions that are more scalable, dynamically adjustable, dependable, and secure. With the help of IBM's Cloud Pak for Network Automation, CSPs can modernize their networks, transition to zero-touch operations, lower OPEX, and offer faster services while advancing telcos' zero-trust goal.

Additional Benefits:

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