Introduction: The MENA region’s entrepreneurialecosystem, which has been developing significantly over the years is set torapidly flourish.With key investments from majorinternational players, the region is positioned to diversify product offeringsand propel entrepreneurship. The UAE government has always showedfull support by encouraging the rise of start-ups and promoting new ideas andconcepts, which can be utilized to enhance the economy at large.Development of a sustainable start-upecosystem can help the region create a system which is valuable toentrepreneurs and investors alike.The ecosystem itself needs to ensurethat entrepreneurs and start-up companies can get the help they need to buildscalable businesses.
According to the GlobalEntrepreneurship Monitor Report 2017, 73% of the population of Egypt findentrepreneurship as a key career choice.It has also been reported that therehave been 3000 start-ups in the region and over $870 million investments forstart-ups within the last year.The UAE has also been noted to be theforerunner as an entrepreneurial hub, being at the top of the MENA region’s topfunded start-ups, equating to 50 per cent.
The world’s most notableentrepreneurial ecosystem venues is the California-based Silicon Valley.MENA has the opportunity to follow asimilar path and challenge the status quo by utilizing three main concepts forbecoming an entrepreneurial hub and that is connecting all the field’s regionalexperts.The MIT Enterprise Forum Arab Start-upCompetition, which was held in May 2017 recognizes talent in innovation andentrepreneurship and identified key start-ups from the MENA region, who arepaving the way using technology and other innovative means to change the world.Technology has a major role in MENAespecially in Egypt and the UAE to further enhance the landscape for newstart-up product developments and networking with global investors.
Due to the fact that we live in acompetitive, global economic environment, the MENA region has to compete withother global entrepreneurial hubs such as global technology headquarter SiliconValley.However, the region is positivelypositioned to thrive in nurturing new talent, training and education and candiversify investments that can spearhead start-ups into a prosperous future forthe flourishing economy in the Middle East.Following are a fieldstechnology-related that can be a potential opportunities for MENA entrepreneursand startups: Ø 3Dprinting: Researchers estimate that the 3Dprinting market will reach $7.3 billion in 2016. The primary market – including3D printing systems, materials, supplies and service – has grown at least 30%each year from 2012 to 2014. The rest of the growth comes from the secondarymarket, including tooling, molding and castings. Westerncountries (North America and Europe) account for more than two-thirds (68%) ofthe 3D printing market revenue and Asia Pacific accounts for 27%. Theconsumer electronics and automotive industries each contribute 20% of the total3D printing revenue.
These early-adopter industries use the technologyprimarily during the prototyping stage of production. For example, smartphonemanufacturers are slowly using 3D printing for more than just prototyping—somecomponent parts are now manufactured with 3D methods. Themedical device industry (15%) is the third largest 3D printing market and uses3D printing for mass customized finished goods such as hearing aids. Interestingfact: 98% of hearing aids worldwide are manufactured using 3D printing. 3Dprinting adoption CurrentUsers: Two thirds of manufacturers already use 3D printing in some way,and 25% plan to adopt the technology in the future. Despite these numbers, thefull potential of 3Dprinting is far from tapped. Intenders: Thirty-two percent of current users don’t believe their company isfully leveraging the advantages of 3D printing while 45% of intenders would usethe technology more ifbenefits were better understood by their company. Influencers: The primary influencers driving companies’ 3D printing strategyare managers in R&D, engineering and or manufacturing.
Demonstrating thebenefits of 3D printing to these audiences is crucial for driving increasedadoption. Ø Drones: Like the internet andGPS before them, drones are evolving beyond their military origin to becomepowerful business tools. They’ve already made the leap to the consumer market,and now they’re being put to work in commercial and civil governmentapplications from firefighting to farming. That’s creating a market opportunitythat’s too large to ignore.
THE OPPORTUNITY AHEADBetween now and 2020, we forecast a$100 billion market opportunity for drones—helped by growing demand from thecommercial and civil government sectors. MILITARYDrones got their start as safer,cheaper and often more capable alternatives to manned military aircraft.Defense will remain the largest market for the foreseeable future as globalcompetition heats up and technology continues to improve.
CONSUMERThe consumer drone market was thefirst to develop outside the military. Demand has taken off in the last twoyears and hobbyist drones have become a familiar sight, but there is plenty ofroom for growth.Over the next few years, its expectedthat consumer demand will continue to build. By 2020, we expect 7.
