Page 19 - Iran OUTLOOK 2025

Pezeshkian's broader initiative to liberalise the technology market.
However, the sector's development continued to be shaped by external constraints, particularly economic sanctions and regulatory frameworks. Left field threats to existing ISPs and mobile network providers including Elon Musk in the form of his banned but available Starlink internet service providers is the newest external threat to the country’s TMT sector.
• 6.6 Manufacturing
In 2024, Iran's manufacturing sector demonstrated variable performance across its major industries. The overall manufacturing market showed modest growth prospects, with projections indicating a 1.47% expansion between 2024 and 2029, potentially reaching $43.7bn by the end of that period.
Steel production emerged as a relatively stable segment, with output exceeding 25mn tonnes of crude steel in the first ten months of 2024. This represented a marginal increase of 0.6% compared to the same period in 2023, suggesting steady but limited growth in this core industrial sector.
The aluminium industry recorded production of 400,425 metric tons of aluminium ingots during the first eight months of the Iranian calendar year (March 20-November 21, 2024). This output level reflected the sector's continued operational capacity despite broader economic challenges.
Automotive manufacturing showed more robust growth, with an 8% increase in overall output over a one-month period. Particularly notable was the 45% expansion in dual-fuel vehicle production between March 21 and August 22, 2024, compared to the corresponding period in 2023, indicating growing emphasis on alternative fuel vehicles.
However, the manufacturing sector's performance was constrained by significant operational challenges. Power shortages led to production disruptions and factory slowdowns, whilst inflationary pressures continued to impact production costs across all manufacturing segments.
19 IRAN OUTLOOK 2025 www.intellinews.com