Saudi Arabia cloud computing market:
Saudi Arabia cloud computing market growth is propelled by the rise in need for digital transformation, lower capital expenditure, and increased efficiency. Growing investments by Saudi government and rising emergence of multinationals in the country is also propelling the market. For instance, in 2023 the government announced an investment of USD 9 billion in advanced technologies during Leap23. In addition, the Saudi’s initiatives such as Saudi cloud strategy promote the use of cloud technology in both public & private sectors, improve cybersecurity, and provide new employment opportunities in the country. This strategy is aligned with the National Transformation Program 2020 and Saudi Vision 2030, aiming to reform the country’s economy and civilization. Further, multinationals including Microsoft, Oracle, and Zoom planned to make major investments in the country to accelerate advanced technologies, digital entrepreneurship, and tech startups to promote Saudi as the biggest market in MENA. For instance, Investment of USD 2.1 billion in global super-scaler cloud, is announced by Microsoft in Saudi Arabia.
Additionally, the rising number of internet users significantly contributes to the Saudi cloud computing market. Data volume is consistently increasing with internet penetration led more organizations are adapting cloud computing as this technology allows data storage in less physical space, provides high speed data access, high scalability, increased productivity, enhanced performance, and excellent reliability. Cloud service providers are predicted to set up more cloud-based data centers is predicted to fuel the market in the forecast period.
Moreover, the rising deployment and adoption of cloud technology across various industries including automotive, banking, entertainment, and retail is surging the demand for cloud technology. Addition to this, rising collaborations and acquisitions to provide enhanced customer experience, and satisfactory services will drive the market growth. The collaboration of the Saudi Arabian Monetary Authority with local banks and other shareholders to deploy an integrated payment strategy aims to increase electronic transactions by 30% of overall transactions leading to an increase in data volume. Similarly, in 2020, Saudi Aramco Development Co. a subsidiary of Aramco International collaborated with Google Cloud Services to offer cloud services between enterprises in Saudi, is predicted to encourage several organizations to adopt cloud services across country.
However, the growth of Saudi Arabia cloud computing market hindered due to high dependency on external expertise to balance shortage of skilled professionals led to increase expenses and delays in project implementation coupled with data security and privacy concerns.
Market segmentation:
Based on industry vertical, Saudi Arabia cloud computing market is divided into BFSI, IT & Telecom, Government, Media & Entertainment, and Healthcare. The healthcare segment is predicted to grow with the highest CAGR due to the government’s initiatives to digitalize healthcare facilities. The rising use of cloud computing technology in the healthcare sector as cloud technology reduces paperwork, efficiently maintains data, and provides doctors remote access to patients’ medical information. These factors propel the growth of cloud computing in the healthcare sector.