Saudi Arabia Digital Transformation Market is anticipated to grow at
a rapid pace during the forecast period, 2024-2028, owing to rising demands for capital investment and
Internet of Things (IoT), increasing adoption of digital business strategies,
and quick and easy digital transformation.
Saudi
Arabia has announced more than USD 9 billion investments in its technology
sector, as part of efforts to bolster digital transformation in preparation for
the future economy.
Digital
transformation refers to the process of employing digital technologies to
develop new business practices, cultural norms, and consumer experiences, or to
adapt current ones, to meet shifting business and market demands. Digital
transformation refers to this reinvention of company in the digital age. It
goes beyond conventional job functions like sales, marketing, and customer
service. Instead, how you think about and interact with customers is where
digital transformation starts and ends.
With digital technology on our side, we have the ability to rethink how
we conduct business and interact with our customers as we go from paper to
spreadsheets to smart applications for managing our business.
The
market for Digital Transformation in Saudi Arabia is significantly
influenced by the development of Fourth Industrial Revolution (4IR). Solutions will
accelerate the kingdom's transition to an innovation-driven, knowledge-based
economy as part of the Saudi government's Vision 2030 initiative, which aims to
diversify the economy and increase the private sector's contribution to the
national GDP. Moreover, the
digital industry in Saudi Arabia is one of the largest in the region, with a
market value of about USD40 billion and 318,000 employees. Additionally, it is
one of the greatest government expenditures on technology in the world with
additional estimated investments of USD24.7 billion scheduled for diverse
technologies by 2025. Saudi Arabia’s internet penetration rate stood at 98 per cent, from a population
of 36 million, at the start of 2022. Additionally,
the kingdom arrived in second place globally among G20 nations in the 2021
Digital Competitiveness Report, second on the Global Cybersecurity Index 2022,
third globally for its digital government transformation, and first in the Arab
world and 22nd according to the most recent Global Artificial Intelligence
Index.
Since implementing its Cloud First Policy in 2019, Saudi
Arabia has experienced a 16% growth rate in digital transformation, according
to the International Trade Association. This policy was introduced to hasten
the public and private sector usage of cloud. Saudi Arabia is a leader in the
MENA region in terms of ICT readiness and cloud computing utilization.
Network
Investments are Setting the Standard for Digital Transformation
Network
investments are a critical component of the digital transformation. Networks
serve as the building blocks for all digital services and applications since
they are the backbone of digitalization. The development of next-generation
networks like 5G and fibre-optic networks is essential to address the growing
demand for faster and more dependable internet connectivity. These investments
will improve user experiences and make it possible to adopt cutting-edge
technologies like edge computing and the Internet of Things. The government of
Saudi Arabia announced a USD6.4 billion investment in its IT sector last year
as part of efforts to diversify the country's economy. Moreover, Saudi Arabia
is making investments in cutting-edge technologies like 5G, IoT, network
slicing, and cloud-native solutions to stay at the forefront of technical
development and to set the standard for digital transformation. In the upcoming
years, we'll concentrate on extending network reach, improving digital service
usability, and giving everyone an equal chance to profit from
digitization.
Digital
and 5G Technologies are at The Forefront Of Industry Development
The
Kingdom hopes to continue its leadership in the 5G industry and achieve the
objectives outlined in the Saudi Vision 2030 project through new partnerships
and investments. By investing in research, development, and innovation, the
vision hopes to boost the GDP by USD16 billion by the year 2030. The Ministry
of Communications and Information Technology has implemented considerable
reforms in the telecoms industry as part of its preparation for the widespread
adoption and use of 5G.
The
digitalization of industries, a megatrend that is already beginning to take
shape, is one of the main tenets of Vision 2030. The nation is utilizing
cutting-edge technology made possible by 5G, like artificial intelligence, to
accomplish this goal. Saudi Arabia is creating ecosystems that are hospitable
to AI and supporting the installation of data analytics tools and smart city
projects, such as the NEOM project, in an effort to encourage the adoption of
AI. It is predicted that by 2030, AI will contribute USD135.2 billion, or
12.4%, to the Kingdom's GDP. Saudi
Arabia is laying the groundwork for digital transformation in important
industries including manufacturing, health, transportation, logistics, and
energy by investing in cutting-edge network infrastructure like 5G Core
technology and cloud solutions. The GCC region is likely to adopt 5G at a quick
rate, with subscribers rising from 15 million to 71 million by 2028 at an
average annual rate of 30%.
Rising
Collaboration
Saudi
Arabia is embracing technology and the digital economy through smart funding
and working to create flexible regulations that promote new industries. With 36
million people and a 98% internet penetration rate, the nation is ready for
change. With plans to build smart cities, better digital healthcare, improve
infrastructure, adopt autonomous vehicles, blockchain technology, and a growing
e-commerce business expected to be worth more than USD13 billion by 2025, the
Digital Government Authority is leading this shift. The government has started
a USD1.2 billion plan to improve 100,000 students’ digital abilities by 2030,
with a focus on programming and cyber-security.
