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Saudi Arabia Data Center Networking Market Size (2024 - 2029)

The Saudi Arabia Data Center Networking Market is projected to experience significant growth over the forecast period, driven by the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the anticipated growth in market size, alongside substantial developments in IT load capacity, raised floor space, and the number of racks. Additionally, the construction of submarine cable systems is set to enhance connectivity, further supporting the market's growth trajectory.

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Market Size of Saudi Arabia Data Center Networking Industry

Saudi Arabia Data Center Networking Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.34 Billion
Market Size (2029) USD 0.71 Billion
CAGR (2024 - 2029) 15.50 %
Market Concentration Medium

Major Players

Saudi Arabia Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Data Center Networking Market Analysis

The Saudi Arabia Data Center Networking Market size is estimated at USD 0.34 billion in 2024, and is expected to reach USD 0.71 billion by 2029, growing at a CAGR of 15.5% during the forecast period (2024-2029).

  • The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Saudi Arabia data center rack market is expected to reach 850 MW by 2029. Saudi Arabia's electricity consumption increased by 4.23% year-on-year to 301,600 gigawatt hours (GWh) in 2021, compared to 289,330 GWh in 2020.
  • 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 1,70,000 units by 2029. Riyadh is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are more than 10 submarine cable systems connecting Saudi Arabia, and many are under construction.

Saudi Arabia Data Center Networking Industry Segmentation

Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of applications and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.

The Saudi Arabia data center networking market is segmented by product (ethernet switches, routers, storage area network (SAN), application delivery controllers (ADC), and other networking equipment), by services (installation & integration, training & consulting, and support & maintenance), and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end users).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component
By Product
Ethernet Switches
Router
Storage Area Network (SAN)
Application Delivery Controller (ADC)
Other Networking Equipment
By Services
Installation & Integration
Training & Consulting
Support & Maintenance
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Saudi Arabia Data Center Networking Market Size Summary

The Saudi Arabia Data Center Networking Market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is expected to expand considerably over the forecast period, supported by the country's ambitious Vision 2030 initiative, which aims to enhance digital infrastructure across various sectors such as e-commerce, digital health, and smart cities. The development of data centers is further bolstered by the expansion of 5G networks, which have increased mobile data traffic and necessitated advanced networking solutions like Gigabit Ethernet switches. These technologies are integral to supporting the country's digital transformation goals and improving connectivity and data management capabilities.

The market landscape is characterized by moderate competitiveness, with key players like VMware Inc., Eaton Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd., and Schneider Electric actively engaging in partnerships and acquisitions to strengthen their market position. Innovations in networking hardware, such as Juniper Networks' AI-driven solutions and NVIDIA's advanced networking platforms, are enhancing the performance and efficiency of data center operations. These developments are crucial as Saudi Arabia continues to build state-of-the-art digital infrastructure, including smart cities and enhanced telecom services, aiming to rank among the top global cities by 2030. The strategic focus on cloud services and regulatory frameworks is expected to further facilitate the growth of data centers, aligning with the country's broader economic and technological aspirations.

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Saudi Arabia Data Center Networking Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Trend of High-Performance Computing across Europe

      2. 1.2.2 Growing Investments in IT& Telecom Sector

    3. 1.3 Market Restraints

      1. 1.3.1 Regulatory constraints

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Component

      1. 2.1.1 By Product

        1. 2.1.1.1 Ethernet Switches

        2. 2.1.1.2 Router

        3. 2.1.1.3 Storage Area Network (SAN)

        4. 2.1.1.4 Application Delivery Controller (ADC)

        5. 2.1.1.5 Other Networking Equipment

      2. 2.1.2 By Services

        1. 2.1.2.1 Installation & Integration

        2. 2.1.2.2 Training & Consulting

        3. 2.1.2.3 Support & Maintenance

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Saudi Arabia Data Center Networking Market Size FAQs

The Saudi Arabia Data Center Networking Market size is expected to reach USD 0.34 billion in 2024 and grow at a CAGR of 15.5% to reach USD 0.71 billion by 2029.

In 2024, the Saudi Arabia Data Center Networking Market size is expected to reach USD 0.34 billion.

Saudi Arabia Data Center Networking Market Report Snapshots

Saudi Arabia Data Center Networking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)