The Saudi Arabia Cloud Computing Market is projected to grow at a CAGR of 35.5% over the next decade. The key factors contributing to the growth of the Saudi Arab cloud computing industry are the various government initiatives to promote digitalization in the country. In 2016, the government launched the National Transformation Program with Vision 2030 in mind. The ideas in this program are aimed at creating employment and diversifying the economy.
With technology being used in almost every part of the world, the Saudi government decided to use the NTP to digitally empower all sectors of the economy, including banking, finance, government, manufacturing, and healthcare. The Saudi government is also concentrating on the e-government concept in order to cut expenses, expand facilities, save time, and improve overall effectiveness and performance in the public sector. Throughout the Kingdom, ‘YESSER’ has served as the umbrella body and overall controller of all procedures, events, and other issues and actions relevant to the implementation of e-government.
The entrance of global cloud computing giants into the Saudi Arabian cloud computing sector is expected to have a positive impact. In December, Saudi Aramco and Google Cloud signed an agreement to provide services to Saudi Arabia customers. Saudi Telecom Company (STC) and eWTP Arabia, a venture capital firm, have announced a collaboration with Alibaba Cloud to provide high-performance public cloud services in Saudi Arabia.
Segment overview
On the basis of Service Model, The Saudi Arabia cloud computing market is categorized into three models: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). The Software-as-a-Service model dominates the Saudi Arabia cloud computing market. The growth is attributed to the benefits of low maintenance, cost-flexibility, and ease of deployment. The IaaS segment is projected to grow at significant CAGR over the forecast period. The high growth rate for IaaS service model is due to fact that regional market players are aggressively targeting the IaaS market segment in the country.
On the basis of Deployment Model, The Saudi Arabia cloud computing market is segmented into public cloud, private cloud, and hybrid cloud. The private cloud deployment model held the major share of the Saudi Arabia cloud computing market. The benefits of private cloud services, including improved data control and lower security risks, are the key drivers of segment larger adoption. The hybrid cloud model is expected to grow at the highest CAGR during the forecast period (2021-2030). The government is encouraging a lot of new technologies that generate various types of workloads that can be handled by different types of data centers, leading to an increasing need for hybrid model.
