Saudi Arabia Enterprise ICT Market Analysis and Future Outlook by Segments (Hardware, Software and IT Services)

Saudi Arabia Enterprise ICT Market Report Overview

The Saudi Arabia Enterprise ICT Country Intelligence Report, a new Country Intelligence Report by GlobalData, summarizes key findings from GlobalData’s ICT Customer Insight Survey carried out in H1-2023 and GlobalData’s Market Opportunity Forecasts to 2027: Saudi Arabia. It reveals an executive-level overview of how the overall ICT budgets and their allocations towards various segments have changed for enterprises in the country in 2023 compared to 2022 and ICT revenue opportunity with detailed forecasts of key indicators up to 2027. The report provides a detailed analysis of Saudi Arabia’s enterprise ICT market trends and growth drivers based on GlobalData’s ICT Customer Insight Survey and GlobalData’s Market Opportunity Forecasts.

Annual Change in Enterprise ICT Budget Allocation in Saudi Arabia (2021-22 Vs. 2022-23)

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The report also discusses the market growth inhibitors impacting Saudi Arabia’s overall ICT market. It sheds focus on enterprise ICT budget allocations and ICT revenue opportunities covering 18 solution areas, segmental analysis, and vertical analysis, as well as a review of key macroeconomic and regulatory trends, and government initiatives. The report also includes a brief profile of some of the key ICT vendors within the country.

GlobalData’s ICT customer insight survey reveals a positive outlook for enterprise ICT spending in Saudi Arabia, with most respondents, more than 82% from the country, claiming that there has been an increase in the enterprise ICT budget in 2023 compared to 2022. This is over 20 percentage points (p.p.) higher than the percentage who claim that there was an increase in their ICT budget in 2022-23 compared to 2021-22. This upward trend is paving the way for a promising opportunity for optimistic growth in ICT revenue. The rise in investment signifies enterprises’ willingness to allocate a budget toward technological advancements.

Saudi Arabia’s overall ICT market was pegged at over $24 billion in 2022 and is expected to grow at a CAGR of more than 11% during 2022-2027 to reach over $42 billion in 2027 driven by digital transformation initiatives in the energy, finance, and manufacturing, retail sectors, and government’s digital strategy with greater emphasis on giga-projects, smart cities, and e-governance.

Saudi Arabia Total ICT Revenue Opportunity ($Billion) 2022-2027

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Saudi Arabia Enterprise ICT Market Regulatory Highlights

• 5G and non-terrestrial networks (NTN),
• National plan for digital transformation,
• Vision 2030 goals,
• National strategy for data and AI, etc.

Saudi Arabia Enterprise ICT Revenue Opportunity – Segment Analysis

GlobalData’s survey findings suggest that enterprise ICT budget allocations for all ICT products and services areas in Saudi Arabia have increased in 2023 compared to 2022. For ‘ICT services,’ more than 70% of respondents claim that their enterprise’s ICT budget allocations have increased in 2023 compared to 2022.

Annual Change in Distribution of Enterprise ICT Spending, By ICT Products/Services in 2023

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According to GlobalData, Saudi Arabia’s ICT market would see a majority share of its revenue come from the IT services segment over the forecast period. The report also discusses the enterprise ICT revenue opportunity across IT software and IT hardware segments over the forecast period.

• IT Services
• IT Software
• IT Hardware

Saudi Arabia Total ICT Revenue Opportunity, by Segment ($Billion) 2022-2027

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Saudi Arabia Enterprise ICT Market Dynamics – Drivers, Trends and Challenges

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Saudi Arabia Enterprise ICT Market by Infrastructure Segments – Services, Software, and Hardware

IT Services – Segment Outlook

GlobalData’s survey findings suggest that the enterprise ICT budget allocations across all ‘services’ categories in Saudi Arabia have increased in 2023 compared to 2022. Over 70% of respondents confirmed an increase in their enterprise ICT budget for overall ‘services’ in 2023 compared to 2022.

Annual Change in Saudi Arabia Enterprise ICT Services Budget Allocations

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The ICT services market in Saudi Arabia was pegged at over $15 billion in 2022 and is predicted to grow at a CAGR of more than 11% over 2022-2027 to reach over $26 billion in 2027. The growth of the ICT services market in the country is largely driven by the government-led digitalization plans which necessitates implementation, maintenance, and upgradation of applications and infrastructure being employed by both the public and private sector enterprises undergoing digital transformation.

Saudi Arabia Total ICT Revenue Opportunity, by ICT services ($Billion) 2022-2027

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The Saudi Arabia enterprise ICT country intelligence report offers ICT revenue market indicators across the following IT services solution areas:

• Cloud computing services
• Communications and collaboration services
• Consulting & integration services
• Business process outsourcing services
• Application development and management services
• Networking services
• Internet of Things (IoT) services
• Client computing services
• Datacenter and hosting services
• Security services
• Artificial intelligence (AI) services
• Storage services
• Mobility services
• Servers services
• Edge computing services

Saudi Arabia Enterprise ICT Technology Revenue Opportunity and Spending Priorities – Key Solution Areas

Cloud computing can be regarded as the most attractive market in Saudi Arabia driven by the government’s ongoing commitment to large-scale cloud adoption. The revenue opportunity for cloud computing in Saudi Arabia was pegged at over $3 billion in 2022 and is estimated to grow at a CAGR of more than 17% between 2022-2027. The country’s rapid adoption of cloud-based technologies is supporting its digital transformation journey.

