According to the latest report released by Canalys, the Middle East region, excluding Turkey, is at a critical juncture of rapid technological transformation and complex geopolitical situations in the second half of 2024. Despite a series of challenges faced by the region, the consumer electronics market, including smartphones, personal computers (PCs), tablets, and Internet of Things (IoT) devices, continues to attract substantial investment.
The report indicates that the expanding digital ecosystem and the growing number of technology enthusiasts in the region provide ample space for technological innovation and market expansion. However, to successfully navigate the dynamic market environment, companies need to deeply understand and address key trends such as the application of Artificial Intelligence (AI), the rise of Chinese Original Equipment Manufacturers (OEMs), the booming consumer market in Saudi Arabia, and the focus of various governments on sustainable development goals.
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Since the COVID-19 pandemic, the consumer electronics market in the Middle East has undergone significant changes, particularly in terms of population growth, economic diversification, and accelerated digitalization. According to data from Standard & Poor's, the total population of the region increased by 9% from 2019 to 2024, reaching an estimated 218 million people. At the same time, the region's advantageous geographical location and favorable tax policies have attracted many expatriates from South Asia and other places to work and live, further promoting socio-economic development.
Additionally, the tourism industry has shown a strong recovery, with international tourist visits increasing by 26% compared to the same period in 2019; sales in tourism and related industries have grown by 31% compared to 2019, reaching approximately $148 billion. In some countries, the smartphone penetration rate has even exceeded 90%, greatly facilitating the growth of e-commerce platforms and social commerce activities.
It is noteworthy that since 2023, Generative AI (GenAI) has gradually become one of the significant factors influencing consumer decision-making and is changing the way people discover new products, obtain information, and their shopping experiences through smart devices. For instance, in the workplace, AI tools are widely used to improve work efficiency and support remote working models, thereby stimulating demand for mobile devices and personal computers with advanced AI capabilities. It is predicted that by 2025, the sales of PCs with AI technology are expected to grow more than twofold, with most shipments based on the Windows system; AI smartphones will also continue to maintain their position as the core interaction platform for users, with an expected growth rate of 62%.
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