Report Overview

Saudi Arabia Cloud Services Market - Industry Trends & Forecast Report, 2029

Saudi Arabia cloud services market size was estimated at USD 2,969.8 million in 2022. During the forecast period between 2023 and 2029, the size of Saudi Arabia cloud services market is projected to grow at a CAGR of 16.2% reaching a value of USD 8,469.48 million by 2029. Major growth drivers for Saudi Arabia cloud services market include growing focus on reducing capital expenditures, increasing recognition of digital business strategies, preference for Internet of Things (IoT), and quicker and easier cloud service implementation. The growing number of internet users contributes significantly to the country's cloud services sector. Data generation is increasing in tandem with internet penetration. It is difficult to secure such a big volume of data. Many businesses continue to keep client and corporate data in physical data centers. Cloud server vendors anticipate supplying additional cloud-based data centers at lower costs as more enterprises adopt cloud computing. Enterprises will benefit from competitive pricing due to the availability of multiple cloud service providers. This advancement will allow data to be stored in less physical area.

Saudi Arabia Cloud Services Market – Overview

Cloud computing refers to the method of storing, processing, and managing data on a network of remote computers hosted on the Internet rather than on a local server or a personal computer. It is a shared storage space which enables all network gadgets to retrieve data at the same time. Not only can cloud computing save money, but it also makes apps available to all network devices at any time and from any location. It also compares cloud computing to traditional computing and shows how cloud computing outperforms traditional computing. Cloud computing technology consists of both hardware and software that enables the delivery of services. Because of features such as access to a bigger network, on-demand service, pay-as-you-go benefits, resource pooling, business agility, fast flexibility, cost-cutting, and so on, the cloud computing services industry has a lot of potential. The global use of cloud computing services in various industries such as medical and healthcare, banking, financial services, and insurance, as well as the educational sector, determines the scope of future growth in the cloud services market.

Saudi Arabia Cloud Services Market

Growth Drivers

Cloud Adoption Offering Economic Benefits

The Kingdom of Saudi Arabia's economy is quickly rebounding. The International Monetary Fund (IMF) estimated Saudi Arabia's real GDP to rise by 7.6% in 2022, up from 3.2% in 2021. The oil sector, which was expected to grow at the fastest rate since 2003, played a major part in the economy's growth this year. As the country continues to reverse the 2020 oil production cuts imposed by the current OPEC+ agreement, production will rise by 14%. The non-oil sector will also contribute to economic growth as a result of improved domestic demand and the advancement of economic diversification projects. Foreign Direct Investments in Saudi Arabia climbed by USD 1,965 million in the first quarter of 2022, according to the Saudi Arabian Monetary Agency. Such a significant increase in GDP and FDI suggests that the country's revenue from all industries is expanding, with similar growth in the technology industry. This economic expansion will propel the market under consideration.

Restraints

High Dependence on Foreigners to Balance Skill Deficit

The growth of Saudi Arabia cloud services market may be restrained by high dependence on external sources to balance the skill deficit, as this can increase costs and potentially lead to delays in project implementation. In particular, if Saudi Arabia relies too heavily on external providers to provide the technical expertise necessary to implement and manage cloud services, this can result in increased costs and delays in project timelines. Moreover, the reliance on external sources for cloud services can also lead to concerns around data privacy and security, as external providers may not have the same level of knowledge or adherence to local regulations as internal teams. It can create additional challenges in ensuring data protection and maintaining compliance with local regulations.

Impact of COVID-19 on Saudi Arabia Cloud Services Market

COVID-19 pandemic transformed the way corporations operate. Due to increased demand caused by the pandemic, local firms are embracing cloud services to improve efficiency and scalability. Cloud computing can boost competitiveness by cutting costs, boosting flexibility and elasticity, and making better use of resources. Cloud services and features that can help businesses prosper include big data analytics, hybrid and multi-cloud clouds, storage, disaster recovery, and data backup.

