Economy, Sci & Tech

Iran IT Market to Earn $2.8b by 2020

Iran IT Market to Earn $2.8b by 2020Iran IT Market to Earn $2.8b by 2020

Iran’s information technology services market suffered a major setback due to the imposition of economic sanctions on the country a few years back.

Basic IT services such as instant messaging offered by companies such as Microsoft were also suspended.

Consequently, the IT market in Iran exhibited a gradual decline during 2010-13. However, post the announcement of lifting of economic sanctions, the market is projected to grow at a considerable pace during the forecast period.

The government’s plan to establish IT parks is anticipated to boost IT services in Iran over the next five years. Tehran is forecast to account for a lion’s share in terms of revenues during 2015-20, predominantly on account of expansion of private sector players in the region and increasing government support.

According to a TechSci research report titled “Iran IT Services Market Forecast & Opportunities 2020”, revenues from IT services are projected to reach $2.8 billion by 2020. Growth in the IT market is being driven by growing Internet and smartphone penetration rates.

Booming e-commerce market and rising software exports from the country are anticipated to underpin growth in the IT market during 2015-20. The trend is anticipated to gain momentum during the forecast period, with the lifting of economic sanctions by mid-2016.

In 2014, captive management services dominated Iran’s IT services market, followed by the application software segment. This segment is forecast to maintain its dominance in the coming years as well on account of growing demand for network consulting and integration and web services consulting.

“The IT services market in Iran is projected to grow over the next five years on account of economic sanctions removal in 2016, increasing private-public investments in the country’s IT sector, coupled with easy availability of skilled IT manpower and low wages,” said Karan Chechi, research director with TechSci Research, a research-based global management consulting firm.

“Establishment of new IT and technology parks, coupled with the implementation of government reforms and aimed at encouraging private investments in the country’s IT sector, is anticipated to boost Iran’s IT services market through 2020.”