Saudi Arabia Data Center Networking Market Size
| 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
*Disclaimer: Major Players sorted in no particular order |
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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 Market Trends
Ethernet Switches is Anticipated to be the Largest Segment
- An Ethernet switch is a type of networking hardware that is the foundation of networks and the Internet. Ethernet switches join wired devices such as computers, Wi-Fi access points, PoE lighting and IoT devices, and servers onto an Ethernet LAN so that they can communicate with each other and the Internet.
- Ethernet switches have wide applications in industrial infrastructure such as smart grid, security and surveillance, intelligent rail and transportation, and other utilities driving the industrial Ethernet switch market. In smart grids, Ethernet switches play a key role in substation automation. This is because Ethernet switches reduce the effort and complexity of cabling between many power transmission and distribution substation devices by integrating them into Ethernet-based networks.
- Further, 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. To handle the rising data traffic, newer models such as Gigabit Ethernet switches offer incredibly high data transfer rates (1 Gbps) that can significantly exceed wireless bandwidth.
- Further, smart Ethernet switches with Power-over-Ethernet (PoE) technology are used for security and monitoring. PoE networks transfer power to local network cables and then to connected devices. This is useful for Internet protocol-based monitoring systems. Helps with accessible browser-based communication and user interface.
- In November 2022, Siemens renewed and upgraded its Scalance XC/XR-300 series of industrial Ethernet switches with additional features for next-generation industrial networks. The so-called managed layer 2 switches of the Scalance X Industrial Ethernet Switch product family are available in both a compact model and a 19-inch version for control cabinets.
IT & Telecommunication is Anticipated to be the Fastest Growing Segment
- To advance the Vision 2030 goals of digital transformation through e-commerce, digital education, digital health, smart cities, national data, and e-government, MCIT aims to develop a strong, state-of-the-art digital infrastructure. Saudi Arabia's ICT strategy for this year calls for creating more than 25,000 new jobs, growing the IT industry and new technologies by 50%, and increasing the sector's contribution to GDP by USD 13.3 billion.
- As digitization increases, the government's focus is now on establishing 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 the Communications and Technology Information Commission adopted, intends to improve cloud computing services in the country and promote regulatory openness. The country's ability to create data centers would be made easier by the need for racks as large amounts of data are processed and stored.
- Based on the government's digital transformation initiatives and advanced tech such as IoT and artificial intelligence (AI) across the enterprise, Saudi Arabia's ICT market is expected to grow steadily during the forecast period. Telecom operators are investing significant efforts in developing enterprise-centric or application-specific service portfolios to leverage investments in 5G networks, which is expected to increase telecom services revenues in the region.
- Around 97.6% of people are expected to be online by 2026 as governments seek additional funding for broadband networks. With spectrum above 1100 GHz now liberalized and available to carriers, mobile internet speeds have increased to 105.42 Mbps. Saudi Arabia currently ranks 6th internationally and 2nd among G20 countries, approximately 250% above the global average.
- Saudi Arabia aims to have state-of-the-art digital infrastructure and connectivity by 2030. NEOM, Red Sea, Qiddiya, Waad Alshamal, and SPARK are the smart cities that the country is currently building. Discussion topics include artificial intelligence, data centers, cloud computing, and industrialized Internet of Things (IoT). Saudi Arabia also wants to build state-of-the-art infrastructure in its current five cities in order to be among the top 100 cities in the world.
Saudi Arabia Data Center Networking Industry Overview
The Saudi Arabia Data Center Cooling Market exhibits moderate competitiveness and has recently gained a competitive edge. In terms of market share, key players such as VMware Inc., Eaton Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd., and Schneider Electric are implementing strategies like partnerships and acquisitions. These strategies aim to enhance their product offerings and establish sustainable competitive advantages.
In September 2023, Juniper Networks, recognized as a secure, AI-driven networking entity, unveiled new features for Juniper Apstra, focusing on enhancing the operator experience and streamlining the deployment and management of private data center infrastructure. These novel features include simplified data collection and visualization through graph databases, seamless integration of flow data from diverse switch vendors, and automated provisioning leveraging Terraform, thereby emphasizing a user-centric approach to data center functionalities.
Saudi Arabia Data Center Networking Market Leaders
VMware Inc
Eaton Corporation
Cisco Systems Inc.
Huawei Technologies Co. Ltd.
Schneider Electric
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Data Center Networking Market News
- July 2023: Juniper Networks, a leading provider of secure AI-driven networks, announced an enterprise-class wired access switch that leverages a modern microservices cloud and Mist AI. This switch aims to deliver superior performance, ease of use, flexibility, and security under the new EX4100 series, providing access to all enterprise layer switching environments, including campus fabric architectures.
- May 2023: NVIDIA has announced SpectrumXtreme, an accelerated networking platform manufactured to enhance the performance and efficiency of the cloud-based on Ethernet AI. NVIDIA Spectrum-X is developed on networking developments powered by the firm coupling of the NVIDIA Spectrum-4 Ethernet switch with the NVIDIA BlueField-3 DPU, attaining 1.7x better overall AI performance and power efficiency, along with consistent, predictable performance in multi-tenant environments.
Saudi Arabia Data Center Networking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & 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 Increasing Trend of High-Performance Computing across Europe
4.2.2 Growing Investments in IT& Telecom Sector
4.3 Market Restraints
4.3.1 Regulatory constraints
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 Component
5.1.1 By Product
5.1.1.1 Ethernet Switches
5.1.1.2 Router
5.1.1.3 Storage Area Network (SAN)
5.1.1.4 Application Delivery Controller (ADC)
5.1.1.5 Other Networking Equipment
5.1.2 By Services
5.1.2.1 Installation & Integration
5.1.2.2 Training & Consulting
5.1.2.3 Support & Maintenance
5.2 End-User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End-Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Cisco Systems Inc.
6.1.2 VMware Inc
6.1.3 Huawei Device Co., Ltd.
6.1.4 Schneider Electric
6.1.5 Eaton Corporation
6.1.6 Dell Inc
6.1.7 IBM Corporation
6.1.8 HP Development Company, L.P.
6.1.9 ARAB ENGINEERS CO. LTD.
6.1.10 Extreme Networks Inc.
6.1.11 NVIDIA Corporation
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
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.
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Saudi Arabia Data Center Networking Market Research FAQs
How big is the Saudi Arabia Data Center Networking Market?
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.
What is the current Saudi Arabia Data Center Networking Market size?
In 2024, the Saudi Arabia Data Center Networking Market size is expected to reach USD 0.34 billion.
Who are the key players in Saudi Arabia Data Center Networking Market?
VMware Inc, Eaton Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd. and Schneider Electric are the major companies operating in the Saudi Arabia Data Center Networking Market.
What years does this Saudi Arabia Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Data Center Networking Market size was estimated at USD 0.29 billion. The report covers the Saudi Arabia Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Data Center Networking Industry Report
Statistics for the 2024 Saudi Arabia Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Data Center Networking analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
