Saudi Arabia Cloud Services Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.04 Billion |
| Market Size (2029) | USD 8.80 Billion |
| CAGR (2024 - 2029) | 16.85 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Cloud Services Market Analysis
The Saudi Arabia Cloud Services Market size is estimated at USD 4.04 billion in 2024, and is expected to reach USD 8.80 billion by 2029, growing at a CAGR of 16.85% during the forecast period (2024-2029).
The market is anticipated to grow due to rising demands for lower capital expenditure, increased acceptance of digital business strategies, rising demand for the Internet of Things (IoT), and quicker and simpler cloud service implementation.
- The increasing number of internet users significantly contributes to the country's cloud services market. With internet penetration, there is a significant increase in data production. It is difficult to secure the storage of such a large amount of data. In actual data centres, a number of firms still store client and company information. Cloud service providers are expected to offer a wider range of online data centers at cheaper prices as more and more businesses make use of the internet. Enterprises will benefit from competitive prices as a result of the availability of different cloud service providers.. This development will make it possible to store data in less physical space.
- Saudi Arabia's Vision 2030 is primarily dedicated to digitalizing governmental operations. The Kingdom of Saudi Arabia has put into place a cloud-first policy. This plan attempts to hasten the shift of government organizations from traditional IT systems to cloud-based ones.
- The implications of applying cost-saving methods linked to the adoption of cloud computing were a beneficial societal transformation, including the potential to secure the prosperity of the local economy by ensuring the business sustainability of enterprises across industries. E-government services are implemented to save costs, increase space, free up time, and enhance general efficiency and performance in the public sector.
- By using VMware Cloud Foundation as the unified platform for its cloud environment and distributing workloads across the clouds of service providers, including STC and Mobily, health officials have streamlined the ministry's information technology infrastructure. Following Saudi Vision 2030, the Ministry of Health strives to provide healthcare at the maximum levels of excellence. To achieve this, the country's healthcare providers must access the best multi-cloud foundation to improve operations, boost efficiency, and promote innovation.
- The greatest challenge to cloud computing is security and privacy of information. Encryption, security hardware and safety applications can solve the issues of protection and privacy.
- The COVID-19 outbreak has the growth of the market for cloud services has been stimulated by increasing demand to support several key e commerce applications, such as remote working and a culture of effective business operations, due to an increase in use of cloud computing.
Saudi Arabia Cloud Services Market Trends
Economic Benefits Leading to Cloud Adoption is Expected to Drive the Market Growth
- The Saudi economy is rapidly getting back on track. This increase in GDP and foreign direct investment indicates that the country's revenues from different sectors are increasing; similarly, there may be a rise in technology industries. The market examined will be driven by such a large increase in income.
- In many sectors, the Kingdom's economy is growing as a result of its natural resources and cultural location across three continents. As a result of this expansion, the country has established a sound economic foundation, has become one of the twenty most important economies in the world, and has actively joined the G20. Saudi Arabia, has beem supported by a robust financial system, One of the main players in world economic and oil markets is a strong banking industry, with massive government undertakings based on highly qualified Saudi workers.
- Further, with several investment programs under the Public Investment Fund and prominent corporations, The pace of this structural change is expected to continue in the years ahead. It is also expected that knowledge and innovative ideas will be spread more widely. The economic growth of the market should be driven by these vision policies. Cloud service providers will greatly benefit from such a situation, so that they are able to reach out to public companies and use cloud services in order to increase their market shares.
- According (DGA), the Kingdom of Saudi Arabia has significant government technology investment in the world, making up 21.7% of all national technological expenditures and is anticipated to reach USD 24.8 billion by 2025. The government reports that 141 government agencies have published 6442 open data sets. 74% of the overall demand for cloud computing services, software, and big data in the government will be met by information technology services in the upcoming years.
- The region's increase in the economy from various sectors and the kingdom's policies towards digital transformation will enable the government bodies in Saudi to adopt the cloud into their work system, which will likely reduce the IT cost of the public firms and increase scalability.
Healthcare is to Witness Growth
- The government's efforts to digitise the healthcare sector have had a major impact on growing adoption of cloud computing services in this country. Saudi Arabia's Ministry of Health has stepped up its IT transformation, following the start of COVID 19, which added strain to the healthcare system and increased the need for strong applications such as vaccination reservation systems or direct access to patients' medical records. This has led to an increased adoption of cloud computing services in the healthcare sector since the influenza epidemic.