Saudi Arabia Cloud Services Market

Segmental Coverage

Saudi Arabia Cloud Services Market – By Type

By type, Saudi Arabia cloud services market is divided into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) segments. The SaaS segment dominates the Saudi Arabia Cloud services market due to the increasing adoption of cloud-based software applications across a range of industries, as well as the benefits of SaaS such as lower upfront costs, ease of deployment, and scalability.

Saudi Arabia Cloud Services Market – By Deployment Model

Based on deployment model, Saudi Arabia cloud services market is divided into Private Cloud, Public Cloud, and Hybrid Cloud segments. The private deployment segment held the highest market share in 2022. Instead of the general public, a tiny individual has access to private clouds, which provide computing capabilities over a personal network or the internet. It offers enterprises scalability, self-service, elasticity, further customization, and controls hosted on an on-premises computer system. Furthermore, private clouds provide third-party providers with privacy and security by employing internal hosting and firewalls to assure high-level data protection. The hybrid deployment segment is likely to grow significantly over the forecast period. The hybrid implementation methodology is becoming increasingly common across industries. Many firms place a premium on establishing hybrid cloud models and smart strategies to help enhance business operations, cost efficiency, resource usage and consumption, user experience, and application modernization while maximizing advantages. Edge computing is also a crucial reason driving the rising usage of hybrid cloud architectures in enterprises across the world.

Saudi Arabia Cloud Services Market – By Organization Size

By organization size, Saudi Arabia cloud services market is bifurcated into Large Enterprises and SMEs segments. The large enterprises segment dominated the market in 2022. Remote working increases demand for cloud computing services by allowing collaborative teams to access formerly centralized data. Demand is influenced by factors such as reduced enhanced cooperation, lower operational costs, greater flexibility, and a shorter time to market. Large-scale enterprises can use cloud computing to automate typical processes and accomplish them more rapidly.

Saudi Arabia Cloud Services Market – By Application

By application, Saudi Arabia cloud services market is segmented into Asset Management, Customer Relationship Management, Enterprise Resource Management, Supply Chain Management, Project & Portfolio Management, and Business Intelligence.

Saudi Arabia Cloud Services Market – By Industry Vertical

By industry vertical, Saudi Arabia cloud services market is segmented BFSI, IT & Telecom, Government, Media & Entertainment, and Healthcare. The healthcare segment is expected to hold the highest market share during the forecast period. The government's initiatives to digitize the healthcare sector are significantly driving the increase in cloud service use in the country. During COVID-19 pandemic, Saudi Arabia's Ministry of Health (MoH) expedited the transformation of its IT systems, putting additional burden on healthcare systems and increasing the need for diverse applications such as vaccine booking platforms and remote access to patient records. After the pandemic, the deployment of cloud services in the healthcare sector has surged. Using cloud services in the healthcare sector allows providers to transition away from labor-intensive, energy-intensive servers and instead manage their IT operations securely from the cloud. The demand for cloud services in the country's healthcare institutions increased as a result. Several cloud service companies, including VMware and STC Cloud, are collaborating with the Ministry of Health and commercial healthcare providers to deliver the benefits of cutting-edge technology to all patients in the Kingdom. Cloud technologies reduce paperwork and provide new doctors with easy access to patients' medical information, increasing their use in the healthcare sector.

Competitive Landscape

Major players operating in Saudi Arabia cloud services market include Google LLC, Amazon Web Services Inc., Alibaba Cloud, Microsoft Corporation, Oracle Corporation, VMware, Inc., Salesforce Inc, Saudi Telecom Company, IBM Corporation, and SAP SE. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Infrastructure as a Service (IaaS)

• Platform as a Service (PaaS)

• Software as a Service (SaaS)

