Rise in the number of data centers and development of smart cities is expected to drive the Saudi Arabia server market in the forecast period.
The launch of government initiatives such as Saudi Vision 2030, Neom City construction, among others is supporting the growth of the server market. Saudi Vision 2030 aims to transform the city by adopting the latest technologies to increase efficiency and transparency in all systems. It promotes the digitization of major industry verticals such as healthcare, BFSI, manufacturing, among others. Leading authorities are also aiming to provide e-Government online services to consumers such as online job searches, passport and civil affairs, e-learning services, online payment of services.
The COVID-19 outbreak across the world which has been declared as a pandemic by World Health Organization has affected several countries adversely. Leading authorities of Saudi Arabia imposed lockdown restrictions and released a set of precautionary measures to contain the spread of novel coronavirus. Organizations imposed work from home policy to ensure employees protection which led to a surge in the generation of a large amount of data through various industries requiring the proper storage of data with maximum data privacy.
The demand for OTT platforms increases during this period and the consumer preference shift towards the e-commerce channels which generates a huge volume of data for seamless streaming surged the growth of the server market during this period.
However, high maintenance and installation costs may create a hindrance in the Saudi Arabia server market growth.
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Saudi Arabia server market is segmented into hardware, operating system, enterprise size, end user, distribution channel, regional distribution, and company. Based on enterprise size, the market can be divided into small, medium, and large. The large enterprise size segment is expected to account for major market share in the forecast period, 2022-2026.
Large enterprise has huge funds and can spend on the development of their IT infrastructure. These enterprises tie up with the IT service provider companies to ensure hassle-free service along with timely delivery and personalization of services according to the organization's need is contributing to accelerate the server market growth.
Based on distribution channel, the market can be divided into reseller, direct, systems integrator, and other. The direct channel segment is expected to witness the fastest incremental growth in the next five years as they sell their services directly to customers thereby cutting down the intermediary and promotional costs. These channels provide services by offering customized designs at reasonable costs.
Based on end user, the market can be divided into telecommunication, IT & ITES, government, BFSI, others. The IT & ITES segment is expected to hold a major market share in the forecast period due to the rise in network connections and higher penetration of smartphones. The rise in disposable income among consumers is enabling them to adopt fast internet services. The expected roll-out of 5G technology and adoption of advanced technologies by IT companies is accelerating the segment growth.
Dell Technologies Inc., Eaton Corporation Plc, Fujitsu Ltd., Hewlett Packard Enterprise Saudi Arabia, Legrand SA, Oracle Corp., Panduit Corporation, Saudi Arabia, Rittal GmbH & Co. KG, Schneider Electric SE, Vertiv Group Corp, and others are some of the leading players operating in Saudi Arabia server market. Companies operating in the market are using strategies such as joint ventures, product launches, mergers, and research collaborations to boost their share and increase their geographic reach.
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“The high demand for high-power computing services due to the rise in the number of applications supporting hyper converged infrastructure, software defined solutions and big data analytics is contributing to the high server market growth in the next five years. Roll-out of 5G technology and introduction of novel applications requiring fulfillment of specific configurations coupled with growing adoption of cloud-based services by the organizations is anticipated to propel the server market growth till 2026” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“Saudi Arabia Server Market By Hardware (Rack, Blade, Tower) By Operating System (Linux, Windows, IOS, Others) By Enterprise Size (Small, Medium, Large) By End User (Telecommunication, IT & ITES, Government, BFSI, Others) By Distribution Channel (Reseller, Direct, Systems Integrator, Other), By Region, Company Forecast & Opportunities, 2026”, has evaluated the future growth potential of Saudi Arabia server market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Saudi Arabia server market.
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