8 millionconsumer drone shipments and $3.3 billion in revenue, versus only 450,000shipments and $700 million in revenue in 2014. Source: Goldman Sachs Research COMMERCIAL/CIVILThe fastest growth opportunity comesfrom businesses and civil governments. They’re just beginning to explore thepossibilities, but we expect they’ll spend $13 billion on drones between nowand 2020, putting thousands of them in the sky. Here’s where you might seethem. Ø Artificial Intelligence: The market forartificial intelligence (AI) technologies is flourishing. Beyond the hype andthe heightened media attention, the numerous startups and the internet giantsracing to acquire them, there is a significant increase in investment andadoption by enterprises.
A Narrative Science survey foundlast year that 38% of enterprises are already using AI, growing to 62% by2018. Forrester Research predicted a greater than 300% increase ininvestment in artificial intelligence in 2017 compared with 2016. IDCestimated that the AI market will grow from $8 billion in 2016 to morethan $47 billion in 2020.
Coined in 1955 todescribe a new computer science sub-discipline, “Artificial Intelligence”today includes a variety of technologies and tools, some time-tested, othersrelatively new. To help make sense of what’s hot and what’s not, Forrester justpublished a TechRadar report on Artificial Intelligence (forapplication development professionals), a detailed analysis of 13 technologiesenterprises should consider adopting to support human decision-making.Based onForrester’s analysis, here’s a list of the 10 hottest AI technologies:1.
Natural Language Generation: Producing text from computer data.Currently used in customer service, report generation, and summarizing businessintelligence insights. Sample vendors: Attivio, Automated Insights, CambridgeSemantics, Digital Reasoning, Lucidworks, Narrative Science, SAS, Yseop.2. Speech Recognition: Transcribe and transform humanspeech into format useful for computer applications.
Currently used ininteractive voice response systems and mobile applications. Sample vendors:NICE, Nuance Communications, OpenText, Verint Systems.3. Virtual Agents: “The current darling of the media,”says Forrester (I believe they refer to my evolving relationships with Alexa),from simple chatbots to advanced systems that can network with humans.Currently used in customer service and support and as a smart home manager.Sample vendors: Amazon, Apple, Artificial Solutions, Assist AI, CreativeVirtual, Google, IBM, IPsoft, Microsoft, Satisfi.
4. Machine Learning Platforms: Providing algorithms, APIs,development and training toolkits, data, as well as computing power to design,train, and deploy models into applications, processes, and other machines.Currently used in a wide range of enterprise applications, mostly `involvingprediction or classification. Sample vendors: Amazon, Fractal Analytics,Google, H2O.
ai, Microsoft, SAS, Skytree.5. AI-optimized Hardware: Graphics processing units (GPU) andappliances specifically designed and architected to efficiently run AI-orientedcomputational jobs. Currently primarily making a difference in deep learningapplications. Sample vendors: Alluviate, Cray, Google, IBM, Intel, Nvidia.
6. Decision Management: Engines that insert rules and logicinto AI systems and used for initial setup/training and ongoing maintenance andtuning. A mature technology, it is used in a wide variety of enterpriseapplications, assisting in or performing automated decision-making.
Samplevendors: Advanced Systems Concepts, Informatica, Maana, Pegasystems, UiPath.7. Deep Learning Platforms: A special type of machine learningconsisting of artificial neural networks with multiple abstraction layers.Currently primarily used in pattern recognition and classification applicationssupported by very large data sets. Sample vendors: Deep Instinct, Ersatz Labs,Fluid AI, MathWorks, Peltarion, Saffron Technology, Sentient Technologies.8.
Biometrics: Enable more natural interactions betweenhumans and machines, including but not limited to image and touch recognition,speech, and body language. Currently used primarily in market research. Samplevendors: 3VR, Affectiva, Agnitio, FaceFirst, Sensory, Synqera, Tahzoo.9. Robotic Process Automation: Using scripts and other methods toautomate human action to support efficient business processes.
Currently usedwhere it’s too expensive or inefficient for humans to execute a task or aprocess. Sample vendors: Advanced Systems Concepts, Automation Anywhere, BluePrism, UiPath, WorkFusion.10. Text Analyticsand NLP: Natural languageprocessing (NLP) uses and supports text analytics by facilitating theunderstanding of sentence structure and meaning, sentiment, and intent throughstatistical and machine learning methods. Currently used in fraud detection andsecurity, a wide range of automated assistants, and applications for miningunstructured data. Sample vendors: Basis Technology, Coveo, Expert System,Indico, Knime, Lexalytics, Linguamatics, Mindbreeze, Sinequa, Stratifyd,Synapsify.There arecertainly many business benefits gained from AI technologies today, butaccording to a survey Forrester conducted last year, there are also obstaclesto AI adoption as expressed by companies with no plans of investing in AI:There is nodefined businesscase 42%Not clear what AIcan be usedfor 39%Don’t have therequiredskills 33%Need first toinvest in modernizing data mgtplatform 29%Don’thave thebudget 23%Notcertain what is needed for implementing an AIsystem 19%AIsystems are notproven 14%Donot have the right processes or governance 13%AIis a lot of hype with little substance 11%Don’town or have access to the requireddata 8%Notsure what AImeans 3%Onceenterprises overcome these obstacles, Forrester concludes, they stand to gainfrom AI driving accelerated transformation in customer-facing applications anddeveloping an interconnected web of enterprise intelligence. Ø CyberSecurity: Cybersecurity Ventures predicts global spending on cybersecurityproducts and services will exceed $1 trillion cumulatively over the next fiveyears, from 2017 to 2021.
