Current Trends Affecting the Tech Sector in EMEA Through 2022 and Beyond
Technology has successfully woven its way into our daily lives in 2022. The epidemic has been a period of great uncertainty and turmoil, but it has also served as a timely catalyst for the growth of the ICT sector. We now rely more than ever on both core and emerging technologies as a result of the uniform and rapid digitization that has had an immediate impact on a number of industries, including healthcare, insurance, education, retail, and food delivery.
Generally speaking, this radical transformation in our daily routines happened almost instantly. We can now shop, order food, purchase insurance, enrol in classes, and watch the newest movies online all from the comfort of our homes. We can also work remotely.
Where does it leave the tech industry in Europe, the Middle East, and Africa (EMEA) in the wake of the pandemic's rapid expansion and transformation? Let’s explore.
Where are Europe's IT hubs located?
According to Statista, the number of startups based in Europe has increased from roughly 1,850 to over 6,600 between 2015 and 2020. And 2021 was even better, bringing a record capital investment of USD 100 billion and the birth of 100 new unicorns. Meanwhile, the fastest-growing tech companies in Europe for 2022 have leveraged the incidental effects of the pandemic.
These companies include the Lithuanian digital healthcare provider KiloHealth, the Finnish sustainability firm Swappie, and the UK-based supply chain expert OCI Group. Then there are strong IT firms like SAP, Spotify, and Revolut that can shed light on optimism.
The Netherlands, on the other hand, has more startups per capita than the rest of Europe combined. London has been ranked as the second-best tech startup hub after Silicon Valley and is home to 76,660 digital technology enterprises. Additionally, the city was named the top fintech hotspot on the planet.
Last but not least, according to a 2022 Financial Times and Statista research, Italy had the fastest-growing companies in Europe over the previous two years.
The Middle East tech boom
One of the world's most rapidly expanding tech markets is considered to be in the Middle East. Across the area, government funding and initiatives are spurring digitalization activities in e-commerce, education, and finance. For instance, excluding Israel, data shows that investments in tech companies in the Middle East quadrupled to USD 2.87 billion in 2021.
The UAE received more than half of this money. Spending by Middle Eastern governments suggests a desire to lead the field of artificial intelligence. By the end of the decade, the UAE hopes to have trained 20,000 data and AI specialists, and it even nominated its own minister of AI. On the other side, Türkiye has made public its national public AI plan. With the help of this ambitious project, more people will be employed as AI experts. By doing this, the government will increase AI's GDP contribution to 5% and generate 50,000 AI jobs by 2025.
Other countries, like Saudi Arabia, anticipate that AI will generate over USD 135.2 billion in economic output by 2030—or 12.4% of GDP.
Israel, which made it into the top 10 of the Global Finance rankings for national technological strength, is another country growing its tech footprint. The rankings are based on factors like a nation's access to the internet, readiness for the creation of new technologies, and the percentage of GDP that is allocated to research and development. Israel's R&D spending and recent rise in new firms, which has boosted growth in both the public and commercial sectors, are key factors in the country's high ranking.
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Africa’s current tech explosion
A young, tech - savvy population as well as the cost-effectiveness of investment in Africa benefit several African nations. Because of this, the most recent Africa Wealth Report, published in April 2022, forecasts that extraordinary technological advancements and a rising business class would enable a 38 percent increase in total private wealth within the next ten years.
The accessibility of cellphones and internet connections is expanding throughout Africa. A whole new range of options are created by the increase in fiber-optic cable use across the continent.
To increase the region's web access, Meta announced that they would be constructing a 37,000-kilometer undersea cable throughout the continent two years ago. By 2030, as opposed to merely 22% in 2020, it is estimated that almost 75% of Africans would have internet connection.
How big is the fintech market in Africa?
Of all the tech sectors influencing the future of the African economy, fintech is by far the market leader. According to KPMG, 2020 saw 65 venture capital investments worth USD 106 million. In 2021, that number of assets rose to 75, at a value of USD 1 billion. The reason that fintech is so ripe for investment in Africa is because the continent has one of the most significant unbanked populations in the world.
Hiring tech talent in 2022
Understanding the demands of tech professionals will be essential for businesses to grow as the tech sector in Europe, the Middle East, and Africa continues to develop. The scope of talent searches has expanded in this new era of work. To keep tech organizations from encountering unneeded obstacles throughout the international hiring process, a successful talent acquisition plan is important. Employers need to be aware that finding top personnel across international borders frequently involves a number of difficulties and complications, including handling tax, payroll, compliance, and local employment rules.
If you are looking for your next tech processional or if you are one, don't forget to visit www.antaltechjobs.com . We have thousands of tech professionals and tech jobs currently on on our website!
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