Egypt Software House Services Market 2022-2028

Egypt Software House Services Market 2022-2028

Egypt Software House Services Market Size, Share, & Analysis by Service Types (Website, Mobile Application, Custom Software Development, UI/ UX Design, Consulting, Digital Marketing, Cloud Capabilities, DevOps Services, QA (Quality Assurance) & Software Testing, and E-Commerce Development), Forecast Period (2022-2028)

A software house is an entity that offers specialized services in software products to both business and consumer software as per the requirements of their client base and structure for a software release. Some specialized services widely beingg opted for includes Software-as-a-Service (SaaS) or single-license software across the globe. Egypt software house services market is anticipated to grow at a CAGR of 11.5% during the forecast period (2021–2028). The market was valued at $970 million in 2017 and is estimated to reach $3.1 billion in 2028. The primary factors attributing to the growth of the market in Egypt includes the increased IT spending along with the growing adoption of SaaS. Hence, various global software players are also focusing on launching their SaaS platforms and services in Egypt to cater the rising demand. For instance, in 2021, Grubtech, a restaurant-focused SaaS startup, expanded its services in Egypt after Saudi Arabia-based Foodics. According to the company, currently, around 80.0% of the food consumed in Egypt is placed offline, thus posing significant potential for Grubtech to establish a SaaS-based cloud platform to offer online food ordering services in the country.

Furthermore, the improved IT infrastructure, increasing data breaches and threats related to data are also increasing, creating significant demand for advanced security solutions, in turn bolstering the market growth. According to the Egyptian Ministry of Communication and Information Technology, a new national cybersecurity strategy for the period 2022-2028 has been forged to fully secure the ICT infrastructure and create a safe environment where different sectors can render full electronic services. The strategy primarily aims to unify national visions to address cyberattacks, raise awareness of cybersecurity, advance scientific research, and promote innovation. The strategy will soon be finalized and adopted by the Egyptian Supreme Cybersecurity Council (ESCC). With the implementation of various strategies, companies operating in the market have started investing their resources to improve their existing advanced security offerings. For instance, in September 2022, as per the National Telecom Regulatory Authority of India, Egypt has been listed among the top 20 countries susceptible to cyberattacks across the globe. Due to this, the software development agencies operating within the government started focusing on preventing upcoming cyberattacks. Back in 2008, post-outage incident in Egypt, the government established the Egyptian Computer Emergency Readiness Team (EG-CERT). Furthermore, owing to the shortage of qualified cybersecurity experts, the EG-CERT team is planning to train all employees in collaboration with the Information Technology Institute (ITI).

The Egypt software house services market witnessed a Y-o-Y growth rate of 13.8% from 2021-2021. The market size was estimated to be $1.1 billion in 2021, which is predicted to reach $1.6 billion in 2022. The impact of the COVID-19 pandemic compelled the IT services industry to implement and deploy remote working infrastructure on a large scale, along with adjusting their business strategies as per the challenging market scenarios. Thus, accelerating strides towards the technological advancements and changes across industries, which support organizations to survive the COVID-19 pandemic by focusing on resource management and talent acquisition software.

1.1.1. MARKET SEGMENT OUTLOOK

Based on the service types, the market is sub-segmented into website, mobile application, custom software development, UI/ UX design, consulting, digital marketing, cloud capabilities, DevOps services, QA & software testing, and e-commerce development. Among these, the consulting sub-segment held the largest market share of 31.8%, accounting for around $309 million in 2017, and is estimated to reach $1.0 billion in 2028. The segment is projected to grow at the highest CAGR of 11.7% during the forecast period (2021-2028). The primary factor attributed to the segmental growth includes the rise in the proliferation of online portals across the country owing to robust adoption of smartphones coupled with the availability of uninterrupted and high-speed internet services. Hence, the government organizations operating in the country are inclined toward launching online portals for different departments. For instance, in July 2022, Egypt’s Minister of Tourism and Antiquities announced the launch of an official website/online portal for tourism. The website will offer introductory and informational services, including all details concerning the scope of work and competencies of the Tourism and Antiquities Ministry along with its affiliated bodies. Moreover, the components of the tourism infrastructure in Egypt will also be included on the website. It is the first website to be launched after the merger of tourism and antiquities into one ministry. In addition, the ministry is currently reviewing the final version of the website, which will be finalized and launched by the end of 2022.

1.1.2. KEY PLAYERS OUTLOOK

Prominent players in the Egyptian software house services market include Google, IBM Corp., Cisco Inc., Edex Business Solutions, INETWORK Middle East, Sendian Creations, BE Group, Vocus Digital Agency, Enozom Software, and Tech Village, among others. These market players are adopting various strategies such as partnerships and product launches to stay competitive in the market. For instance, in June 2022, Google Inc. launched a digital marketing program named “Startup Expedition” for MENA startups. Selected startups from Egypt include Breadfast, Homzmart, and Thndr. The program will be conducted in 2 phases, of which the 1st phase of selecting the startups for the program has been completed in June 2022. Furthermore, it will be a 6-month program launched specifically for startups that are still in their growth stage in the IT services industry. Thus, the program will support startups to bolster FinTech, Retail, HealthTech, and FoodTech.