In 2004, the global cybersecurity market was worth $3.5 billion —and in 2017 we expect it to be worth more than $120 billion. The cybersecuritymarket grew by roughly 35X over 13 years.While all other tech sectors are driven by reducing inefficienciesand increasing productivity, cybersecurity spending is driven by cybercrime.The unprecedented cybercriminal activity we are witnessing is generating somuch cyber spending, it’s become nearly impossible for analysts to accuratelytrack.Anticipates are 12-15 percent year-over-year cybersecurity marketgrowth through 2021, compared to the 8-10 percent projected over the next fiveyears by several industry analysts.IT analyst forecasts are unable to keep pace with the dramaticrise in cybercrime, the ransomware epidemic, the refocusing of malware from PCsand laptops to smartphones and mobile devices, the deployment of billions of under-protectedInternet of Things (IoT) devices, the legions of hackers-for-hire, and the moresophisticated cyber-attacks launching at businesses, governments, educationalinstitutions, and consumers globally.
It is likely that analyst firms will catch up with our projectionsin 2017 — and update the disproportionately low share of total IT spendingwhich security is expected to account for (over the next 5 years) in theircurrent reports. By 2020, we expect IT analysts covering cybersecurity will bepredicting five-year spending forecasts (to 2025) at well over $1 trillion. Market researchers size information security spendingA Gartner report projected global spending on “IT security”products and services would top $81 billion in 2016, an increase of 7.9%over the prior year (this is not a “cybersecurity” projection that wouldinclude all aspects of cyber defense i.e.
consumers, IoT devices, automobiles,etc.). The largest areas of information security spending are consultingand IT outsourcing, according to the report.A 2016 report from BI Intelligence — Business Insider’sresearch service — estimated $655 billion will be spent on cybersecurityinitiatives to protect PCs, mobile devices, and Internet of Things (IoT)devices between 2015 and 2020. BI breaks down the forecasted spending asfollows: $386 billion spent on securing PCs; $172 billion spent on securing IoTdevices; and $113 billion spent on securing mobile devices.
A Morgan Stanley Blue Paper published this past summer —”Cybersecurity: Rethinking Security” — examines why and how digital securitycould evolve in the next several years—and what these changes mean forinvestors.. and asserts the cybersecurity market could grow by more than fourtimes overall IT spend.North America and Europe are the leading cybersecurity revenuecontributors, according to a report from TechSci Research.
Asia-Pacific israpidly emerging as a potential market for cyber security solution providers,driven by emerging economies such as China, India and South-East Asiancountries, wherein, rising cyber espionage by foreign countries is inducing theneed for safeguarding cyber space.India should see huge cybersecurity market growth over the nextdecade. According to Data Security Council of India (DSCI), India’s cybersecurity market is expected to grow nine-foldto $35 billion by 2025, from about $4 billion. This would mainly be driven byan ecosystem to promote the growth of indigenous security product and servicesstart-up companies.
According to IDC, the hot areas for growth are securityanalytics / SIEM (10 percent); threat intelligence (10 percent +); mobilesecurity (18 percent); and cloud security (50 percent). A Tech Republic storystates the cloud security market is expected to be worth $12 billion by 2020,according to a report from Transparency Market Research.Government spending on cybersecurity has increased at an averageannual rate of 14.5% between FY 2006 and FY 2017, outpacing procurement inevery other type of major government program, according to Scott Homa, SeniorVice President for Mid-Atlantic Research at Jones Lang LaSalle IP, Inc.(JLL), a financial and professional services firm specializing in commercialreal estate services and investment management with 60,000 employees across 280corporate offices worldwide.
Demand for vendor-furnished information security products andservices by the U.S. federal government will increase from $8.6 billion in FY2015 to $11 billion in 2020 at a compound annual growth rate (CAGR) of 5.2percent, according to “Deltek’s Federal Information Security Market Report”.
Deltek states that as federal agencies struggle to stay ahead of thecybersecurity threats, more and more of their IT spend is being devoted tocybersecurity, reaching over 10 percent of IT spend by 2020.