Middle East and North Africa – 69% Growth
Of the three regions we’re highlighting in this report, the Middle East and Northern Africa (MENA) had the highest growth rate at 69%. It’s also 15 percent higher than the broader EMEA region. Saudi Arabia topped our list of emerging customer markets this year, with a 92% growth in revenue from 2019 to 2021. The United Arab Emirates also made the list with a 44% growth rate.
According to GfK, a consumer and market intelligence group, the MENA region has the strongest consumer technical goods market growth in the world. Consumers are conscious of tech trends. For instance, over half of MENA consumers surveyed were interested in learning more about the metaverse.
These consumer trends are likely related to the fact that the region boasts one of the youngest and fastest–growing populations in the world.
Tech infrastructure in the region is growing as well. Enterprise IT spend is expected to top $229 billion in 2022. According to IDC, SaaS will make up over 40% of enterprise cloud software purchases in the region.
Scaling out, the region’s GDP is expected to grow 5.2% in 2022, but is also expected to be highly impacted by inflation.
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Southeast Asia – 41% Growth
Of the eleven countries that comprise Southeast Asia, six made our emerging customer markets list: Thailand, Vietnam, Indonesia, Singapore, Malaysia, and the Philippines.
The region’s 41% revenue growth is just under the broader APAC growth rate of 45%.
According to a joint report by Google, Temasek and Bain & Co, the increased tech consumption in Southeast Asia is spurred by a growing middle class. In 2020, 40 million people came online and continued to increase their digital spending.
There’s a growing B2B market as well, as more big tech companies and firms open regional headquarters in the area, especially in Singapore. Meanwhile, Indonesia is home to several startup unicorns, including Gojek, Bukalapak, and Tokopedia. The entire region is a growing startup hub where startups are expected to see a combined valuation of $1 trillion by 2025.
Overall, GDP growth is forecasted at 4.9% in 2022 and 5.2% in 2023 — slowed by the war in Ukraine and ongoing problems related to the pandemic.
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Latin America – 40% Growth
Like we saw in the Middle East, widespread tech adoption is increasing consumer tech spend across the region and aiding in the rise of a booming tech industry.
More U.S. venture capitalists are looking to Latin America for solid investments, and we see a larger number of LATAM-based companies joining the U.S. stock market. There’s a striking number of new LATAM unicorns — Contexto counted 45 in February of 2022. Many of these unicorns are online marketplaces that target Latin American consumers.
With the rise in tech companies headquartered in LATAM, we also see B2B tech spend growing. According to a survey by Spiceworks Ziff Davis, 70% of LATAM-based companies plan to increase IT budgets in 2022.
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