Saudi Arabia Cloud Services - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Saudi Arabia Cloud Services - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

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.

Key Highlights

• 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.

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