Market Trends of saudi arabia data center Industry
Expansion of 5G coverage, increasing online purchases and increasing digital applications from the end-users drives the market growth
- The data traffic per smartphone is expected to witness a steep growth from 5.5 GB in 2023 to 18.7 GB in 2029, exhibiting a CAGR of 21.8%.
- There has been an increase in mobile data traffic since 2022, made possible by the expansion of 5G coverage. 5G services in Saudi Arabia expanded in Q4 2020, reaching seven additional cities and provinces. By 2021, 51 of Saudi Arabia's different provinces and cities had 5G connections. About 23% of the overall volume is made up of 5G hardware, including handsets. The acceleration of significant IoT deployments is expected to be swift in the coming years, including use cases like wearables for e-health, inventory trackers for logistics, monitoring of pollution, smart meters, and surveillance and tracking tools for smart manufacturing. About 12.9 million people made online purchases in 2018, up from 11.6 million in 2017. By 2022, online shoppers were expected to grow significantly and reach 19.3 million. The volume of mobile data traffic in the country is increasing as more people use the internet.
- The average amount of data used increased by 33% by 2020. In Saudi Arabia, YouTube used the most bandwidth, making up an estimated 22.5% of all daily data usage, followed by the PlayStation Network (7.8%), Snapchat (7.6%), and Netflix (8.1%).
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With the expansion of digital initiatives and e-commerce activities, and improvements in 5G connections, smartphone sales are anticipated to rise in Saudi Arabia
- In 2022, smartphone penetration increased to more than 92%. In the coming years, the number of smartphone users in the Kingdom may continue to grow steadily, with an anticipated 97.1% smartphone penetration in 2025 and 36.17 million customers. Saudi Arabia is the GCC's next frontier for businesses trying to reach a new and mobile-centric consumer base.
- The country's total number of smartphone users is expected to reach 33.6 million in 2023, witness a CAGR of 1.8% during the forecast period, and reach 37 million by 2029.
- Smartphone usage has surged in the Kingdom. In 2022, the smartphone segment generated USD 2.40 billion in revenue. In 2023, the smartphone segment is anticipated to rise in volume by 1.9%. In 2022, there were 58.1 5G phones. With rising wages and employment opportunities, expansion of digital initiatives and e-commerce activities, and improvements in 5G connections, smartphone sales are anticipated to rise in Saudi Arabia, thus boosting the Kingdom's user base. Saudi Arabia's GDP expanded by 8.8% in 2022 compared to the same period the previous year. About 93% of Saudi Arabian smartphone users browse advertisements on their phones, while 91% watch videos on their devices. A huge amount of data is released daily in the Kingdom, which may boost the Saudi Arabian data center market during the forecast period. The rising purchasing power may boost smartphone sales further, thus increasing the number of smartphone users.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The increasing investments for the expansion of 5G network by Operators and quick adoption of 4G services drives the growth of the market
- Growing demand for the bandwidth, FTTH penetration, and Government initivatives to develop fiber infrastructre drives the growth of the market
- Transition to Fiber and governments initiatives to roll out fiber optic cables nationwide boost the market demand
