Report Overview

Saudi Arabia Data Center Market- Industry Trends & Forecast Report, 2029

Saudi Arabia data center market size was estimated at USD 1,083.03 million in 2022. During the forecast period between 2023 and 2029, Saudi Arabia data center market size is projected to grow at a CAGR of 10.21% reaching a value of USD 2,123.86 million by 2029. The deeper internet and social media penetration across the country, as a result of COVID-19, the deployment of 5G services, and improved inland connectivity, among other factors, make the Saudi Arabia data center market appealing to investors. The introduction of the Personal Data Protection Law in the country will protect the confidentiality of citizens' data, boosting the data center market even further.

Saudi Arabia Data Center Market - Overview

A data center is a physical facility in an enterprise that houses IT operations and equipment used to store, process, and distribute data and applications. Also, a data center in an enterprise is built on a network of computer applications and storage solutions that are designed to share information and data. Because of advancements in multi-cloud computing, the shift from traditional on-premises physical servers to virtual network-based data centers is driving Saudi Arabia data center growth. A modern enterprise data center can communicate with multiple sites, both cloud and on-premises.

Growth Drivers

Rising Investments in Big Data and IoT

Several Saudi Arabian enterprises are investing in Big Data and IoT technology as a result of the growing acceptance of smart devices, increased demand for analytics, cloud adoption, and the development of wireless networking technologies. These factors are driving demand for Saudi data centers.

Restraints

Rising Data Privacy

Rising data privacy concerns and increasing demand for managed services are acting as major barriers to early adoption, impeding market growth. On the contrary, an increase in data center technology spending as well as increased adoption of multi-cloud and network upgrades to support 5G technology are expected to provide lucrative opportunities for data center market expansion during the forecast period.

Impact of COVID-19 on Saudi Arabia Data Center Market

The introduction of COVID-19 adversely affected the growth of the data center market in 2020. However, the surge in demand for cloud computing network solutions is a major impediment to market growth. Data center market was primarily hampered by a lack of professional workforce availability as a result of the practical and complete lockdown. Also, the post-pandemic period is expected to see a surge in data center adoption across the healthcare, government, and BFSI sectors.

Saudi Arabia Data Center Market

Segmental Coverage

Saudi Arabia Data Center Market - By Type

Saudi Arabia data center market is divided into Corporate Data Centers and Web Hosting Data Centers segments.

Saudi Arabia Data Center Market - By IT Infrastructure

Based on application, the Saudi Arabia data center market is divided into Servers, Storage, Enterprise Networking, and other segments. The storage segment is registered to hold the highest market share. A data center is a facility that uses a complex network, computing, and storage infrastructure to provide shared access to applications and data.

Saudi Arabia Data Center Market - By End Use

Based on end use, the Saudi Arabia data center market is divided into BFSI, Telecom & IT, Media & Entertainment, E-Commerce, Government, Healthcare, and other segments. Amongst them, the IT & telecom end-user segment dominates the market. This category is being driven by an increase in the use of innovative technology to improve the current infrastructure and an increase in the amount of data that businesses are producing.

Due to significant investments in the banks' digital transformation, the BFSI vertical is expected to develop at the fastest rate during the projected period. For instance, open-source software company Red Hat Inc. 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.

Competitive Landscape

Competition in Saudi Arabia data center market is intense. Major companies in the market include Nikom IT Infrastructure Private Limited, Delta Group, Trimax IT Infrastructure & Services Limited, Cisco India, Arshiya Limited, Huawei, Sify Technologies, Arista, and Sterling & Wilson. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

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

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Data Center Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Adoption of Cloud Computing
         2. Increasing Private and Public Investments in Building Data Centers
      2. Restraints
         1. High Risks of Hacking
         2. High Initial Investment and Management Cost
      3.  Opportunities
         1. Flourishing E-Commerce Sector
      4. Challenges
         1. High Power Consumption and Carbon Emission
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Data Center Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Corporate Data Centers
         2. Web Hosting Data Centers
      2. By IT Infrastructure
         1. Servers
         2. Storage
         3. Enterprise Networking
         4. Others
      3. By End User
         1. BFSI
         2. Telecom and IT
         3. Media and Entertainment
         4. E-Commerce
         5. Government
         6. Healthcare
         7. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Data Center Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Saudi Arabia Data Center Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Nikom IT Infrastructure Private Limited
   2. Delta Group
   3. Trimax IT Infrastructure & Services Limited
   4. Cisco India
   5. Arshiya Limited
   6. Huawei
   7. Sify Technologies
   8. Arista
   9. Sterling & Wilson
   10. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.  Qualitative Research
      1.  Primary & Secondary Research
   2.  Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information in case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Saudi Arabia Data Center Segmentation

Figure 2       Saudi Arabia Data Center Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Saudi Arabia Data Center Market Size, By Value (USD Million), 2019–2029

Figure 5       Saudi Arabia Data Center Market Share, By Type, By Value, 2019–2029

Figure 6       Saudi Arabia Data Center Market Share, By IT Infrastructure, By Value, 2019–2029

Figure 7       Saudi Arabia Data Center Market Share, By End User, By Value, 2019–2029

List of Tables

Table 1        Saudi Arabia Data Center Market Size, By Value (USD Million), 2019–2029

Table 2        Saudi Arabia Data Center Market Size, By Type, By Value, 2019–2029

Table 3        Saudi Arabia Data Center Market Size, By IT Infrastructure, By Value, 2019–2029

Table 4        Saudi Arabia Data Center Market Size, By End User, By Value, 2019–2029

Table 5        Nikom IT Infrastructure Private Limited Company Overview

Table 6        Nikom IT Infrastructure Private Limited Financial Overview

Table 7        Delta Group Company Overview

Table 8        Delta Group Financial Overview

Table 9        Trimax IT Infrastructure & Services Limited Company Overview

Table 10      Trimax IT Infrastructure & Services Limited Financial Overview

Table 11      Cisco India Company Overview

Table 12      Cisco India Financial Overview

Table 13      Arshiya Limited Company Overview

Table 14      Arshiya Limited Financial Overview

Table 15      Huawei Company Overview

Table 16      Huawei Financial Overview

Table 17      Sify Technologies Company Overview

Table 18      Sify Technologies Financial Overview

Table 19      Arista Company Overview

Table 20      Arista Financial Overview

Table 21      Sterling & Wilson Company Overview

Table 22      Sterling & Wilson Financial Overview