The global biomedical refrigerators and freezers market is slated to magnify at a strong CAGR of 4.2% over the period amid 2016 and 2024. The market, which was worth $2.91 billion in 2015, is predicted to upswing to $4.28 billion by 2024…
BMI View: Uncertainty surrounds Saudi Arabia's economic and IT market outlook in a lower oil price
environment after there were steep declines in the oil price since 2014. The core scenario is for a
stabilisation in oil prices, and economic performance, that will support an IT spending CAGR of 2.8% over
2016-2020. The hardware segment has the weakest outlook where PC saturation and the threat of
cannibalisation by smartphones are negatives - so it will be software and services spending that drive the
market expansion to 2020. Relatively low adoption rates, new opportunities such as cloud computing and
smart services, as well as opportunities from economic diversification and modernisation are all positives,
but we warn that there will be a downside if the oil price moves lower again and affects government
spending, or if the execution of economic diversification initiatives is unsuccessful.
Latest Updates & Industry Developments
- Computer Hardware Sales: SAR15.1bn in 2016 to SAR15.2bn in 2020. Flat market envisaged, as
population growth driver is offset by the potential for cannibalisation of PC sales, particularly tablets, by
- Software Sales: SAR7.9bn in 2016 to SAR9.4bn in 2020. Low adoption rates for software and economic
diversification efforts mean there is considerable potential, but much will depend on the execution of
government policies to reduce dependence on oil and gas.
- IT Services Sales: SAR10.2bn in 2016 to SAR12.4bn in 2020. The cost savings and flexibility offered
by services such as outsourcing, cloud computing and smart services should prove attractive in an
uncertain economic environment and drive segment outperformance.