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The Saudi Arabia - IT Market size is estimated to grow at a CAGR of 7.48% between 2022 and 2027. The market size is forecast to increase by USD 5.44 billion. The growth of the market depends on several factors, including the launch of a national transformation program, the widespread use of IT in mega projects like NEOM, booming e-commerce sector.
This Saudi Arabia IT Market report extensively covers market segmentation by component (hardware, services, and software), and end-user (government, telecommunication, BFSI, oil and gas, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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The booming e-commerce sector is driving growth in the Saudi Arabian IT market. The government launched a development program in 2016 called the NTP, which is part of the Vision 2030 program. The plan sets out strategies for the diversification of the economy and the creation of new employment opportunities. The use of IT is rapidly growing in Saudi Arabia as the government intends to enable all sectors of the economy digitally, including manufacturing, government, healthcare, and BFSI, under the NTP.
Moreover, the execution of NTP will advance digital transformation (DX) in all sectors of the economy. It underlines DX initiatives, such as improving the reach and quality of broadband connectivity in Saudi Arabia, modernizing the business environment and economy, integrating government data into the Saudi e-Portal gateway, and improving payment systems, which will drive the growth of the market in focus during the forecast period.
The increasing adoption of e-governance is a key trend in the Saudi Arabia - IT market. Saudi Arabia was ranked 9th in the United Nations (UN) E-Government Development Index (EGDI) in 2020. The economy of Saudi Arabia can be substantially improved through the Vision 2030 program. The government has increased the possibility of online services over the last decade.
Moreover, Vision 2030 also supports the increased use of online applications in government sector agencies, such as cloud applications, data-sharing platforms, and HR management systems. In Saudi Arabia, online services in the government are planned to be strengthened. The country is also expected to see the increased use of cloud computing in other areas as well, which will fuel the growth of the market in focus during the forecast period.
The absence of legal frameworks hindering the growth of the IT market is a major challenge faced by the Saudi Arabia - IT market. In Saudi Arabia, the legal environment is quite different from that in other parts of the world. Countries such as the US, the UK, other European countries, Asia-Pacific, and other Middle Eastern countries such as the UAE focus on drafting policies that encourage foreign investments and ensure that business conditions are conducive to the growth of enterprises.
However, law and order in Saudi Arabia are governed by Saudi Arabian law or Shariah law. Shariah law does not conform to globally accepted standards in its key principles. Unlike other Middle Eastern countries, such as the UAE, Saudi Arabia does not have a predominant civil code or commercial legal framework. Thus, the absence of legal frameworks will hinder the growth of the IT industry, thus impacting the market in focus negatively during the forecast period.
The market share growth by the hardware segment will be significant during the forecast period. Organizations need to store and process data associated with their business in an effective manner, so as to simplify their processes, which can be achieved by building a robust IT hardware infrastructure consisting of servers, storage devices, network equipment, and devices, such as laptops, tablets, mobiles, and wearables.
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The hardware segment showed a gradual increase in the market share of USD 5.64 billion in 2017 and continued to grow by 2021. The economy of Saudi Arabia is emerging, and the country has recently begun to adopt modern technologies. The country is in the process of developing its IT infrastructure, which will require investments in network, storage, and server hardware by companies operating in various sectors.
The use of IT in the government sector is primarily in areas such as defense, the development of public utilities, government-controlled energy companies, public healthcare, municipal and rural affairs, and housing development. The Vision 2030 Program of the Saudi Arabian government envisages significant IT investments through the government sector and the National Transformation Program (NTP) initiative. In the government sector, IT will primarily be used to construct smart cities. The government's objective is to build value networks across public sector organizations, telecommunications companies, and information and communication technology providers. In order to build smart cities and to encourage the adoption of ICT by small and medium-sized enterprises (SMEs), all entities that are part of these value networks will work together, and execute e-health, e-learning, and other transformational projects, which will drive the growth of the Saudi Arabia - IT Market during the forecast period.
The Saudi Arabia IT Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Saudi Arabia IT Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc- The company offers IT products and services, such as computer services, cloud services, data services, software engineering, infrastructure engineering, platform services, technology innovation, living systems, security, automation, and application management services.
Amazon.com Inc.- The company offers IT products and services through Amazon Web Service such as cloud-based products which includes computing, storage, databases, analytics, networking, mobile, developer tools, management tools, IoT, security, and enterprise applications.
Alphabet Inc.- The company offers IT products and services, such as application services, software services, computer services, cloud services, infrastructure services, Google Cloud Platform, Google Workspace, data analytics platforms, collaboration tools, ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Saudi Arabia IT Market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Saudi Arabia IT Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.48% |
Market growth 2023-2027 |
USD 5.44 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.93 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Al Moammar Information Systems Co., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Cognizant Technology Solutions Corp., Comprehensive Technology Co., DataFlow Group, Easy World Automation LLC, Ejada Systems Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., IQVIA Holdings Inc., Microsoft Corp., NEC Corp., Oracle Corp., SAP SE, and SAS Institute Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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