Kingdom of Saudi Arabia Infrastructure as a Service Market is expected to reach a revenue of USD 26.0 Bn by 2034, at 23.2% CAGR: Dimension Market Research

Riyadh, Feb. 04, 2025 (GLOBE NEWSWIRE) — Overview:

The Kingdom of Saudi Arabia Infrastructure as a Service Market size is expected to reach USD 4.0 billion by 2025 and is further anticipated to reach USD 26.0 billion by 2034 according to Dimension Market Research. The market is anticipated to register a CAGR of 23.2% from 2025 to 2034.

Infrastructure as a Service (IaaS) is a cloud computing service model that provides virtualized computing resources over the Internet. These resources include servers, storage, networking, and data center space, allowing businesses to minimize the requirements for on-premises IT infrastructure. IaaS provides scalability, flexibility, and cost efficiency, making it a preferred choice for enterprises looking to innovate and minimize operational costs.

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 Important Insights

• The Kingdom of Saudi Arabia Infrastructure as a Services Market is expected to grow by USD 21.2 billion by 2034 from 2026 with a CAGR of 23.2%.
• The Managed Hosting Services segment is expected to get the majority share of the Kingdom of Saudi Arabia Infrastructure as a Service (IaaS) Market in 2025.
• The large enterprises segment in terms of organization size is set to be leading the market in 2025.
• The Public segment is expected to get the biggest revenue share in 2025 in the Kingdom of Saudi Arabia Infrastructure as a Services Market.

Kingdom of Saudi Arabia Infrastructure as a Service Market: Trends

• Increased Hybrid Cloud Adoption: Organizations are using hybrid cloud models for better flexibility, integrating public cloud scalability with private cloud security.
• Localization of Cloud Services: Global providers like AWS and Microsoft Azure are establishing local data centers to meet data residency and compliance requirements.
• Focus on Industry-Specific Solutions: IaaS providers are offering customized cloud services to sectors like healthcare, finance, and government, addressing distinctive regulatory and operational needs.
• Rising Demand for Edge Computing: Growth in IoT and real-time applications is driving the adoption of edge computing to reduce latency and improve performance.

Kingdom of Saudi Arabia Infrastructure as a Service Market: Competitive Landscape

Saudi Arabia’s IaaS market is dynamic, with local providers expanding to meet the rise in demand for secure, scalable, and affordable cloud infrastructure. Meanwhile, global giants are enhancing their presence, providing advanced technologies and expertise. Competition is intensifying as companies prioritize customized solutions, better security, and regulatory compliance, driving rapid growth as businesses majorly adopt cloud technologies.

Some of the major players in the market include AWS, Google, IBM, Oracle, Saudi Telecom Company, and more.

Some of the prominent market players:

• AWS
• Google
• Oracle
• IBM
• Alibaba
• VMWare
• Red Hat
• Saudi Telecom Company (STC)
• Mobily
• Advanced Electronic Company (AEC)
• Zain KSA
• Other Key Players

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Kingdom of Saudi Arabia Infrastructure as a Service Market Scope

Segment Analysis:

Public cloud deployment will drive the growth of Saudi Arabia’s IaaS market and will lead the market share in 2025 by offering scalable, flexible, and affordable solutions, mainly benefiting SMBs through a pay-as-you-go model. Providers like AWS, Microsoft Azure, and Google Cloud are expanding locally, driving digital transformation. Further, hybrid clouds will also see major growth, combining public cloud scalability and affordability with private cloud security for sensitive data, which makes hybrid solutions ideal for industries with complex infrastructure and regulatory needs, further supporting the market’s expansion.

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Kingdom of Saudi Arabia Infrastructure as a Service Market Segmentation

By Solution

• Managed Hosting Services
• Storage as a Service (STaaS)
  • Storage Area Network (SAN)
  • Network Attached Storage (NAS)
• Disaster Recovery as a Service (DRaaS)
• Colocation
• Network as a Service (NaaS)
• Content Delivery Services
• High-Performance Computing as a Service (HPCaaS)

By Deployment

By Organization Size

• Small & Medium-sized Enterprises (SMEs)
• Large Enterprises

By Industry Vertical

• BFSI
• IT and Telecom
• Government and Public Sector
• Retail and E-commerce
• Manufacturing
• Energy and Utilities
• Media and Entertainment
• Healthcare
• Others

Kingdom of Saudi Arabia Infrastructure as a Service Market: Driver

• Rising Cloud Adoption Across Industries: The rise in demand for scalable, affordable, and secure cloud solutions drives large adoption across sectors, like SMBs and large enterprises.
• Government Initiatives and Vision 2030: Supportive policies, digital transformation initiatives, and investments in ICT infrastructure drives the growth of the IaaS market.
• Expansion by Global Cloud Providers: Companies like AWS, Microsoft Azure, and Google Cloud are enhancing their presence, and launching advanced technologies and expertise.
• Hybrid Cloud Solutions: A growing fondness for hybrid deployments ensures scalability, cost-efficiency, and security compliance, catering to industries with complex regulatory needs.

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Kingdom of Saudi Arabia Infrastructure as a Service Market: Restraints

• Data Privacy and Security Concerns: Organizations remain cautious about transforming the cloud due to risks related to data breaches and compliance with strict data protection regulations.
• High Initial Costs for Private Infrastructure: While public clouds are affordable, private or hybrid cloud setups demand higher investments, limiting adoption for some businesses.
• Limited Cloud Expertise and Talent: A shortage of skilled professionals in cloud technologies poses challenges to the efficient installation and management of IaaS solutions.
• Regulatory and Localization Challenges: Adhering to local data residency laws and industry-specific regulations can be complex for both local and international cloud providers.

Kingdom of Saudi Arabia Infrastructure as a Service Market: Opportunities

• Growing Digital Transformation: The growth in adoption of cloud technologies across sectors, owing to Vision 2030, provides many opportunities for IaaS providers to support digital innovation.
• SMB Market Expansion: Small and medium-sized businesses looking for cost-effective, scalable cloud solutions offer a significant untapped market for IaaS providers.
• Localized Data Centers: Investments in local data centers by global players like AWS and Azure look into regulatory requirements and enhance service reliability, creating new growth avenues.
• Advanced Technologies Adoption: The need for AI, IoT, and big data analytics in cloud services opens opportunities for IaaS providers to offer specialized solutions.

Recent Developments in the Kingdom of Saudi Arabia Infrastructure as a Service Market

• September 2024: Mobiz announced to expand into Saudi Arabia, by opening its new branch in the Kingdom, which follows the company’s successful launch in Bahrain and highlights its commitment to enhancing its service offerings and accessibility across the Gulf Cooperation Council (GCC) region.
• September 2024: The Oracle Database@Azure infrastructure-as-a-service has integrations with key Microsoft data and security services. As integration between Fabric, Microsoft’s large data intelligence platform, and OCI GoldenGate, Oracle’s database replication and heterogeneous data integration service.
• July 2024: Sirius Digitech Limited signed an agreement to acquire Coredge.io Private Limited, a cutting-edge sovereign AI and cloud platform company.
• April 2024: Mastek unveiled that the company attained the multi-tower deal from Yanbu Cement Company (YCC) to optimize the efficiency of YCC’s production line. After executing numerous back office and Enterprise Resource Planning (ERP) transformation programs in the first phase, Mastek will kick off the second phase, automating YCC’s front office operations and simplifying the lead-to-cash cycle.

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