Saudi Arabia Total ICT Revenue Opportunity, by Solution Areas ($Billion) 2022-2027

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Saudi Arabia Enterprise Cloud Computing Investment Priority – Now vs Next Two Years

Enterprises are increasingly utilizing the cloud to transform their business operations and processes, making them more efficient. This was validated by GlobalData’s survey, where over 79% confirmed that their budget allocation in cloud services increased in 2023 vs. 2022. More than 65% claimed that their enterprises have already invested in the cloud, while over 61% indicated their enterprises would invest in the cloud in the next two years.

Cloud Computing Technology Investment Priority – Current vs Next Two Years

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Saudi Arabia Enterprise ICT Technology Revenue Opportunity – Key Verticals

The energy sector is the largest independent end-use vertical segment for the ICT market in Saudi Arabia in terms of revenue contribution, and it will remain so over the forecast period. ICT revenue from the energy sector reached over $4 billion in 2022 and is set to grow at a CAGR of more than 13% through 2027. The energy sector has been an early adopter of digital technologies. Power utilities are increasingly using emerging technologies to facilitate grid management and operation.

Saudi Arabia Total ICT Revenue Opportunity, by Verticals ($Billion) 2022-2027

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Saudi Arabia Enterprise ICT Revenue Opportunity by Enterprise Size Band

Large and very large enterprises together accounted for a major portion of Saudi Arabia’s ICT revenue in 2022. This can be mainly attributed to increasing investments in emerging technology areas, including advanced robotics, AI, data analytics, and cloud computing by large enterprises owing to their strong financial status.

Scope

The country intelligence report provides an in-depth analysis of the following –

• The macroeconomic and regulatory context and government initiatives in Saudi Arabia.
• Enterprise ICT market outlook: analysis as well as historical figures and forecasts of revenue opportunities from ICT segments, ICT solution areas, end-use verticals, and enterprise size bands.
• Enterprise ICT Budget Allocations – 2022 vs 2023: Overview of survey findings regarding changes in the overall enterprise ICT budget allocations in 2023 compared to the previous year and across ICT segments, ICT solution areas, and existing vs new IT projects.
• Enterprise ICT growth drivers, market trends and challenges
• IT hardware segment revenue and budget allocations outlook: analysis as well as historical figures and forecasts of revenue opportunities from ICT hardware solution areas and budget allocations by ICT hardware categories.
• IT software segment revenue and budget allocations outlook: analysis as well as historical figures and forecasts of revenue opportunities from ICT software solution areas and budget allocations by ICT software categories.
• IT hardware segment revenue and budget allocations outlook: analysis as well as historical figures and forecasts of revenue opportunities from ICT services solution areas and budget allocations by ICT services categories.
• Enterprise Technology Priorities: Overview of survey findings on enterprise investment priority for key solution areas in current vs next two years.
• Company landscape: analysis of the market position of leading ICT providers in the Saudi Arabia market.
• Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
• The survey was conducted in H1 2023 via an online methodology, with respondents all having ICT decision-maker responsibility (typically CIOs and IT Managers). GlobalData plans to repeat the survey in H1 2024, to monitor ICT budget changes on an ongoing basis.

Reasons to Buy

• This Country Intelligence Report is based on GlobalData’s IT Customer Insight Survey carried out annually covering key ICT decision makers from enterprises across various industry verticals in Saudi Arabia and GlobalData’s Market Opportunity Forecasts to 2027, to offer a thorough, forward-looking analysis of Saudi Arabia’s enterprise ICT investment priorities and ICT revenue opportunity market.
• Accompanying GlobalData’s IT Customer Insight Survey and Market Opportunity Forecasts to 2027, the report examines the assumptions and drivers behind ongoing and upcoming trends in Saudi Arabia’s enterprise ICT market.
• The report offers a thorough analysis of enterprise ICT investment trends and how it has changed this year compared to the previous year.
• The report also presents an analysis of enterprise ICT budget allocations by various spending areas, business functions, and product/service categories and how they have changed this year compared to previous years.
• The report also presents an analysis of enterprise ICT revenue opportunities by various solution areas, enterprise size bands, end-use verticals, and segments over the forecast period 2022-2027.
• With more than 50 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
• The report provides insights in a concise format to help executives build proactive and profitable growth strategies.
• The report provides an easily digestible market assessment for decision-makers built around research gathered from the local IT decision-makers, which enables executives to quickly get up to speed with the current and emerging trends in enterprise ICT investment priorities.