Saudi Arabia ICT Market Report and Forecast 2024-2032

Saudi Arabia ICT Market Size

The Saudi Arabia ICT market reached approximately USD 44.69 billion in 2023. The market is projected to grow at a CAGR of 9.1% between 2024 and 2032, reaching a value of around USD 97.87 billion by 2032.

Saudi Arabia ICT Market Outlook

• As of March 2024, with a valuation of more than $40.9 billion and accounting for 4.1% of the GDP, the market stands as the largest and most rapidly expanding in the Middle East and North Africa region.

• In 2023, government spending on ICT in Saudi Arabia increased by 20% compared to the previous year, amounting to SR 41.87 billion ($11.16 billion).

• As per the Saudi Arabian Ministry of Commerce, between October to December 2023, issuance of cloud computing permits surged by 40% y-o-y, reaching 1,759.

Saudi Arabia ICT Market Growth

The telecommunications sector is the backbone of the Saudi Arabian economy, with a predicted CAGR of 3.92% until 2029. The Kingdom has the biggest telecom market in the Middle East and is expected to continue growing steadily. The Saudi Arabian government's strategic push and the increased demand for fast internet are driving this growth.  Another notable trend in the market is the swift adoption of 5G technology, with multiple market participants investing in its expansion across the region.  According to GSMA Intelligence data, 78% of Saudi Arabia's population has access to 5G coverage as of April 2022, up from 43% two years prior, leading to the expansion of the market in the country.

Various ambitious programmes introduced by the government of Saudi Arabia are also supporting the market. For instance, 'Vision 2030' is reshaping the telecom sector in Saudi Arabia by aiming to reduce the country's dependence on oil and diversify its economy. This initiative recognises the crucial role of the telecom sector in enhancing quality of life and driving economic progress. It seeks to enhance competition, elevate service quality, and amplify the industry's GDP impact. Furthermore, the programme envisions leveraging the telecom sector as a catalyst for the digital evolution of various sectors, such as healthcare, education, and tourism, among others.

Saudi Arabia ICT Industry Segmentation

“Saudi Arabia ICT Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Hardware
  • Network Switches 
  • Routers and WLAN 
  • Servers and Storage 
  • Others 
• Software

• IT and Infrastructure Services

• Telecommunication Services

Market Breakup by Enterprise Size

• Small and Medium Enterprises

• Large Enterprises

Market Breakup by Industry Vertical

• BFSI

• IT and Telecom

• Government

• Retail and E-Commerce

• Manufacturing

• Energy and Utilities

• Others

Market Breakup by Region

• Makkah

• Riyadh

• Madinah

• Qassim

• Eastern Province

Saudi Arabia ICT Market Share

Based on industry vertical, the market is divided into BFSI, IT and telecom, government, retail and e-commerce, manufacturing, and energy and utilities, among others. Over the forecast period of 2024-2032, the BFSI sector is assessed to grow at a CAGR of 9.4%. Information and Communication Technology (ICT) is crucial in the advancement and development of banking and financial operations. It is not only necessary for meeting customer needs but also for gaining a competitive edge. ICT enables bankers to offer a variety of services to customers in an efficient, cost-effective, convenient, compliant, and organised manner.

Leading Companies in the Saudi Arabia ICT Market

Major players are investing heavily in technological upgrades to gain a competitive edge in the market.

• IBM Corp.

• Microsoft Corp.

• Cisco Systems Inc.

• Amazon.com Inc. (Amazon Web Services, Inc.)

• Palo Alto Networks Inc.

• Accenture Plc

• Dell Inc.

• HP Inc.

• Trend Micro Inc.

• Saudi Telecom Company SJSC

• Others

Key Highlights of the Report

Saudi Arabia ICT Market Report Snapshots

Saudi Arabia ICT Market Size

Saudi Arabia ICT Market Growth

Saudi Arabia ICT Market Share

Saudi Arabia ICT Companies