Saudi Arabia Hybrid Cloud Market Overview, 2030

Saudi Arabia’s hybrid cloud market is undergoing rapid evolution as both public and private sectors intensify efforts toward digital transformation under the Vision 2030 framework. This transformation is driven by the increasing need for scalable computing power, enhanced data sovereignty, and localized cloud solutions. Government initiatives like the National Transformation Program and widespread adoption of smart city technologies in NEOM, Riyadh, and other urban zones are elevating demand for hybrid cloud infrastructure that combines flexibility of public cloud with the control of private systems. Sectors such as oil & gas, healthcare, and finance, which handle sensitive and regulated data, are prioritizing hybrid solutions to meet compliance and operational continuity. Additionally, organizations are addressing latency-sensitive workloads with regional data centers by players such as STC Cloud, Oracle, and Google Cloud, which have committed to expanding their footprint in the Kingdom. The increased emphasis on AI and real-time analytics in logistics, energy monitoring, and national security is also bolstering the shift toward hybrid architectures. Furthermore, rising cybersecurity concerns are pushing enterprises to opt for hybrid models that offer greater data control through private infrastructure, while still leveraging cost-effective scalability of public cloud environments for less sensitive operations. Saudi Arabia’s strong telecommunications backbone, combined with rising fiber optic coverage and 5G deployment, is further facilitating the shift to cloud-native operations.

According to the research report "" Saudi Arabia Hybrid Cloud Market Overview, 2030,"" published by Bonafide Research, the Saudi Arabia Hybrid Cloud market is anticipated to grow at more than 17.83% from 2025 to 2030. The accelerated growth of the hybrid cloud market in Saudi Arabia can be attributed to sector-specific digitalization mandates, public cloud repatriation trends, and increasing enterprise maturity in multi-cloud strategies. Governmental and quasi-governmental entities are increasingly adopting hybrid models to comply with national data residency regulations enforced by the Communications, Space and Technology Commission (CST), particularly in healthcare and banking. This compliance push is coupled with the localization of major global cloud providers, such as Google Cloud’s launch of a local region in Dammam, which has lowered barriers for hybrid cloud configurations. In sectors like energy and utilities, companies are integrating AI and IoT with hybrid cloud platforms to enable predictive maintenance and remote operations for oil rigs and refinery systems. Similarly, universities and research institutions are utilizing hybrid cloud to manage large-scale simulations and e-learning platforms, especially during peak demand cycles. The post-pandemic normalization of hybrid work models has also expanded adoption, as companies seek to maintain business continuity while ensuring sensitive data remains on-premises. Additionally, the cost predictability and operational resilience offered by hybrid cloud setups are appealing to enterprises transitioning from legacy infrastructure, particularly in retail and manufacturing. Regulatory readiness and growing cloud skills availability, supported by programs from entities like MCIT and SDAIA, are further reducing adoption friction.

In Saudi Arabia’s hybrid cloud ecosystem, the Software as a Service (SaaS) segment currently holds the largest share due to widespread use across productivity suites, customer relationship management tools, and ERP platforms by government ministries, banks, and educational institutions. These applications are favored for their ease of deployment and minimal infrastructure dependencies. However, the Platform as a Service (PaaS) segment is emerging as the fastest-growing, fueled by increased developer activity within the Kingdom and a surge in demand for custom cloud-native applications. As digital transformation accelerates across sectors like logistics, fintech, and energy, organizations are prioritizing low-code and microservices platforms to develop modular applications, reduce deployment time, and improve scalability. PaaS solutions are also being integrated with DevOps practices to support continuous integration and delivery pipelines, particularly in firms aiming for agile innovation. Infrastructure as a Service (IaaS) continues to play a critical role in hosting core applications for large-scale enterprises, but its growth is now outpaced by platform-based services due to the need for streamlined development environments. Moreover, cloud providers like IBM, Oracle, and Microsoft Azure are tailoring their service models to align with local compliance and customization needs, which supports increased PaaS adoption. The Kingdom's strategic investment in AI and big data initiatives, through entities like SDAIA, is further creating demand for development platforms that can support model training, data integration, and deployment making PaaS a critical enabler in the hybrid cloud expansion narrative.

Solution segment currently constitutes the largest portion of adoption, particularly in industries looking to deploy end-to-end cloud management platforms, unified data services, and integrated networking solutions. Enterprises across sectors like banking, energy, and defense are leveraging hybrid cloud solutions to optimize application placement, improve load balancing, and ensure real-time data synchronization between on-premises and public cloud environments. These solutions often include orchestration tools, disaster recovery systems, and hybrid cloud storage frameworks all of which are vital for ensuring regulatory compliance and uninterrupted business services. However, the services segment is witnessing the fastest growth as organizations require specialized expertise to design, deploy, and manage hybrid architectures. System integration, managed services, and cloud consulting are in particularly high demand from mid-market companies and government entities with limited in-house IT capabilities. Local managed service providers (MSPs) and international players are expanding their operations in the Kingdom, offering hybrid advisory services that align with CST regulations and organizational maturity levels. Training and support services are also expanding rapidly, with enterprise demand for cloud security monitoring, application migration, and cost optimization analysis. Moreover, hybrid cloud deployments increasingly include AI-based monitoring services to ensure performance optimization and predictive maintenance. The government’s push for localization and knowledge transfer is also driving hybrid cloud service expansion through partnerships with local universities and innovation hubs.

Large enterprises remain the primary adopters of hybrid cloud solutions in Saudi Arabia, driven by their complex operations, large-scale data workloads, and stringent compliance obligations. Corporates in energy, finance, and telecom have already made significant strides in hybrid integration, often using it to modernize legacy IT infrastructure while enabling scalability through public cloud access. These organizations prioritize private clouds for sensitive operations like customer data management or financial transactions while using public cloud for data analytics, customer engagement, or mobile services. Several conglomerates are also establishing their own private clouds within local data centers, supporting both performance and regulatory alignment. On the other hand, small and medium-sized enterprises (SMEs) are emerging as the fastest-growing segment as they embrace hybrid models to balance agility and cost-efficiency. SMEs, particularly in e-commerce, retail, and professional services, are deploying hybrid solutions to run business applications, manage online platforms, and enable remote collaboration while ensuring control over sensitive customer data. The availability of pay-as-you-go models and bundled solutions offered by cloud vendors has further democratized access to hybrid cloud for this segment. Training programs, vendor-backed accelerators, and localized service support are encouraging cloud maturity among SMEs, particularly in Riyadh, Jeddah, and the Eastern Province. As SMEs increasingly adopt digital invoicing, CRM platforms, and AI-driven customer service tools, hybrid cloud becomes a scalable path forward.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Hybrid Cloud Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Service Model
• Software as a Service (SaaS)
• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)

By Component
• Solution
• Services

By Enterprise Size
• Large Enterprises
• Small and Medium-sized Enterprises

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry. Show more