
According to the International Data Corporation (IDC), spending on telecom and pay-TV services in the Middle East and Africa (MEA) reached $149 billion in 2024, marking a robust 7.7% increase over the previous year. This growth significantly outpaces the global average of 2.2%. IDC anticipates a continuation of this upward trajectory, projecting a further 7.3% growth in 2025, which will bring the total to approximately $159.9 billion. However, the full effects of ongoing geopolitical instability and new U.S. tariffs on this sector have yet to be fully realised.
The MEA region exhibited the fastest post-COVID recovery in the telecom market, driven by substantial investments from telecom operators eager to meet rising data demands, particularly in underdeveloped African markets. Efforts to expand cellular and fibre network coverage have played a crucial role in this growth, alongside sustained consumer demand, despite operators’ price increases aimed at offsetting inflation, notably in countries such as Türkiye, Egypt, and Nigeria.
A shift in consumer preferences is evident as fixed voice service spending declines in favour of mobile voice and data, largely due to the popularity of over-the-top (OTT) services. This trend is particularly pronounced in Africa, where mobile devices have become the primary means of accessing various services, including entertainment and commerce.
Despite a promising outlook, IDC has slightly tempered its growth forecast for 2025 due to easing inflation in some regions and adjustments by telecom operators. Senior program manager Krishna Chinta noted the transformation of telecom operators into “techcos” as they focus on enhancing customer experiences and operational efficiencies through innovative solutions and upgraded IT infrastructures.
The uncertain geopolitical landscape and associated trade tariffs pose risks to the market, with potential impacts on costs, 5G rollouts, and overall economic conditions. Nonetheless, the immediate direct effects on the telecom services market are expected to be minimal.
For further insights into market dynamics, IDC’s Tracker products continue to offer valuable data and forecasts for technology sectors globally.