Infrastructure as a Service - Saudi Arabia

Revenue in the Infrastructure as a Service market is projected to reach US$728.20m in 2024.
0.0 dominates the market with a projected market volume of 0.0 in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.01%, resulting in a market volume of US$1.74bn by 2029.
In global comparison, most revenue will be generated United States (US$77.05bn in 2024).

Definition:

Infrastructure as a Service (IaaS) refers to the type of public cloud service that provides virtualized computing resources. IaaS offers on-demand access to virtual machines, storage, and networking components, thus allowing users to build, deploy, and manage IT infrastructure without the need to invest in physical hardware. IaaS offers scalability, flexibility, and cost-efficiency by requiring users to pay only for the resources they consume. The IaaS market includes the companies that provide these types of public cloud resources and services to individuals, businesses, and organizations. A typical example of this type of service is Amazon Web Services (AWS). AWS provides a wide range of virtual machines, storage, and networking resources that users can access on demand to build and manage their IT infrastructures.

Additional Information:

The Infrastructure as a Service (IaaS) market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the IaaS market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Server capabilities, such as Amazon Elastic Compute Cloud (EC2), Azure IaaS, and Google Compute Engine (GCE)
Computing resources, such as Amazon Elastic Compute Cloud (EC2), Azure IaaS, and Google Compute Engine (GCE)
Storage resources, such as Amazon Elastic Block Store (EBS), Azure Blob Storage, and Google Cloud
Network capabilities, such as Google Cloud Interconnect and Alibaba Cloud Express Connect

Business-Process-as-a-Service (BPaaS), such as payroll management and accounting solutions via ADP Workforce Now, Intuit QuickBooks Online, Workday, and Oracle NetSuite
Desktop-as-a-Service (DaaS), such as Amazon WorkSpaces, Microsoft Windows Virtual Desktop, VMware Horizon Cloud, and Citrix Virtual Apps and Desktops
Platform-as-a-Service (PaaS), such as Heroku, AWS Elastic Beanstalk, Google App Engine, Microsoft Azure App Service, and IBM Cloud Foundry
Software-as-a-Service (SaaS), such as Google Workspace, Microsoft 365, Salesforce, Zoom, and Slack
System infrastructure software, such as Microsoft Windows Server, Linux distributions, VMware for virtualization, and Cisco’s networking software
Private cloud services, such as IBM Cloud Private, Microsoft Azure Stack HCI, and VMware vCloud Suite

The Infrastructure as a Service market in the Public Cloud market of Saudi Arabia is growing at an average rate, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of digital health services, and the convenience of online health solutions.

Customer preferences: The Infrastructure as a Service Market within the Public Cloud Market in Saudi Arabia is experiencing a significant increase in demand for cloud-based solutions, driven by the country's rapid digital transformation. In particular, there is a growing preference for Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, as businesses and government organizations look to streamline operations and increase efficiency. Additionally, the rise in remote work arrangements due to the COVID-19 pandemic has further accelerated the adoption of cloud-based services, with companies looking to enhance their digital capabilities and support a distributed workforce.

Trends in the market: In Saudi Arabia, the Infrastructure as a Service Market within the Public Cloud Market is experiencing a surge in demand due to the country's rapid digital transformation. This trend is expected to continue as more organizations adopt cloud-based solutions for their IT infrastructure needs. Additionally, there is a growing trend of hybrid cloud adoption, where companies are utilizing both private and public cloud services for increased flexibility and cost-effectiveness. This trend is significant as it allows organizations to scale their IT infrastructure according to their needs and reduces the burden of managing on-premises data centers. However, it also poses challenges for industry stakeholders, such as ensuring data security and compliance in a hybrid environment. Overall, the trajectory of these trends is towards a more advanced and integrated cloud ecosystem in Saudi Arabia, providing opportunities for cloud service providers and IT solution providers.

Local special circumstances: In Saudi Arabia, the Infrastructure as a Service Market within the Public Cloud Market is heavily influenced by the country's push towards digital transformation and the government's initiatives to increase ICT investments. This has resulted in a growing demand for cloud services, particularly among small and medium-sized enterprises. Additionally, the country's regulatory environment, which prioritizes data privacy and security, has also played a significant role in shaping the market landscape. These factors have made Saudi Arabia a highly attractive market for international cloud service providers looking to expand their presence in the region.

Underlying macroeconomic factors: The Infrastructure as a Service Market within the Public Cloud Market in Saudi Arabia is deeply impacted by macroeconomic factors such as government initiatives to promote digital transformation, favorable policies and regulations for cloud adoption, and increasing investments in digital infrastructure. In addition, the country's strong economic growth, driven by its oil and gas industry, has led to a growing demand for cloud services in various industries such as oil and gas, healthcare, and finance. Furthermore, the country's Vision 2030 plan, which aims to diversify the economy and reduce its reliance on oil, has also led to a surge in demand for cloud services to support the growth of non-oil industries.

Data coverage:

The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Together with platform as a service (PaaS) and infrastructure as a service (IaaS), software as a service (SaaS) is one of the three primary tiers of cloud computing. It allows businesses to redirect resources away from IT hardware, software, and personnel expenses, and towards other business needs. Currently, the most prominent companies in the SaaS market are Microsoft, Salesforce, Oracle, SAP, and Google.