“Egypt: Emerging as a Hub for Automotive Software Development and Export”

With the attraction of global companies and the rise of local success stories, Egypt is positioning itself as a leading center for automotive software development and export.

The Egyptian government, particularly the Ministry of Communications and Information Technology and its development arm, the Information Technology Industry Development Agency (ITIDA), is actively promoting the localization of automotive software manufacturing. This aligns with the recent technological revolution that has rapidly transformed the automotive industry, shifting from mechanical designs to electronic components. Software now plays a pivotal role in designing and redefining vehicles as “software-defined vehicles.”

Egypt possesses several competitive advantages, including a strategic geographic location connecting East and West, and a highly skilled workforce nurtured by the accumulated expertise and strategic initiatives of the Ministry of Communications and Information Technology and its affiliated agencies.

Software is a fundamental component of modern vehicle design, significantly impacting vehicle functions, safety, and user experience. A single vehicle can consist of over 2,000 software components.

Automotive software encompasses applications that control various aspects of vehicle operation, including engine management, safety systems, infotainment features, and connectivity to external devices. These software solutions are designed to enhance performance, improve safety, and provide a seamless user experience for drivers and passengers.

ITIDA is committed to strengthening Egypt’s position in exporting high-value technology services.

Ahmed Al-Daher, CEO of ITIDA, emphasized the Egyptian IT sector’s ability to attract foreign investments and leading companies in various ICT fields. He highlighted the agency’s commitment to enhancing Egypt’s position in exporting high-value technology services.

Al-Daher noted that the Ministry of Communications and Information Technology’s strategy focuses on providing qualified personnel to meet the growing demand for highly specialized technological fields such as embedded systems and integrated circuit design, as part of the presidential initiative “Egypt Manufactures Electronics.”

According to a recent study by Gartner, as reported by the Software Engineering Certification Center (SECC) affiliated with ITIDA, organizations that implement test automation using AI can reduce testing time by 30% and achieve an 85% increase in test coverage, leading to a 50% improvement in product launch processes, giving these organizations a significant competitive advantage.

According to Data Bridge Market Research, the global automotive software market is expected to reach $86.2 million by 2029, with a compound annual growth rate of 17.7%.

Egypt is home to several major global companies specializing in automotive technology development, autonomous driving solutions, and software. Simultaneously, a number of local success stories have emerged, including Valeo, Capgemini, Valeo, and Cytec Solutions, which specializes in developing embedded hardware and software for the automotive industry and the Fourth Industrial Revolution solutions for industrial applications.

Remarkably, Valeo Egypt’s team has developed 250 patents registered with the company’s offices in Germany and France. Valeo Egypt employs 3,500 people, while Cytec Solutions has over 300 engineers, and Vehicle Evo Egypt employs approximately 75 engineers specializing in automotive software testing and electronic control units (ECUs).

Valeo is collaborating with the Information Technology Institute (ITI) and Egyptian universities to launch specialized educational programs in automotive software development, with graduates joining the company directly after completing their studies and training.

Hussam Seif El-Din, Managing Director of Capgemini Egypt, stated that Cairo is well-equipped to provide engineering services related to automotive design and engines, thanks to its strong base of engineers and mechanics.

Seif El-Din explained that Egypt’s geographic location gives it a significant competitive advantage, allowing it to easily and efficiently provide services to Europe and America. He emphasized that English is a global business language, and Egypt has a workforce proficient in it.

He hinted that his company is paying significant attention to technology and commercial services, noting that Capgemini Egypt is experiencing tremendous growth in its workforce, reaching 500 by the end of this year, a 250-employee increase compared to 2023.