Saudi IT market set for double-digit growth in 2014

IDC forecasts 10.7% YoY surge in kingdom’s tech spend, to $11.5bn

Tags: International Data CorporationSaudi Arabia
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Saudi IT market set for double-digit growth in 2014 The consumer sector is expected to remain the kingdom’s largest in 2014, with an expected spend of $4.18bn.
By Staff Writer Published  January 26, 2014

Overall IT spending in Saudi Arabia is set to increase 10.7%, year on year, in 2014 to total $11.5bn, according to the latest forecast from International Data Corporation (IDC).

The research firm's recently released "Saudi Arabia Vertical Markets 2013-2017 IT Spending Forecast" predicts that the consumer, communications, finance, and oil and gas sectors will be the biggest IT spenders during the five-year forecast period.

The consumer sector is expected to remain the largest in Saudi Arabia in 2014, with expected IT spend of $4.18bn, accounting for 36.4% of the kingdom's total IT market.

The combined transport, communications, and utilities grouping will be the second-largest vertical market, with such organisations investing $1.95bn in 2014. This vertical is forecast to grow at a compound annual growth rate (CAGR) of 8.5% over the 2013-2017 period, driven by ongoing and planned infrastructure investments by the government.

The public sector, which includes government, healthcare, and education, will remain the third-biggest vertical in 2014 with $1.78bn in IT investments, representing 15.5% market share. The major drivers of growth in this sector will be increased social spending on e-government initiatives with the aim of improving service delivery to residents, as well as the construction of new schools and hospitals and upgrades to existing ones.

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