United Arab Emirates Telecom Market Size was valued at USD 9.5 Billion in 2022. The telecom market industry is projected to grow from USD 9.83 Billion in 2023 to USD 12.947 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.50% during the forecast period (2024 - 2032). Due to market drivers like population growth, smartphone penetration, the expansion of digital infrastructure, and government initiatives to support digital transformation, the United Arab Emirates telecom market has seen significant growth in recent years.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Rising Internet Penetration to Boost the Market Growth
The United Arab Emirates telecom market CAGR is anticipated to grow faster in the future due to rising internet penetration. Internet penetration, also known as internet adoption rate or internet penetration rate, is a metric that indicates the proportion of the overall population within a given region, demographic, or organization that has access to and makes use of the internet. As more people use the internet, telecom companies have more and more options to grow their businesses, enhance their infrastructure, provide new services, and boost revenue, all while promoting social and economic advancement. For instance, a research states that the United Arab Emirates has the greatest percentage of active internet users worldwide—99% of the population.
Significant factors contributing to the market growth included rising replacement rates, rising average device usage per user, and consumers switching from feature phones to smartphones as a result of price reductions. The rollout of 5G has already occurred, and the faster mobile internet it offers is anticipated to further propel the expansion of the nation's mobile network market. Major operators, mostly government-owned Etisalat and Du, dominate the thriving mobile market in the United Arab Emirates. The mobile network is always evolving, and companies that operate in these countries are growing. Thus, driving the telecom market revenue.
Telecom Service Type Insights
The United Arab Emirates Telecom market segmentation, based on service type, includes Fixed-Line Services, Mobile Services and Broadband Services. The mobile services segment dominated the market mostly. This is explained by the fact that consumers' use of cell phones is steadily increasing. Throughout the course of the projection period, the segment growth is anticipated to be further supported by the rapidly increasing demand for high-speed broadband mobile services for both business and household applications.
Telecom Network Type Insights
The United Arab Emirates Telecom market segmentation, based on network type, includes 2G, 3G, 4G/LTE and 5G. The 5G category generated the most income. With the introduction of next-generation high-speed networks, there is an increasing need for telecom services in corporate applications. In order to get faster data bandwidth and reduce network latency, businesses are deploying 5G small cell networks and private 5G networks.
Figure 1: United Arab Emirates Telecom Market, by Network Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Telecom End User Insights
The United Arab Emirates Telecom market segmentation, based on end user, includes Residential, Commercial and Industrial. The residential category generated the most income. The growing popularity of watching ultra-high-definition movies and playing online games is expected to propel the segment's growth. The need for high-speed Internet services has been rising quickly due to the rise in the number of persons working remotely. To efficiently do their everyday responsibilities, a large number of residential end users need access to fast, dependable, and reasonably priced Internet services.
Telecom Country Insights
The government's numerous initiatives to improve the nation's internet infrastructure and broadband connection, the rise in data consumption by individuals and businesses, the expansion of 5G deployments throughout the nation, and various innovations by the major telecom market vendors operating in the United Arab Emirates have all contributed to the significant transformation of the United Arab Emirates telecom market over the past few years. The World Bank reports that every person in the nation has access to the internet. The number of people utilizing the internet is predicted to rise due to factors such as the increasing percentage of people using smartphones, the improved service quality provided by operators, and advancements in infrastructure and technology. Moreover, the introduction of 6G and the growing use of 5G are also anticipated to propel market expansion. The region is seeing a steady increase in 5G adoption as 5G network coverage grows. The GSMA reports that there are signs of growing 5G coverage. 90% of the population in the United Arab Emirates have access to 5G by the end of 2021. Another important aspect driving the market's expansion is the rising cost of communication. The market has profited mostly from the rising number of people using smartphones and the increased demand for telecom services from both consumers and companies in recent years.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the telecom market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, telecom industry must offer cost-effective items.
Major players in the telecom market are attempting to increase market demand by investing in research and development operations, including Etisalat Group, Thuraya Telecommunications Company, du (Emirates Integrated Telecommunications Company), Huawei Technologies Co., Ltd., Inmarsat plc, Virgin Mobile United Arab Emirates, Yahsat (Al Yah Satellite Communications Company), Ericsson, Nokia Corporation, and Cisco Systems, Inc.
April 2023: Redesigned business mobile plans with more data and other benefits than ever before at no additional cost are being offered by Etisalat by E& to meet customers' evolving needs in the dynamic business ecosystem. Higher data allotments will be offered to customers by Business First Plus and Business Xtreme in order to satisfy the growing demand for data services from enterprises.
April 2023: The Internet of Things ("IoT") and leading Low Earth Orbit network operator, Astrocast, and Thuraya Telecommunications Company have announced an investment arrangement. In order to boost Thuraya's market expansion in the telecom industry, this agreement seeks to prolong the four-year technical collaboration agreement that the two companies originally entered.
Telecom Service Type Outlook
Fixed-Line Services
Mobile Services
Broadband Services
2G
3G
4G/LTE
5G
Residential
Commercial
Industrial
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 9.5 Billion |
| Market Size 2023 | USD 9.83 Billion |
| Market Size 2032 | USD 12.947 Billion |
| Compound Annual Growth Rate (CAGR) | 3.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Service Type, Network Type, End User, and Region |
| Countries Covered | United Arab Emirates |
| Key Companies Profiled | Etisalat Group, Thuraya Telecommunications Company, du (Emirates Integrated Telecommunications Company), Huawei Technologies Co., Ltd., Inmarsat plc, Virgin Mobile United Arab Emirates, Yahsat (Al Yah Satellite Communications Company), Ericsson, Nokia Corporation, and Cisco Systems, Inc. |
| Key Market Opportunities | Growing Industry Digital Transformation |
| Key Market Dynamics | Increased Smartphone Penetration Rising Policies of the Government and PPP Projects |
Frequently Asked Questions (FAQ) :
The United Arab Emirates Telecom market size was valued at USD 9.83 Billion in 2023.
The market is projected to grow at a CAGR of 3.50% during the forecast period, 2024-2032.
The key players in the market are Etisalat Group, Thuraya Telecommunications Company, du (Emirates Integrated Telecommunications Company), Huawei Technologies Co., Ltd., Inmarsat plc, Virgin Mobile United Arab Emirates, Yahsat (Al Yah Satellite Communications Company), Ericsson, Nokia Corporation, and Cisco Systems, Inc.
The mobile services category dominated the market in 2023.
The 5G category had the largest share of the market.
Research Analyst Level I He is an extremely curious individual currently working in healthcare and medical devices domain. kinjoll is comfortably versed in data centric research backed by healthcare educational background. he leverages extensive data mining and analytics tools such as primary and secondary research, statistical analysis, machine learning, data modelling. his key role also involves technical sales support, client interaction and project management within the healthcare team. lastly, he showcases extensive affinity towards learning new skills and remain fascinated in implementing them.
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