Saudi Arabia’s Telecom ICT infrastructure market stood at $1,542.32m in 2020 and is forecast to grow at a CAGR (compound annual growth rate) of 9.01% until 2030, according to a report published by TechSci Research, a global market research firm.
Growth in this market is driven by increasing spending in the telecom and ICT industry by the Saudi government, the report added.
Telecom ICT infrastructure includes all the information and communication technology infrastructure and systems that are used in an organisation, such as software, hardware, firmware, networks, and company websites.
The growing Bring Your Own Device (BYOD) trend is also resulting in increased demand for improving telecom connectivity across various enterprises. It offers flexibility for employees in working from home, client location or in transit thereby propelling the market during the forecast period.
The supportive government initiatives for the commercialisation of 5G network are propelling the market. Furthermore, upgradation of existing telecom infrastructure by the telecom service providers is spurring growth.
Also, increasing cellular internet penetration coupled with the growing adoption of cloud is anticipated to fuel the market growth through 2030. However, the increasing rate of cybercrime over the wireless telecom network can hamper the growth of the market.
The Saudi telecom ICT infrastructure market is segmented based on component, deployment mode, network type, end-user, company and region. Based on component, the market can be categorised into hardware, software and services.
The services component can be further bifurcated into professional and managed. The professional services segment is expected to dominate the market since these are the most preferred type of services which form the backbone of the telecom infrastructure.
Professional services are project-based and usually address a specific problem or challenge. They help businesses overcome challenges through a dedicated project, such as cloud migration or the deployment of new hardware.
On the basis of deployment mode, the market can be categorised into cloud and on-premises. Cloud segment is expected to dominate the market owing to the expanding cloud computing industry in the country.
The supportive government policies such as Saudi Vision 2030 and National Digital Transformation are expected to boost the market.
Major players operating in this market include ZTE Corporation, Ciena Corporation, Cisco Systems, Inc, CommScope, Inc, Fortinet, Inc, Fujitsu Ltd, Huawei Technologies Co., Ltd, Juniper Networks Inc and others.
The companies are developing advanced technologies and launching new services in order to stay competitive in the market. Other strategies include mergers and acquisitions and new service developments.