Saudi Arabia Cloud Computing Market Witnessing a Tremendous Growth and GMI Research Estimates the Market to Grow at a Whopping CAGR between 35% to 40% till 2029

Saudi Arabia Cloud Computing Market size is expected to register a double digit CAGR of 35% to 40% over the period 2022-2029.

Saudi Arabia Cloud Computing Trends and Drivers

Factors supporting the growth of the Saudi Arabia Cloud Computing market includes the increasing adoption of digitalization, rising capital investment in technology sector and growing demand for the IoT along with the quick implementation of cloud services across the Saudi Arabia. Saudi Arabia government implemented Saudi cloud strategy in 2019, to promote the use of cloud services across public and private sector in the Saudi Arabia. In addition, the government also planned to improve the cybersecurity and to transform the Saudi Arabia’s economy and society. For instance, Saudi Arabia government introduced the cloud computing economic zone to align with the Saudi vision 2030, planned to enhance the IT infrastructure and to make Saudi Arabia as a regional hub in 2023. The government planned to establish new cloud regions by cloud service providers such Oracle, SAP, Google Cloud and Alibaba cloud, implementation of incentives to encourage cloud services providers to invest and to develop Saudi Arabia as a operational hub. Moreover, MCIT introduced data center strategic plan to attract investment of USD 18 Bn and to establish a network of data centres at a large scale by 2030.

Increasing penetration of internet users coupled with the rising adoption of cloud computing across various verticals is upsurging the demand for cloud computing market in the Saudi Arabia. In 2023, Microsoft, Huawei, Oracle and Zoom joins together to make investment of USD 9 Billion to enhance and accelerate future technologies, tech startups, digital entrepreneurship and to boost Saudi Arabia as a biggest digital market across MENA. However, high chances of cyber-attacks and security issues related to cloud computing is hindering the Saudi Arabia Cloud Computing market growth.

Based on Service Model, Software as a Service segment dominates the market in 2021.

Software as a Service segment is driven by the rising adoption of SaaS solutions for various business functions such as ERP, Project Management, Financial Accounting and CRP among companies. High presence of leading players like Microsoft, IBM, Salesforce, among others are further boosting the SaaS market growth.

Key Developments:
• In 2023, Oracle planned to invest USD 1.5 Bn by expanding its existing cloud capacity in Jeddah region and to open new one in Riyadh region.
• In 2023, Zoho Corporation, Indian software company, planned to invest USD 30 Mn to promote technology adoption across SMEs in Saudi Arabia.
• In 2022, Huawei expanded its footprint by setting up new data center in the Saudi Arabia.
• In 2022, Alibaba cloud launched two data centres in the Saudi Arabia. Through this expansion, the company planned to expand its footprint in cloud computing market.
• In 2020, Alibaba cloud collaborated with the Saudi Telecom Company to offer high performance public cloud services across the Saudi Arabia.

Market Segmentation

Segmentation by Service Model
o Infrastructure as a Service
o Platform as a Service
o Software as a Service

Segmentation by Deployment Model
o Public Cloud
o Private Cloud
o Hybrid Cloud

Segmentation by Industry Vertical
o Manufacturing
o Healthcare and Life Sciences
o IT & Telecom
o Retail and Consumer Goods
o Energy and Utilities
o Media and Entertainment
o BFSI
o Government and Public Sector
o Others

Segmentation by Workload
o Storage, Backup, and Disaster Recovery
o Application Development and Testing
o Database Management
o Business Analytics
o Integration and Orchestration
o Enterprise Resource Management
o Collaboration and Content Management

Segmentation by Organization size
o Small and Medium-sized Enterprises (SMEs)
o Large Enterprises

 

Our Related Reports on Saudi Arabia ICT Market:

Saudi Arabia Cybersecurity Market

Saudi Arabia Smart Home Market

UAE Cloud Computing Market

About GMI Research

GMI Research is a market research and consulting firm which provides market insights and intelligence across 12 major sectors helping our clients in making effective investment and businesss decisions.

 

 

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