By Deployment Model

• Private Cloud

• Public Cloud

• Hybrid Cloud

By Organization Size

• Large Enterprises

• SMEs

By Application

• Asset Management

• Customer Relationship Management

• Enterprise Resource Management

• Supply Chain Management 

• Project & Portfolio Management

• Business Intelligence

By Industry Vertical

• BFSI

• It & Telecommunications

• Government

• Media & Entertainment

• Healthcare

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Cloud Services Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Government Policies and Initiatives
         2. Economic Benefits Leading to Cloud Adoption
      2. Restraints
         1. High Dependence on External Sources to Balance the Skill Deficit
      3. Opportunities
         1. Increasing Penetration of Technology Giants
      4. Challenges
         1. Compliance Issues, Migration Complexity, and Security Risks
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Cloud Services Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Infrastructure as a Service (IaaS)
         2. Platform as a Service (PaaS)
         3. Software as a Service (SaaS)
         4. Others
      2. By Deployment Model
         1. Private Cloud
         2. Public Cloud
         3. Hybrid Cloud
      3. By Organization Size
         1. Large Enterprises
         2. SMEs
      4. By Application
         1. Asset Management
         2. Customer Relationship Management
         3. Enterprise Resource Management
         4. Supply Chain Management
         5. Project & Portfolio Management
         6. Business Intelligence
         7. Others
      5. By Industry Vertical
         1. BFSI
         2. It & Telecommunications
         3. Government
         4. Media & Entertainment
         5. Healthcare
         6. Others (Manufacturing, Oil & Gas, Metals & Mining, Petrochemicals, Energy & Utilities, Pulp & Paper, Agriculture)
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Cloud Services Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Saudi Arabia Cloud Services Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Google LLC
   2. Amazon Web Services Inc.
   3. Alibaba Cloud
   4. Microsoft Corporation
   5. Oracle Corporation
   6. VMware, Inc.
   7. Salesforce Inc
   8. Saudi Telecom Company
   9. IBM Corporation
   10. SAP SE
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1.  Primary & Secondary Research
   2.  Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Saudi Arabia Cloud Services Segmentation

Figure 2       Saudi Arabia Cloud Services Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Saudi Arabia Cloud Services Market Size, By Value (USD Million), 2019–2029

Figure 5       Saudi Arabia Cloud Services Market Share, By Type, By Value, 2019–2029

Figure 6       Saudi Arabia Cloud Services Market Share, By Deployment Models, By Value, 2019–2029

Figure 7       Saudi Arabia Cloud Services Market Share, By Organization Size, By Value, 2019–2029

Figure 8       Saudi Arabia Cloud Services Market Share, By Application, By Value, 2019–2029

Figure 9       Saudi Arabia Cloud Services Market Share, By Industry Vertical, By Value, 2019–2029

List of Tables

Table 1        Saudi Arabia Cloud Services Market Size, By Value (USD Million), 2019–2029

Table 2        Saudi Arabia Cloud Services Market Size, By Type, By Value, 2019–2029

Table 3        Saudi Arabia Cloud Services Market Size, By Deployment Models, By Value, 2019–2029

Table 4        Saudi Arabia Cloud Services Market Size, By Organization Size, By Value, 2019–2029

Table 5        Saudi Arabia Cloud Services Market Size, By Application, By Value, 2019–2029

Table 6        Saudi Arabia Cloud Services Market Size, By Industry Vertical, By Value, 2019–2029

Table 7        Google LLC Company Overview

Table 8        Google LLC Financial Overview

Table 9        Amazon Web Services Inc. Company Overview

Table 10      Amazon Web Services Inc. Financial Overview

Table 11      Alibaba Cloud Company Overview

Table 12      Alibaba Cloud Financial Overview

Table 13      Microsoft Corporation Company Overview

Table 14      Microsoft Corporation Financial Overview

Table 15      Oracle Corporation Company Overview

Table 16      Oracle Corporation Financial Overview

Table 17      VMware, Inc. Company Overview

Table 18      VMware, Inc. Financial Overview

Table 19      Salesforce Inc Company Overview

Table 20      Salesforce Inc Financial Overview

Table 21      Saudi Telecom Company Overview

Table 22      Saudi Telecom Company Financial Overview

Table 23      IBM Corporation Company Overview

Table 24      IBM Corporation Financial Overview

Table 25      SAP SE Company Overview

Table 26      SAP SE Financial Overview