Telecom Market In Saudi Arabia size is set to grow by USD 3.06 bn from 2024-2028, increased demand for broadband to boost the market growth, Technavio

NEW YORK, May 13, 2024 /PRNewswire/ -- The global telecom market in saudi arabia size is estimated to grow by USD 3.06 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 3.15% during the forecast period.

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Market Driver

The telecom market in Saudi Arabia is experiencing significant growth with the adoption of 5G technology. This advanced wireless network enhances download speeds, minimizes latency, and improves response times, providing a competitive edge to enterprises. In August 2023, Integrated Telecom Co., Saudi Arabia's largest telecom operator, announced a collaboration with Oracle to drive 5G innovation across the Middle East and Africa. Key players, including infrastructure providers, telephone service providers, and broadband companies, are investing in 5G technology, smartphone market expansion, and fiberisation of towers for optic fibre rollouts. The Indian Economy, labs, engineering institutions, and business models are also exploring 5G's employment potential. The Government of India, through the DoT, is promoting broadband connectivity to villages, increasing rural tele-density, and realizing revenue through subscriber growth and GB wireless data. The domestic market size is expanding, with an increase in telephone connections, MNP requests, and urban and rural telephone connections. The GSMA, AI, Robotics, Telesat, Lightspeed, and OneWeb are contributing to 5G infrastructures, while customer inclination towards smartphone devices and high-speed data connectivity fuels the market's growth. Value-added managed services are also gaining traction, further enriching the telecom landscape in Saudi Arabia. 

Market Challenges

• In Saudi Arabia, the telecom market faces escalating risks due to the surge in network attacks and online security threats. As digitization advances and telecommunications infrastructure becomes indispensable, the potential fallout from cyber breaches grows. Consumer trust in telecom services can be eroded by security lapses, hindering the adoption of new technologies and services such as e-commerce, VoIP services, and cloud gaming. Critical services and communication channels can be disrupted, impacting both businesses and government operations. Key sectors including healthcare, manufacturing, energy and utilities, and SMEs and MNCs are at risk. The wireless segment, with its reliance on 5G wave, artificial intelligence, and wireless densification, is particularly vulnerable. Key players like Verizon Communications must prioritize robust security measures to mitigate these risks and safeguard their subscribers' data.

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Segment Overview

This telecom market in Saudi Arabia report extensively covers market segmentation by

1. End-user
• 1.1 Consumer
• 1.2 Business
2. Type
• 2.1 Wireless
• 2.2 Wireline
3. Application
• 3.1 Residential
• 3.2 Commercial
4. Geography
• 4.1 Middle East and Africa

1.1 Consumer- The Telecom Market in Saudi Arabia continues to evolve, driven by infrastructure development, 5G technology, and the burgeoning smartphone market. Infrastructure expansion, including the utilization of White Space Spectrum, is crucial for supporting the growing demand for broadband and 5G connections. Telephone service providers are investing in 5G infrastructures to cater to the increasing number of mobile subscribers, with approximately 37.93 million internet users and 70 million social media users in 2023. The Indian Economy, with its focus on digital inclusion, is also a significant player in this domain, with the Union Budget 2023 allocating resources for labs and engineering institutions to develop innovative business models and create employment potential.
The DoT's efforts towards fiberisation of towers and optic fibre rollouts aim to enhance broadband speeds and realize revenue from increased Internet connections. Customer inclination towards smartphone devices and high-speed data connectivity fuels the demand for value-added managed services, such as Artificial Intelligence (AI) and Robotics. Telesat, Lightspeed, and OneWeb are among the key players investing in 5G technology to cater to the Domestic market size, which includes urban and rural telephone connections, with rural tele-density expected to increase significantly. The GSMA anticipates continued growth in the sector, with MNP requests and GB wireless data consumption on the rise.

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Research Analysis

The Telecom Market in Saudi Arabia is experiencing significant growth, driven by the increasing demand for advanced communication technologies. With the rollout of 5G infrastructure, telephone service providers are expanding their offerings to include high-speed data connectivity and value-added managed services. The smartphone market is booming, with an increasing number of installed devices, leading to a customer inclination towards White Space Spectrum technologies for uninterrupted connectivity. Artificial Intelligence (AI) and Robotics are also gaining traction, with applications in various industries. Telesat, Lightspeed, and OneWeb are among the key players investing in 5G infrastructures to meet the growing demand for telecommunications services. The era of facsimile and telegraphs has given way to wired infrastructure, as the focus shifts towards providing reliable and efficient broadband solutions.

Market Research Overview

The Telecom market in Saudi Arabia is a significant and growing sector, driven by the Kingdom's Vision 2030 digital transformation initiative. Five major telecom providers, including three global operators and two local ones, dominate the market. These companies offer various services such as voice, data, internet, and ICT solutions. The Saudi telecom industry is characterized by its high penetration rates, with mobile broadband coverage reaching over 99%. The market is competitive, with providers focusing on improving network quality, expanding coverage, and offering innovative services. Broadband speeds are a key concern, with the National Broadband Plan aiming to provide minimum speeds of 100 Mbps to all households by 2023. The market also faces challenges such as increasing competition, regulatory issues, and the need to invest in new technologies like 5G and IoT. Despite these challenges, the future looks bright for the Saudi Telecom market, with continued growth and innovation expected.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Consumer
• Business
• Type
• Wireless
• Wireline
• Application
• Residential
• Commercial
• Geography
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio