Saudi Arabia IT Services Market is Expected to Register a 9.06% CAGR Through 2030F

Saudi Arabia IT Services Market is expected to be led by the Managed Services segment due to rising demand for scalable, cost-efficient, and secure digital operations across public and private sectors, during the forecast period.

According to TechSci Research report, “Saudi Arabia IT Services Market – By Region, Competition, Forecast and Opportunities, 2020-2030F”, Saudi Arabia IT Services Market was valued at USD 5.58 Billion in 2024 and is expected to reach USD 9.39 Billion by 2030 with a CAGR of 9.06% during the forecast period.

Saudi Arabia’s demographic composition—with over two-thirds of its population under the age of 35—is fostering rapid digital consumption and technology-led social transformation, significantly driving the Information Technology Services Market. The country’s young and digitally native population is propelling demand for personalized, mobile-first, and intelligent digital experiences, thereby encouraging businesses to deploy advanced applications, smart platforms, and automation tools. From fintech apps and e-commerce platforms to e-learning portals and streaming services, this surge in digital usage necessitates backend support in the form of scalable infrastructure, real-time analytics, and software development services, all of which are core to the Information Technology services sector.

At the same time, the government is heavily investing in upskilling initiatives to create a future-ready digital workforce. Programs like the Digital Skills Bootcamp, the Future Skills Program, and partnerships with global technology firms are expanding the local talent pool in cloud engineering, cybersecurity, data science, and software development. This workforce transformation is empowering Saudi companies to increase in-house innovation while still depending on external Information Technology service firms for complex or large-scale deployments.

The combination of a youthful, tech-savvy user base and an increasingly skilled digital workforce is fostering a cycle of innovation and demand that positions the Information Technology Services Market for sustained long-term growth. According to the General Authority for Statistics, internet penetration among Saudis aged 15–34 exceeded 98 percent in 2023. This exceptionally high level of digital engagement among the youth is driving demand for sophisticated digital services and platforms, thereby creating parallel growth in Information Technology services to support application development, infrastructure scaling, and real-time user experience optimization.

Browse over XX Market data Figures spread through XX Pages and an in-depth TOC on " Saudi Arabia IT Services Market.” 

Based on End-User Industry, The Government & Defense segment emerged as the fastest-growing segment in the Saudi Arabia IT Services Market in 2024. This surge is largely attributed to the Kingdom’s aggressive push for digital governance and security modernization under Vision 2030. Government ministries, municipalities, and defense agencies are increasingly investing in cloud computing, cybersecurity, data analytics, and AI-powered platforms to enhance operational efficiency, citizen services, and national security infrastructure. The Digital Government Authority (DGA) and the Saudi Data and Artificial Intelligence Authority (SDAIA) are leading initiatives that are rapidly transforming legacy systems into agile, digital-first ecosystems.

The demand for secure, scalable IT environments within the defense sector is rising, particularly in response to evolving geopolitical dynamics and regional security requirements. Smart surveillance, critical infrastructure protection, and command-and-control platforms are now high-priority investments. Several high-value partnerships between global technology companies and government entities are accelerating this growth trajectory. With continuous funding, regulatory support, and an emphasis on national digital resilience, the Government & Defense segment is expected to maintain its rapid expansion and become a key pillar of the Saudi IT services market in the coming years.

In recent years, Western Saudi Arabia has emerged as the fastest-growing region in the Saudi Arabian IT Services Market, fueled by strategic development projects, urban expansion, and a focus on digital infrastructure. Cities such as Jeddah, Makkah, and Madinah are witnessing a surge in demand for IT services due to growing commercial activities, digital transformation in the public sector, and modernization of transportation and municipal services. Additionally, the region's increasing population and tourism activity, particularly related to religious tourism, are creating new avenues for digital solutions in logistics, healthcare, and retail.

Western Saudi Arabia is also home to some of the Kingdom’s most ambitious initiatives under Vision 2030, notably NEOM, a futuristic smart city designed to become a global hub for innovation, artificial intelligence, and green technology. This megaproject alone is expected to attract significant investment in cloud computing, cybersecurity, managed services, and smart infrastructure over the next decade. The presence of international firms and startups in the NEOM ecosystem is accelerating the adoption of cutting-edge IT solutions.

The region benefits from improved digital readiness, favorable regulations, and government efforts to decentralize technology adoption beyond Riyadh. With a supportive policy environment and growing digital needs, Western Saudi Arabia is expected to lead future growth in the Kingdom’s IT services landscape.

Major companies operating in the Saudi Arabia IT Services Market are:

• Saudi Telecom Company
• Etihad Etisalat Company (Mobily)
• Mobile Telecommunications Company Saudi Arabia (Zain KSA)
• SAP SE
• Oracle Corporation
• Microsoft Corporation
• IBM Corporation
• Alphabet Inc.

Download Free Sample Report

Customers can also request 10% free customization on this report.

“The Saudi Arabia IT Services Market is poised for robust growth, driven by national digital transformation initiatives under Vision 2030, widespread cloud adoption, and increased investment in artificial intelligence and cybersecurity. Government and private sector collaboration is accelerating the demand for managed services, smart infrastructure, and digital platforms. The establishment of local data centers by global tech firms and the rise of smart city projects like NEOM will further fuel growth. A growing tech-savvy population and a strong focus on digital skills development will support long-term expansion, making Saudi Arabia a leading IT hub in the Middle East.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Saudi Arabia IT Services Market By Service Type (Managed Services, Professional Services), By Deployment Type (On-Premises, Cloud-Based), By End-User Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Manufacturing, Retail, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Saudi Arabia IT Services 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 make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia IT Services Market.

Contact

TechSci Research LLC

420 Lexington Avenue,

Suite 300, New York,

United States- 10170                   

Tel: +13322586602

Email: [email protected]

Website: www.techsciresearch.com