Blog

According to the latest market research study published by P&S Intelligence, the Saudi Arabian cybersecurity market is experiencing a dynamic transformation, driven by the nation’s accelerating digital shift and commitment to secure its digital infrastructure. The market is projected to generate USD 672.4 million in 2024 and is forecast to reach USD 1,477.2 million by 2030, advancing at a strong CAGR of 14.0% during 2024–2030. This remarkable growth is underpinned by the government's Vision 2030 initiative, which promotes economic diversification through digitalization, e-commerce expansion, and investments in new technologies.

As cyber threats become increasingly sophisticated, the need for comprehensive cybersecurity solutions has intensified across industries. In 2022 alone, Saudi Arabia recorded 110 million cyber threats—more than double the 54 million threats detected in 2021—highlighting the critical demand for robust cybersecurity frameworks. Regulatory developments, including the enactment of the Personal Data Protection Law (PDPL), the Anti-Cyber Crime Law, and sector-specific frameworks from authorities like SAMA and the National Cybersecurity Authority (NCA), further amplify the market's trajectory by mandating higher security standards across organizations.

Key Insights

The network security segment dominates the Saudi cybersecurity market, accounting for 40% of the revenue in 2024. It is preferred for safeguarding against unauthorized access and remains essential in the face of rising remote work and IT reliance.

Cloud security is the fastest-growing type, with a projected CAGR of 14.5% through 2030. This surge is fueled by increased adoption of cloud platforms, particularly in the IT industry, and the advantages of features such as multifactor authentication and data encryption.

On-premises deployment holds the largest market share at 55% in 2024, owing to greater customization and data control. However, cloud deployment is expanding rapidly due to its cost-effectiveness, scalability, and regulatory alignment.

The hybrid deployment model is gaining popularity as it balances control with flexibility, enabling organizations to optimize data protection strategies while managing cost and performance efficiently.

The BFSI sector is the leading end-user, capturing 35% of the market in 2024. With high volumes of sensitive financial data, this sector faces heightened cybersecurity risks, prompting substantial investments in protection mechanisms.

Other key end-user industries include IT & ITeS, healthcare, manufacturing, telecommunications, and government. These sectors are embracing cybersecurity to shield critical operations from cyberattacks and ensure regulatory compliance.

Al-Riyadh province emerges as both the largest and fastest-growing regional market due to the concentration of enterprises, digital infrastructure, and governmental institutions, all of which prioritize cyber defense systems.

Saudi Arabia’s push to become a regional technology leader is reflected in its planned investment of USD 40 billion in AI. The integration of artificial intelligence (AI) and machine learning (ML) into cybersecurity solutions significantly enhances real-time threat detection and decision-making capabilities.

AI and ML technologies are becoming standard tools in modern cybersecurity systems. They empower autonomous decision-making, reduce human error, and allow for early identification and mitigation of threats.

Government regulations such as the PDPL are pivotal growth drivers. These laws compel organizations to adopt state-of-the-art cybersecurity frameworks to manage and protect personal and organizational data.

The competitive landscape is fragmented, with numerous domestic and international players striving to innovate and differentiate. Companies are increasingly focusing on strategic partnerships, mergers, and customized solutions tailored to diverse industry needs.

Opportunities are also emerging from the proliferation of Internet of Things (IoT) devices. As industries incorporate connected technologies, the need for endpoint security and IoT-specific protection tools is expanding rapidly.

With Saudi Arabia's ICT market valued at over USD 40.9 billion in 2023—the largest in the Middle East and Africa—the cybersecurity segment is strategically positioned to benefit from ongoing digital expansion and rising security awareness.