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. Data generation is significantly growing with internet penetration. Securely storing such a large volume of data is challenging. Many firms still store client and corporate data in actual data centers. As more businesses adopt cloud computing, cloud server providers anticipate offering more cloud-based data centers at cheaper costs. Competitive prices due to the availability of various cloud service providers will benefit enterprises. 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.
• The coronavirus pandemic catalyzed Saudi Arabia's public healthcare system to undergo a digital revolution. The COVID-19 outbreak burdened the Kingdom's healthcare system, highlighting the need for more comprehensive apps with features like platforms for scheduling vaccinations and remote access to patient details. To better serve the nation's expanding population of more than 35 million people, the Saudi Ministry of Health has been moving forward with the deployment of multi-cloud solutions built on VMware Cloud Foundation. A variety of public healthcare providers, like hospitals, clinics, and pharmacies, can now receive secure, cloud-based services from the ministry, considerably increasing their efficiency and allowing them to expand and innovate.
• 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.

Saudi Arabia Cloud Services Market Trends

Economic Benefits Leading to Cloud Adoption is Expected to Drive the Market Growth

• The economy of the Kingdom of Saudi Arabia is rapidly reviving. According to the Saudi Arabian Monetary Agency, Foreign Direct Investment in Saudi Arabia increased by USD 1965 Million in the first quarter of 2022. Such a rise in the GDP and FDI indicates that the country's revenue from different sectors is increasing; similarly, there may be growth in the technology industry. Such a huge economic rise will drive the studied market.
• Taking advantage of the natural resources in the Kingdom of Saudi Arabia and its physical and cultural location between three continents, the Saudi economy has grown in many sectors. As a result of this expansion, the country established a sound economic foundation, grew to rank among the twenty most significant economies in the world, and joined the G20 actively. Saudi Arabia, supported by a robust financial system, a strong banking industry, and massive government corporations based on a highly skilled Saudi workforce, is one of the major players in the world economy and oil markets.
• Further, with several investment programs under the Public Investment Fund and prominent corporations, it is anticipated that the pace of this structural transformation will continue in the years to come. The localization of knowledge and innovative ideas is also anticipated. Such vision policies are expected to drive the economy of the market. This will significantly benefit the cloud services providers so that they approach public firms to deploy cloud services, enabling them to expand their market share.
• According to the Governor of the Digital Government Authority (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 End-User Industry is Expected to Hold Significant Market Share

• The growth in the adoption of cloud services in the country's healthcare sector is largely governed by the efforts of the government to digitize the healthcare sector. Saudi Arabia's Ministry of Health (MoH) accelerated the transformation of its IT systems with the onset of COVID-19, which added strain to healthcare systems and increased the need for robust applications, such as booking platforms for vaccinations and remote access to patient records. Since the pandemic, this has accelerated the adoption of cloud services in the healthcare sector.
• Due to the COVID-19 pandemic, Saudi's healthcare industry was forced to adapt to new ways of working at a pace as the sudden and rapid increase in patient numbers necessitated a more consolidated and connected approach to care. This boosted the demand for cloud services in the country to provide patients with access to streamlined, efficient, and high-quality care regardless of location.
• Adopting cloud services in the healthcare sector enables providers to switch from using labor-intensive, energy-hungry servers and instead manage their IT operations securely from the cloud. This accelerated the demand for cloud services in the country's healthcare institutions.
• Various cloud service providers, such as Vmare and STC Cloud, are working with the Ministry of Health and private healthcare providers to bring the benefits of innovative technology to bear for all patients in the Kingdom. Cloud technologies cut down on paperwork and allow new doctors easy access to patient's medical information, protected by cybersecurity solutions, thus boosting the adoption in the healthcare sector.
• The Ministry of Health seeks to achieve the highest levels of excellence in healthcare in line with the aims of Saudi Vision 2030. The country is deploying a multi-cloud foundation to optimize operations, increase efficiency, and drive innovation across the country's healthcare providers.
• For instance, in June 2022, Saudi Arabia's Ministry of Health (MoH) deployed multi-cloud solutions from VMware to digitally transform the country's public healthcare sector. The MoH can now offer secure, cloud-based services to public healthcare providers, including hospitals, clinics, and pharmacies, significantly boosting its efficiency and enabling them to grow and innovate.
• 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 owing 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 September 2022, DULSCO Group, one of the significant workforce, environmental, and talent solutions providers, was to use Oracle Fusion Cloud Applications Suite as part of its digital transformation effort to improve customer and employee experience, automate processes, and boost operating efficiencies.

In September 2022, to implement the Earth Observation and Science Program, Google Cloud partnered with the Saudi Data & Artificial Intelligence Authority (SDAIA), the Ministry of Environment, Water and Agriculture (MEWA), and Climate Engine. The program laid the path for SDAIA and MEWA to lead climate action using artificial intelligence. It was expected to assist with addressing environmental, water, and agricultural concerns brought on by climate change.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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