Data Center - Saudi Arabia

Saudi Arabia

Revenue in the Data Center market is projected to reach US$1.44bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.10bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.46%, resulting in a market volume of US$1.85bn by 2028.
In global comparison, most revenue will be generated in the United States (US$99.16bn in 2024).

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

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). 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 in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in Saudi Arabia is experiencing significant growth and development in recent years.

Customer preferences: Customers in the Saudi Arabian Data Center market are increasingly demanding reliable and secure data storage and management solutions. With the rise of digital transformation and the increasing reliance on technology, businesses and organizations in Saudi Arabia are generating and accumulating vast amounts of data. As a result, there is a growing need for robust and scalable Data Center infrastructure that can handle the storage, processing, and analysis of this data.

Trends in the market: One of the key trends in the Saudi Arabian Data Center market is the adoption of cloud computing. Many businesses and organizations are shifting their IT infrastructure to the cloud to benefit from its flexibility, scalability, and cost-effectiveness. This trend is driving the demand for Data Centers that can support cloud-based services and applications. Additionally, there is a growing interest in hybrid cloud solutions, where organizations combine public and private clouds to meet their specific needs and requirements. Another trend in the market is the increasing focus on cybersecurity. As data becomes more valuable and vulnerable to cyber threats, businesses and organizations are prioritizing the security of their Data Centers. This includes implementing advanced security measures, such as firewalls, encryption, and intrusion detection systems, to protect sensitive data from unauthorized access and cyber attacks.

Local special circumstances: Saudi Arabia has a rapidly growing digital economy, with the government actively promoting digital transformation and innovation. The Vision 2030 initiative, launched by the Saudi Arabian government, aims to diversify the country's economy and reduce its dependence on oil. As part of this initiative, there is a strong focus on developing the IT sector and supporting the growth of Data Centers. The government is investing in infrastructure development and providing incentives for businesses to establish Data Centers in the country.

Underlying macroeconomic factors: The growth of the Data Center market in Saudi Arabia is also influenced by several macroeconomic factors. The country has a young and tech-savvy population, which is driving the demand for digital services and creating opportunities for Data Center providers. Additionally, the increasing internet penetration and smartphone adoption rates in Saudi Arabia are fueling the demand for Data Center services. Furthermore, the government's efforts to attract foreign investment and diversify the economy are attracting international Data Center providers to enter the Saudi Arabian market. This is contributing to the growth of the market and bringing in advanced technologies and expertise. In conclusion, the Data Center market in Saudi Arabia is experiencing significant growth and development due to customer preferences for reliable and secure data storage solutions, the adoption of cloud computing, the increasing focus on cybersecurity, the government's support for digital transformation, and underlying macroeconomic factors such as a young population and government initiatives to attract foreign investment.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. 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, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

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 and the Russia-Ukraine war is considered at a country-specific level.