Public Cloud - Saudi Arabia

Saudi Arabia

Revenue in the Public Cloud market is projected to reach €2,170.00m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of €719.10m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.53%, resulting in a market volume of €4,867.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach €131.20 in 2024.
In global comparison, most revenue will be generated in the United States (€360.20bn 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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Marché

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Comparaison de régions

Monnaie

Analyst Opinion

The Public Cloud market in Saudi Arabia is experiencing significant growth, driven by factors such as increasing adoption of digital technologies, rising awareness of cloud services, and the convenience offered by online platforms. The market's average growth rate is impacted by factors such as government initiatives, investments in infrastructure, and the growing demand for various cloud services.

Customer preferences: The rise of digital transformation in Saudi Arabia has led to a growing demand for Public Cloud Market solutions, as businesses seek to increase their efficiency and agility. This trend is driven by a shift towards remote work and the need for seamless collaboration and data management. Additionally, the rise of e-commerce and online shopping has led to a greater demand for cloud-based solutions to support online transactions and data storage. This trend is expected to continue as the country moves towards a more digitally-driven economy.

Trends in the market: In Saudi Arabia, the Public Cloud Market is experiencing a surge in demand for Software-as-a-Service (SaaS) solutions, with more businesses leveraging the benefits of cloud-based software for cost savings and scalability. This trend is expected to continue, driven by the country's growing adoption of digital transformation initiatives. Additionally, there is a growing shift towards hybrid cloud models, combining public and private clouds, to meet specific business needs. This trend has significant implications for industry stakeholders, as it presents opportunities for cloud service providers to offer more customized solutions and for businesses to improve their digital capabilities.

Local special circumstances: In Saudi Arabia, the Public Cloud Market is seeing significant growth due to the country's Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil. The government has implemented regulations to promote cloud adoption and drive digital transformation across industries. Additionally, the country's young and tech-savvy population, coupled with its high smartphone penetration rate, is fueling demand for cloud-based services and solutions. Furthermore, the conservative culture in Saudi Arabia has led to a preference for private cloud solutions, providing opportunities for local cloud providers to thrive.

Underlying macroeconomic factors: The Public Cloud Market in Saudi Arabia is heavily influenced by macroeconomic factors such as government initiatives to promote digital transformation, investment in infrastructure, and favorable regulatory policies. The country's strong economic growth and stable fiscal policies have created a conducive environment for the adoption of public cloud services. Additionally, the increasing demand for data storage and management solutions, coupled with advancements in technology, are driving the growth of the market. The government's focus on diversifying the economy and reducing dependence on oil revenues is also expected to further boost the public cloud market in Saudi Arabia.

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.