- As a result of the COVID-19 pandemic, Saudi Arabia's healthcare sector has been forced to adapt to few new ways of working at a rapid pace, as a sudden and rapid increase in the number of patients required a more consolidated and coordinated approach to care. This has led to a growing demand for Cloud services in the country that provide patients with easy access to efficient, high quality care no matter where they live.
- The adoption of cloud services across the healthcare sector enables healthcare providers to shift from the use of labor intensive, energy hungry servers to the management of their IT operations in a secure cloud environment. This has further increased the demand for cloud services in the healthcare sector in the country.
- Various cloud service providers, such as Vmare and STC Cloud, are being working with the Ministry of Health and private healthcare institutions in order to ensure that all patients in the Kingdom can benefit from innovative technology. Cloud technologies, which simplify paperwork and enable new doctors to easily access patient medical information that is protected by cyber security solutions, are therefore increasing the adoption of health care.
- The Ministry of Health shall aim to achieve the greatest levels of excellence in health care, consistent with Saudi Vision 2030 objectives. A multicloud framework has been set up to optimise operations, increase efficiency and foster innovation in healthcare services across the country.
- Predictive analytics in healthcare is a key driver of the cloud market in Saudi Arabia. The use of predictive analytics, coupled with cloud computing, offers numerous benefits in improving healthcare outcomes, enhancing patient care, and optimizing resource utilization. According to Philips, 48 percent of healthcare leaders surveyed in Saudi Arabia in the previous year stated that they had previously implemented or were currently in the process of implementing predictive analytics in their healthcare organization.
Saudi Arabia Cloud Services Industry Overview
The Saudi Arabia Cloud Services Market is highly competitive amd fragemnted gowing to the presence of numerous large firms such as Google, AWS, Microsoft, Oracle, and CloudSigma. Moreover, product innovations, significant R&D spending, partnerships, and acquisitions are the key strategic activities to have a competitive edge over others.
- In November 2023, Amazon Web Services, Inc and NVIDIA has announced an expansion of their strategic collaboration to deliver the most-advanced infrastructure, software and generative artificial intelligence (AI) innovations. The expanded collaboration builds on a relationship that has fueled the generative AI era by providing early machine learningML pioneers with the compute power needed to advance the state of the art of these technologies.
- In Januray 2023, Microsoft Corp. has announced it will add OpenAI’s viral artificial intelligence both to its cloud-based Azure service and ChatGPT , As Microsoft contemplates taking a much larger stake in OpenAI, it is building on the existing relationship between these two companies.
Saudi Arabia Cloud Services Market Leaders
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Google LLC (Alphabet Inc.)
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Amazon Web Services Inc. (Amazon.com, Inc.)
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Alibaba Cloud (Alibaba Group Holding Limited)
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Microsoft Corporation
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Oracle Corporation
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Cloud Services Market News
- February 2023: In order to meet growing demand for its cloud services, Oracle plans to set up a 3rd Public Cloud Region in Saudi Arabia. Oracle's planned investment of USD 1.5 billion in the Kingdom to upgrade cloud infrastructure capabilities is part of this new cloud region, which will be set up in Riyadh. The Oracle Cloud Riyadh Region will likely be added to the current Oracle Cloud Jeddah Region and the proposed Oracle Cloud Region in the future metropolis of NEOM.
- February 2023: At the LEAP23 conference, Google Cloud announced a partnership with Lean Business Services, which offers Digital Health solutions. Lean used Google Cloud's Apigee solution in Saudi Arabia to develop a Digital Platform for Medical Institutions that will likely enable them to deliver secure healthcare services. Google Cloud claims that this collaboration enabled Lean to develop APIs and authenticate health institutions and individuals in order to use telemedicine.
Saudi Arabia Cloud Service Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Value Chain Analysis
- 4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Government policies and initiatives
- 5.1.2 Economic Benefits Leading to Cloud Adoption
- 5.1.3 Increasing Penetration of Technology Giants
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5.2 Market Restraints
- 5.2.1 High Dependence on External Sources to Balance the Skill Deficit
- 5.2.2 Vendor Lock In
- 5.2.3 Compliance Issues, Migration Complexity, And Security Risks
6. MARKET SEGMENTATION
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6.1 By Deployment
- 6.1.1 Public Cloud
- 6.1.1.1 Software-as-a-Service (SaaS)
- 6.1.1.2 Platform-as-a-Service (PaaS)
- 6.1.1.3 Infrastructure-as-a-Service (IaaS)
- 6.1.2 Private Cloud
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6.2 By End-User Industry
- 6.2.1 Oil, Gas, and Utilities
- 6.2.2 Government and Defense
- 6.2.3 Healthcare
- 6.2.4 Financial Services
- 6.2.5 Manufacturing and Construction
- 6.2.6 Other End-User Industries
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Google LLC (Alphabet Inc.)
