Saudi Arabia Data Center Market
Saudi Arabia Data Center Market Size More Than Doubles to Reach USD 2.1 Billion by 2029
Published | 14 March 2023
Saudi Arabia data center market is flourishing due to increased enterprise adoption of high-end cloud computing and complexities in data centers due to scalability.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Saudi Arabia data center market size at USD 1,083.03 million in 2022. During the forecast period between 2023 and 2029, the Saudi Arabia data center market size is projected to grow at an impressive CAGR of 10.21% reaching a value of USD 2,123.86 million by 2029. The Saudi Arabia data center market is attracting investors due to the country's high internet and social media penetration as a result of COVID-19, the deployment of 5G services, and improved inland connectivity. The implementation of the Personal Data Protection Law in the country will ensure the confidentiality of citizens' data, further boosting the data center market.
Saudi Arabia Data Center Market - Overview
A data center is a physical location within an organization where IT operations and tools for processing, storing and distributing data and applications are located. Also, a data center in an organization is constructed on a network of software programs and storage options that are intended to share knowledge and data. The switch from conventional on-premises physical servers to virtual network-based data centers is fueling Saudi Arabia's data center growth, due to developments in multi-cloud computing. Many locations, including cloud-based and on-premises ones, can communicate with a modern enterprise data center.
Saudi Arabia Data Center Market – By End Use
Saudi Arabia data center market by end use is segmented into BFSI, Telecom & IT, Media & Entertainment, E-Commerce, Government, Healthcare, and Others. The IT & telecom end-user industry segment holds the highest market share. This category is being driven by an increase in the use of cutting-edge technology to improve existing infrastructure, as well as an increase in the amount of data produced by businesses.
The BFSI vertical is expected to grow at the fastest rate during the forecast period due to significant investments in banks' digital transformation. Red Hat Inc., for example, announced in April 2022 that Riyad Bank, a major bank in Saudi Arabia (KSA), has implemented a hybrid cloud strategy based on Red Hat's portfolio of open hybrid cloud technologies, which includes Red Hat OpenShift.
Impact of COVID-19 on Saudi Arabia Data Center Market
COVID-19 pandemic impacted the growth of Saudi Arabia data center market in 2020. The surge in demand for cloud computing network solutions, on the other hand, is a major impediment to market growth. As a result of the practical and complete lockdown, the data center market was primarily hampered by a lack of professional workforce availability. Furthermore, data center adoption is expected to increase in the healthcare, government, and BFSI sectors following the pandemic.
Saudi Arabia data center market is fiercely competitive. Prominent players in the market include Nikom IT Infrastructure Private Limited, Delta Group, Trimax IT IT Infrastructure & Services Limited, Cisco India, Arshiya Limited, Huawei, Sify Technologies, Arista, and Sterling & Wilson. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in the Saudi Arabia Data Center Market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Saudi Arabia Data Center Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Saudi Arabia Data Center Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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- Saudi Arabia Data Center Market - By Type (Corporate Data Centers, Web Hosting Data Centers); By IT Infrastructure (Servers, Storage, Enterprise Networking, Others); By End User (BFSI, Telecom & IT, Media & Entertainment, E-Commerce, Government, Healthcare, Others), Trend Analysis, Competitive Landscape & Forecast, 2019–2029
Publish Date: March 2023
Rising acceptance of smart devices, rising demand for analytics, cloud adoption, and advancements in wireless networking technologies may create opportunities for the growth of Saudi Arabia Data Center Market during the forecast period between 2023 and 2029.
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