Saudi Arabia Data Center Storage Market Trends and Forecasts 2024-2029: Growing Digitalization and Emergence of Data-centric Applications, & Evolution of Hybrid Flash Arrays Driving Growth
The Saudi Arabia Data Center Storage Market size is estimated at USD 430.10 million in 2024, and is expected to reach USD 813.5 million by 2029, growing at a CAGR of 13.60% during the forecast period (2024-2029).
Saudi Arabia's communications and technology market is experiencing rapid growth, with SAR 93 billion (USD 24.7 billion) invested over the past six years to develop the country's digital infrastructure, according to industry experts. SaaS offers flexible, scalable, and cost-effective software solutions that can be quickly deployed and adapted to meet the evolving business requirements within the country, which is fueling demand in the market.
The Saudi Arabian data center storage market is moderately consolidated, with a competitive edge established in recent years. Key players include Dell Inc., Hewlett Packard Enterprise, and NetApp Inc. These companies, holding significant market shares, are focused on expanding their customer base across the region by leveraging strategic collaborations to increase their market share and profitability.
IT and Telecom to Hold a Significant Share
The rollout of 5G networks is expected to strengthen the nation's digital economy and increase demand for advanced data center storage infrastructure. The arrival of 5G is anticipated to drive major improvements in speed, low latency, and enhanced network capabilities, setting the stage for advanced real-time applications.
Saudi Arabia ranks as the fourth-fastest country in the world for 5G internet speeds, with an average of 264.7 Mbps, and the seventh-fastest overall for mobile internet speeds, averaging 109.48 Mbps in Q4 2020. The country also leads in average 5G download speeds, reaching up to 377.2 Mbps, while South Korea holds the second position. This growth in the sector can be attributed to rising demand for rack-optimized servers and data center storage solutions, which improve resilience, scalability, and performance for critical applications.
5G offers nearly seven times the throughput of 4G, with speeds of 10 Gbps compared to 1.45 Gbps. The demand for NVMe technology is also growing, particularly for SSD servers and storage appliances. This high-performance communication interface provides an efficient command set for PCIe-based SSDs, ensuring interoperability across diverse corporate and client systems, which is expected to drive market growth during the forecast period.
All-Flash Storage to Witness Significant Growth
All-flash arrays are revolutionizing data center storage, providing cloud-like consolidation of applications and enhanced agility. The increasing volume of data generated by enterprises and the widespread adoption of cloud technology are expected to drive the market's growth.
The rapid adoption of cloud-based technology is accelerating the country’s digital transformation while ensuring the protection of extensive data. Significant investments from cloud providers like Google and Oracle are boosting the data center industry. For example, Oracle has partnered with NEOM Tech & Digital Holding Co. to become the first tenant in the hyperscale data center at NEOM, aligned with Saudi Vision 2030. The center will host Oracle Cloud Infrastructure (OCI), providing a high-performance, resilient platform for cloud services.
Under Saudi Vision 2030, foreign investment is particularly encouraged in the technology sector. The implementation of a cloud-first strategy in 2019 has further driven the adoption of innovative technologies, such as AI in Industry 4.0. The Cloud Computing Regulatory Framework, established by the Communications and Information Technology Commission, aims to enhance cloud computing services in the country and promote regulatory transparency.
Transitioning to all-flash storage has brought notable improvements. Customer-facing applications have achieved a 70% reduction in response times, and storage-related capital and operational expenses have decreased by over 50%. Additionally, the downtime and disaster recovery risk (DRR) for SQL servers and private cloud workloads have been eliminated, and physical storage space requirements have been reduced from 40 to 7 rack units. These benefits of all-flash storage are expected to contribute significantly to market growth during the forecast period.
Key Highlights
Under Construction IT Load Capacity: The upcoming IT load capacity of the Saudi Arabian data center market is expected to reach 854.8 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 3.4 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach 171k units by 2029. Riyadh is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are around five submarine cable systems connecting Saudi Arabia, and many more are expected during the forecast period.
Key Topics Covered:
1 INTRODUCTION 1.1 Study Assumption and Market Definition 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS 4.1 Market Overview 4.2 Market Drivers 4.2.1 Growing Digitalization and Emergence of Data-centric Applications 4.2.2 Evolution of Hybrid Flash Arrays 4.3 Market Restraints 4.3.1 Compatibility and Optimum Storage Performance Issues 4.4 Value Chain/Supply Chain Analysis 4.5 Industry Attractiveness - Porter's Five Forces Analysis 4.6 Assessment of COVID-19 Impact
5 MARKET SEGMENTATION 5.1 By Storage Technology 5.1.1 Network Attached Storage (NAS) 5.1.2 Storage Area Network (SAN) 5.1.3 Direct Attached Storage (DAS) 5.1.4 Other Technologies 5.2 By Storage Type 5.2.1 Traditional Storage 5.2.2 All-Flash Storage 5.2.3 Hybrid Storage 5.3 By End User 5.3.1 IT & Telecommunication 5.3.2 BFSI 5.3.3 Government 5.3.4 Media & Entertainment 5.3.5 Other End Users
6 COMPETITIVE LANDSCAPE 6.1 Company Profiles 6.1.1 Dell Inc. 6.1.2 Hewlett Packard Enterprise 6.1.3 NetApp Inc. 6.1.4 Huawei Technologies Co. Ltd 6.1.5 Kingston Technology Company Inc. 6.1.6 Pure Storage Inc. 6.1.7 Nutanix Inc. 6.1.8 Lenovo Group Limited 6.1.9 IBM Corporation 6.1.10 SMART Modular Technologies Inc.
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