Rapid
Adoption of Digital Transformation by Enterprises
Technology
is transforming entire industries and redefining business models, with an
impact on both huge enterprises and SMEs. KSA ranks ninth among the G20
countries in terms of software spending as a proportion of GDP, which can be
used as a proxy to gauge an enterprise's digital transformation. As the
entrance in the market is competitive across the country, it is difficult for
the businesses to embrace the digital transformation shift, as the workforce is
low in capacity and quality.
Rising
Number Of Startups
Digital
start-ups are agents of change in the digital economy because they create and
market cutting-edge technologically enabled solutions. The ecosystem for ICT
start-ups in KSA is growing, with an increase in new start-ups year over year
and a growing network of incubators and investors to help both private and
public sectors. The lack of investor experience working with entrepreneurs, the
complexity of the administrative procedures, and the difficulty in hiring top
talent are all factors. In terms of "most start-up friendly
countries," KSA is ranked 13th among its G20 counterparts, although no
"unicorns" has yet been created there.
Instead
of generating and developing their own IP, KSA start-ups are mostly focused on
replicating successful business models from other countries. All these
initiatives are driving the Saudi Arabia Digital Transformation Market.
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Market Segmentation
The Saudi Arabia Digital Transformation
Market is to be segmented based on into technology, end-user, deployment, and
enterprise size. Based on technology, the market is further bifurcated into data
analytics, cloud computing, AI, IoT, and blockchain. Based on end-user, the market
is segmented into healthcare, government, BFSI, retail, manufacturing, telecom &
IT, and others. Based on deployment, the market is divided into
cloud and on-premises. Based on enterprise size, the market is segmented into large
enterprise, small enterprise and medium enterprise.
Market Players
Major
market players in the Saudi Arabia Digital Transformation
Market are Exponential
Digital Solutions, Advanced Electronics Company, Al Moammar Information Systems
Co., Arabic Computer Systems Ltd., Microsoft Arabia, EJADA Systems Company
Limited, Jeraisy Group, STC Solutions Inc, Saudi Business Machines Ltd., Saudi
Information Technology Co., and Wipro Limited.
Recent Development
- According to Abdullah
Alswaha, Saudi Arabia's Minister of Communications and Information Technology,
the investments are being driven by a USD2.1 billion commit from Microsoft,
which will build a super-scaler cloud in Saudi Arabia. He made the announcement
at the Leap 2023 conference in Riyadh.
- Saudi Arabia's cloud
infrastructure will be improved by USD 400 million from Huawei of China and
USD1.5 billion from Oracle to increase the country's cloud computing
capability.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 –
2022
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Million, and CAGR for 2018-2022 and 2024-2028
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Report coverage
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Revenue
forecast, company share, growth factors, and trends
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Segments covered
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Technology
End-User
Deployment
Enterprise Size
Region
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Regional scope
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Northern
& Central Region, Western Region, Eastern Region, Southern Region
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Key companies profiled
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Exponential Digital Solutions, Advanced Electronics Company,
Al Moammar Information Systems Co., Arabic Computer Systems Ltd., Microsoft
Arabia, EJADA Systems Company Limited, Jeraisy Group, STC Solutions Inc,
Saudi Business Machines Ltd., Saudi Information Technology Co., Wipro
Limited.
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Customization scope
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10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
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Pricing and purchase options
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Avail customized purchase options to meet your exact research
needs. Explore purchase options
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Delivery Format
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PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/Word format on special request)
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Report Scope:
In this report, the Saudi Arabia Digital Transformation Market has been segmented into following categories, in
addition to the industry trends which have also been detailed below:
·
Saudi Arabia Digital Transformation Market, By Technology:
o
Data Analytics
o
Cloud Computing
o
AI
o
IoT
o
Blockchain
·
Saudi Arabia Digital Transformation Market, By End-User:
o
Healthcare
o
Government
o
BFSI
o
Retail
o
Manufacturing
o
Telecom & IT
o
Others
·
Saudi Arabia Digital Transformation Market, By Development:
o
Cloud
o
On-premises
·
Saudi Arabia Digital Transformation Market, By Enterprise Size:
o
Large Enterprise
o
Small Enterprise
o
Medium Enterprise
·
Saudi Arabia Digital Transformation Market, By Region:
o
Northern & Central Region
o
Western Region
o Eastern Region
o Southern Region
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Saudi Arabia Digital Transformation Market.
Available Customizations:
With the given market data, TechSci
Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
Saudi Arabia Digital Transformation Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]