Public Cloud

Saudi Arabia

Highlights

Revenue in the Public Cloud market is projected to reach US$2.34bn in 2024.
Platform as a Service dominates the market with a projected market volume of US$731.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.29%, resulting in a market volume of US$5.19bn by 2029.
In global comparison, most revenue will be generated United States (US$388.50bn in 2024).

Key regions:

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 definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Public Cloud market in Saudi Arabia is rapidly growing, fueled by factors such as increasing adoption of digital technologies, growing awareness about the benefits of online services, and the convenience offered by various cloud solutions. The market's average growth rate is influenced by factors such as the country's strong digital infrastructure, growing demand for cost-effective solutions, and the government's initiatives to promote digital transformation in various industries.

Customer preferences: The rapid adoption of digital transformation in Saudi Arabia has led to a growing demand for public cloud services, as businesses and consumers alike seek more efficient and cost-effective solutions. This trend is driven by the increasing reliance on online and mobile platforms for daily activities such as shopping, banking, and entertainment. Additionally, the government's initiatives to promote e-governance and e-commerce have further bolstered the demand for public cloud services, as organizations seek to modernize their operations and stay ahead of the competition.

Trends in the market: In Saudi Arabia, the Public Cloud Market is experiencing significant growth, with a rising demand for cloud-based solutions in various industries such as healthcare, education, and finance. This trend is expected to continue as organizations increasingly shift towards digitalization and remote work models. Additionally, the government's initiatives to promote digital transformation and attract foreign investments are also contributing to the growth of the public cloud market. This presents opportunities for stakeholders to tap into this market and offer innovative solutions tailored to the specific needs of the Saudi Arabian market. However, with the increasing adoption of public cloud services, there are also concerns around data privacy and security, which could potentially hinder the growth of the market. Thus, it is crucial for industry stakeholders to address these concerns and provide robust solutions to maintain the trajectory of this trend.

Local special circumstances: In Saudi Arabia, the Public Cloud Market is experiencing rapid growth due to the country's ambitious plans for economic diversification and modernization. The government's Vision 2030 initiative aims to transform the economy and reduce dependence on oil, driving the demand for cloud services across industries. Additionally, the country's strict data privacy laws and regulations have created a unique market environment, with cloud providers offering specialized solutions to comply with local data protection requirements.

Underlying macroeconomic factors: The Public Cloud Market in Saudi Arabia is significantly impacted by macroeconomic factors such as the country's oil-dependent economy, government initiatives to diversify the economy, and increasing investments in technology. As Saudi Arabia continues to move towards a knowledge-based economy, there is a growing demand for cloud services to support digital transformation and innovation. Moreover, the country's young and tech-savvy population, along with the growing adoption of smartphones and internet penetration, is also driving the demand for public cloud services. Additionally, the government's Vision 2030 plan, which aims to reduce the country's reliance on oil and focus on technology and innovation, is expected to further boost the growth of the public cloud market in Saudi Arabia.

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.