Press Release

A USD2.6 Billion Saudi Arabia Cloud Services Market to Reach USD7 Billion Mark by 2030

The Saudi Arabia Cloud Services Market size was valued at around USD 2.6 billion in 2024 and is projected to reach USD 7 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 18% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The main reason behind this growth is the internet penetration due to which the cloud services are gaining popularity. Around 99% of the population has access to the internet due to which the demand for cloud services increases not only for industries but also for people to store their photos, videos, online payment details, and other crucial data.

Moreover, a lot of companies are establishing their headquarters in Saudi Arabia. There is around a 477% increase in the incoming international companies in the first half of 2024 as compared to the same period in 2023. This is due to the benefits provided by the Saudi government to meet Vision 2030's diversification goals. These companies are mainly IT firms that need cloud services for various purposes such as storing data, running large programming codes, app development, and so on. Furthermore, the government is also creating a growing environment for cloud service providers by promoting their use and making special economic zones in which they can get tax benefits and incentives. Therefore, due to the increasing internet penetration and governmental support, the number of cloud service providers and users has increased in historical years.

Furthermore, there is a unique trend in already established cloud service companies. The companies that were established in the 1990s and 2000s are mainly local companies but are mostly categorized in the Class-A segment. On the other hand, the recently established companies from 2017 to 2020 are mainly international players but most of them are categorized in the Class-C category by the government. This shows the tough market competition with the presence of both local as well as international players, further states the research report, “Saudi Arabia Cloud Services Market Analysis, 2025.”

Segmentation Analysis

Infrastructure-as-a-Service (IaaS) Holds the Largest Market Share

Based on the type of cloud service, the market is further bifurcated into Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). Here, IaaS is the most adopted service in Saudi Arabia with more than 50% market share. This is due to its advantage of providing cost-efficient computing operations including servers, storage, networking, CPU, GPU, and so on. Companies have to pay for the used computing power only and it also saves the cost of setting up physical hardware devices. Therefore, with the emergence of new startups, businesses, and sectors like IT, healthcare, finance, etc., the demand for cloud services, mainly IaaS also increases.

Moreover, the upcoming smart cities such as; NEOM, Red Sea Project, etc., and digitalization projects of various public sectors like; healthcare, finance, etc., further increase the demand for infrastructure cloud services including storing informational records, managing transactional data, sharing data across departments, etc., as all these operations help them to improve their operations and enhance their services.

Central Region Leads the Saudi Arabia Cloud Service Industry

Regionally, around 43% market share is captured by the central region with Riyadh as the main province. This is due to the presence of a high number of companies that use cloud services in this region. These companies require cloud services in their operations such as; storing & transferring data, running programming codes, training large machine learning models, deployment of apps & software, and much more.

Moreover, Riyadh is home to most of the government organizations. As per the Saudi Vision 2030, these offices are focusing on digitalization by adopting cloud services for maintaining data backup, sharing data across various departments, and many other operations. Therefore, the high use of cloud services by both private and public sectors is responsible for this region’s dominance.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including Amazon Web Services (AWS), Microsoft Azure, Google Cloud, Oracle, Alibaba Cloud, STC Cloud, Sahara Net, Huawei Cloud, Zain Cloud, Kalaam Telecom, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & service adoption?
5. How has the competition been shaping up across the nation?
6. How have buying behavior, customer inclination, and expectations from services been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?