- 7.1.2 Amazon Web Services Inc. (AMAZON.COM, Inc.)
- 7.1.3 Alibaba Cloud (Alibaba Group Holding Limited)
- 7.1.4 Microsoft Corporation
- 7.1.5 Oracle Corporation
- 7.1.6 CloudSigma
- 7.1.7 VMware, Inc.
- 7.1.8 Salesforce Inc
- 7.1.9 Saudi Telecom Company
- 7.1.10 IBM Corporation
- 7.1.11 SAP SE
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Saudi Arabia Cloud Services Industry Segmentation
Cloud services are a broad category of on-demand services supplied to businesses and users through the Internet. These services are intended to enable simple, low-cost access to applications and resources that do not require internal infrastructure or hardware. Cloud computing vendors and service providers oversee all aspects of cloud services. A business does not need to host apps on its in-house servers as they are made available to clients from the providers' servers.
The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates during the forecast period. The scope of the study includes deployment and end-users. In addition, the study provides cloud service adoption trends and crucial vendor profiles. The study further analyses the overall impact of COVID-19 on the ecosystem.
The saudi arabia cloud services market is segmented by deployment (public cloud [software-as-a-service, platform-as-a-service, infrastructure-as-a-service], private cloud), end-user industry (oil, gas & utilities, government & defense, healthcare, financial services, manufacturing & construction). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Deployment | Public Cloud | Software-as-a-Service (SaaS) |
| Platform-as-a-Service (PaaS) | ||
| Infrastructure-as-a-Service (IaaS) | ||
| By Deployment | Private Cloud | |
| By End-User Industry | Oil, Gas, and Utilities | |
| Government and Defense | ||
| Healthcare | ||
| Financial Services | ||
| Manufacturing and Construction | ||
| Other End-User Industries |
Saudi Arabia Cloud Service Market Research FAQs
How big is the Saudi Arabia Cloud Services Market?
The Saudi Arabia Cloud Services Market size is expected to reach USD 4.04 billion in 2024 and grow at a CAGR of 16.85% to reach USD 8.80 billion by 2029.
What is the current Saudi Arabia Cloud Services Market size?
In 2024, the Saudi Arabia Cloud Services Market size is expected to reach USD 4.04 billion.
Who are the key players in Saudi Arabia Cloud Services Market?
Google LLC (Alphabet Inc.), Amazon Web Services Inc. (Amazon.com, Inc.), Alibaba Cloud (Alibaba Group Holding Limited), Microsoft Corporation and Oracle Corporation are the major companies operating in the Saudi Arabia Cloud Services Market.
What years does this Saudi Arabia Cloud Services Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Cloud Services Market size was estimated at USD 3.36 billion. The report covers the Saudi Arabia Cloud Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Cloud Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the main challenges faced by the Saudi Arabia Cloud Services Market?
Major challenges faced by the Saudi Arabia Cloud Services Market are a) Data security concerns b) Regulatory compliance issues c) Need for skilled cloud professionals
What trends are shaping the future of the Saudi Arabia Cloud Services Market?
Emerging trends in Cloud Services Market in Saudi Arabia are a) Adoption of hybrid cloud models b) Increased use of AI and machine learning in cloud services c) Growth of edge computing
Cloud Computing in Saudi Arabia Industry Report
The cloud computing market in Saudi Arabia is on a remarkable growth trajectory, fueled by digital transformation across diverse sectors. This surge is propelled by the adoption of cloud technologies that offer scalable and cost-effective solutions for data storage and management. Businesses are increasingly moving towards hybrid and multi-cloud environments for enhanced performance and data management, integrating AI and machine learning for automation and insightful analytics. With a focus on various deployment models like public and private clouds, the market serves sectors including healthcare, financial services, and government. The trend towards serverless computing and a preference for cloud services are key drivers, making cloud computing vital for Saudi Arabia's digital ecosystem. This growth is supported by the need for operational agility, scalability, and improved data security, positioning Saudi Arabia as a leader in cloud innovation. For detailed insights, Mordor Intelligence™ offers a comprehensive analysis of Saudi Arabia's Cloud Services market, including size, share, growth rate, and a forecast outlook, available as a free report PDF download.
