Saudi Arabia Data Center Storage Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 430.10 Million |
| Market Size (2029) | USD 813.5 Million |
| CAGR (2024 - 2029) | 13.60 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Data Center Storage Market Analysis
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 witnessing rapid growth, with SAR 93 billion (USD 24.7 billion) worth of investments already pumped in over the last six years to develop the country’s digital infrastructure (as per industry experts). SaaS provides flexible, scalable, and cost-effective software solutions that can be quickly deployed and aligned with evolving business requirements in the country. Such factors are driving the market’s demand.
- 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.
Saudi Arabia Data Center Storage Market Trends
IT and Telecom to Hold Significant Share
- The rollout of 5G networks is expected to strengthen the nation's digital economy and increase demand for high data center storage infrastructure. The arrival of 5G is expected to bring a major increase in speeds, low latencies, and more network capabilities, setting the stage for even more advanced and novel applications that are connected in real-time.
- Saudi Arabia maintained its ranking as the fourth-fastest country in the world in terms of 5G internet speeds, with an average of 264.7 Mbps. It was the seventh-fastest country overall for mobile internet speeds, averaging 109.48 Mbps in Q4 2020.
- The country topped the list for average 5G download speeds with up to 377.2 Mbps, while South Korea registered the second spot. The sector's expansion can be attributed to the rising demand for rack-optimized servers and data center storage, which are being used to improve data centers by offering resilience, scalability, and performance for crucial applications.
- 5G is close to seven times better in terms of throughput compared to 4G, at 10 Gbs compared to 1.45 Gbs. With NVMe or SSD over HDD, such enterprise-level technology allows significant I/O throughput. The demand for NVMe is increasing for SSD servers and storage appliances, which is expected to drive the market during the forecast period. This communication interface and driver provide a command set and feature set for PCIe-based SSDs with the objective of efficient performance and interoperability across a wide variety of corporate and client systems.
All-Flash Storage to Witness Significant Growth
- All-flash arrays are evidently revolutionizing data center storage, offering cloud-like application consolidation and enhanced agility. The growth in data generated by enterprises and the adoption of cloud technology are expected to drive the market studied.
- Rapid cloud-based technology adoption will help hasten the country's digital transition while protecting mountains of data. With enticing investments from cloud providers such as Google and Oracle, the data center business has started to pick up steam. For instance, Oracle will work with NEOM Tech & Digital Holding Co. as the first tenant in the hyperscale data center at NEOM to serve Saudi Vision 2030. The data center will house Oracle Cloud Infrastructure (OCI), which would offer a high-performing, resilient platform for cloud services.
- Under Saudi Vision 2030, foreign investment is encouraged, particularly in the technology sector. The implementation of the cloud-first strategy in 2019 also accelerated the uptake of innovative technologies such as AI for Industrial 4.0. The Cloud Computing Regulatory Framework, which was adopted by the Communications and Technology Information Commission, intends to improve cloud computing services in the country and promote regulatory openness.
- The lagging storage performance, slowed response times on key member-facing applications, and legacy storage became complex to manage and difficult to expand. After the deployment of all-flash arrays, customer-facing applications saw a 70% improvement in response times. Storage-related capital and operating costs were reduced by over 50%. Downtime and disaster recovery risk (DRR) for SQL servers and private cloud workloads were eliminated. Physical space requirements for storage were slashed from 40 to 7 rack units. These advantages of all-flash storage cater to the major market growth expected during the forecast period.
Saudi Arabia Data Center Storage Industry Overview
The Saudi Arabian data center storage market is moderately consolidated among the players and has gained a competitive edge in recent years. A few major players are Dell Inc., Hewlett Packard Enterprise, and NetApp Inc. These players, with a prominent market share, focus on expanding their customer base across the region. They leverage strategic collaborative initiatives to increase their market share and profitability.
- For instance, in March 2024, Western Digital expanded its product lineup with the introduction of a 24 TB WD Red Pro mechanical hard drive designed specifically for NAS (network attached storage) applications. The company launched a 24TB model earlier, targeted at enterprise and data center use.
Saudi Arabia Data Center Storage Market Leaders
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Dell Inc.
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Hewlett Packard Enterprise
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NetApp Inc.
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Huawei Technologies Co. Ltd.
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Kingston Technology Company Inc.
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Data Center Storage Market News
- March 2024: Pure Storage launched advanced data storage technologies and services. The company announced new self-service capabilities across its Pure1 storage management platform and Evergreen portfolio, offering software-based solutions, all via a single platform experience, to global customers.
- April 2023 -Hewlett Packard Enterprise announced new file, block, disaster, and backup recovery data services designed to help customers eliminate data silos, reduce cost and complexity, and improve performance. The new file storage data services deliver scale-out, enterprise-grade performance for data-intensive workloads, and the expanded block services provide mission-critical storage with mid-range economics.
Saudi Arabia Data Center Storage Market Report - Table of Contents
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
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
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.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Saudi Arabia Data Center Storage Industry Segmentation
Data center storage encompasses devices, hardware, networking equipment, and software technologies facilitating the storage of data and applications within data center facilities, which are used for storing, managing, retrieving, distributing, and backing up digital information within such facilities.
The Saudi Arabian data center storage market is segmented by storage technology (network attached storage (NAS), storage area network (SAN), and direct attached storage (DAS)), storage type (traditional storage, all-flash storage, and hybrid storage), and 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 Storage Technology | |
| Network Attached Storage (NAS) | |
| Storage Area Network (SAN) | |
| Direct Attached Storage (DAS) | |
| Other Technologies |
| By Storage Type | |
| Traditional Storage | |
| All-Flash Storage | |
| Hybrid Storage |
| By End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End Users |
Saudi Arabia Data Center Storage Market Research FAQs
How big is the Saudi Arabia Data Center Storage Market?
The Saudi Arabia Data Center Storage Market size is expected to reach USD 430.10 million in 2024 and grow at a CAGR of 13.60% to reach USD 813.5 million by 2029.
What is the current Saudi Arabia Data Center Storage Market size?
In 2024, the Saudi Arabia Data Center Storage Market size is expected to reach USD 430.10 million.
Who are the key players in Saudi Arabia Data Center Storage Market?
Dell Inc., Hewlett Packard Enterprise, NetApp Inc., Huawei Technologies Co. Ltd. and Kingston Technology Company Inc. are the major companies operating in the Saudi Arabia Data Center Storage Market.
What years does this Saudi Arabia Data Center Storage Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Data Center Storage Market size was estimated at USD 371.61 million. The report covers the Saudi Arabia Data Center Storage Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Data Center Storage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Data Center Storage Industry Report
Statistics for the 2024 Saudi Arabia Data Center Storage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Data Center Storage analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
