Public Cloud - Saudi Arabia

Saudi Arabia

Revenue in the Public Cloud market is projected to reach US$2,340.00m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$775.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.29%, resulting in a market volume of US$5,194.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$141.50 in 2024.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud 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 public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Customers in Saudi Arabia are increasingly adopting public cloud services due to the numerous benefits they offer. Public cloud services provide scalability, flexibility, and cost-effectiveness, allowing businesses to easily scale their infrastructure and pay only for the resources they use. This is particularly attractive to small and medium-sized enterprises (SMEs) in Saudi Arabia, as it allows them to access advanced technologies and capabilities without the need for significant upfront investments. Additionally, public cloud services offer high levels of security and reliability, ensuring that customer data is protected and accessible at all times.

Trends in the market: One of the key trends in the public cloud market in Saudi Arabia is the increasing demand for Software-as-a-Service (SaaS) solutions. SaaS allows businesses to access and use software applications over the internet, eliminating the need for on-premises infrastructure and maintenance. This trend is driven by the desire for cost savings and operational efficiency, as well as the need for seamless collaboration and remote work capabilities. As a result, SaaS providers in Saudi Arabia are experiencing strong growth and are expanding their offerings to cater to the diverse needs of businesses across various industries. Another trend in the market is the growing adoption of hybrid cloud solutions. Hybrid cloud combines the benefits of public and private clouds, allowing businesses to leverage the scalability and cost-effectiveness of the public cloud while maintaining control over sensitive data and applications in a private cloud environment. This trend is driven by the need for greater flexibility and agility, as well as regulatory requirements that mandate the protection of certain types of data. As a result, public cloud providers in Saudi Arabia are expanding their offerings to include hybrid cloud solutions and partnering with local data centers to ensure compliance with data sovereignty regulations.

Local special circumstances: Saudi Arabia has made significant investments in its digital infrastructure and is actively promoting the adoption of cloud computing as part of its Vision 2030 plan. The government has launched initiatives such as the National Transformation Program and the Cloud First Policy, which aim to accelerate the adoption of cloud services and drive digital transformation across various sectors. These initiatives have created a favorable environment for public cloud providers in Saudi Arabia, attracting both domestic and international players to the market.

Underlying macroeconomic factors: The growth of the public cloud market in Saudi Arabia is also influenced by underlying macroeconomic factors. The country has a young and tech-savvy population, with a high smartphone penetration rate and a strong appetite for digital services. Additionally, the COVID-19 pandemic has accelerated the adoption of cloud services, as businesses in Saudi Arabia have had to adapt to remote work and digital collaboration. The government's focus on diversifying the economy and reducing dependence on oil has also driven the demand for cloud services, as businesses seek to innovate and transform their operations to remain competitive in a rapidly changing global landscape.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. 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.