As per MRFR analysis, the GCC Software Defined Infrastructure Market Size was estimated at 0.93 (USD Billion) in 2023.The GCC Software Defined Infrastructure Market Industry is expected to grow from 1.5(USD Billion) in 2024 to 3.2 (USD Billion) by 2035. The GCC Software Defined Infrastructure Market CAGR (growth rate) is expected to be around 7.131% during the forecast period (2025 - 2035)
Key GCC Software Defined Infrastructure Market Trends Highlighted
The GCC Software Defined Infrastructure Market is undergoing substantial trends that are being driven by technological advancements and the growing number of digital transformation initiatives in the region. The adoption of Software Defined Infrastructure (SDI) is being driven by initiatives such as Saudi Vision 2030 and the UAE's Digital Government Strategy, which are prioritizing the development of smart cities and digital economies in GCC countries. This has resulted in a rise in the demand for IT resources that are flexible, scalable, and efficient, underscoring a general trend toward virtualized infrastructure that enables organizations to optimize their operations. Key market drivers include the increasing demand for cost-effective IT solutions and the increasing emphasis on cloud computing.Â
The adoption of SDI by organizations throughout the GCC is enabling a transition to agile IT environments by reducing infrastructure costs and improving operational efficiency. Furthermore, the increasing demand for infrastructure that can efficiently manage large volumes of data is being driven by the pervasive adoption of big data analytics and Internet of Things (IoT) technologies. The integration of SDI solutions with artificial intelligence (AI) and machine learning capabilities to facilitate automated infrastructure administration and improve decision-making processes is an opportunity that should be investigated.Â
The GCC region's emphasis on technological transformation of its economy provides a fertile opportunity for vendors to introduce innovative SDI solutions that are specifically designed to meet the requirements of the local market. Recent trends suggest that a growing number of GCC enterprises are utilizing managed services and partnerships with cloud providers to expedite their adoption of SDI, which further emphasizes the transition to hybrid cloud environments. Businesses seeking to improve their competitiveness and positioning in the swiftly changing digital landscape of the GCC must consider this trend.
GCC Software Defined Infrastructure Market Drivers
Growing Adoption of Cloud Computing Services
The GCC Software Defined Infrastructure Market Industry is experiencing significant growth driven by an increasing adoption of cloud computing services across the region. According to the Gulf Cooperation Council (GCC) eGovernment Program, the cloud computing sector in GCC countries is expected to reach approximately USD 2.2 billion by 2023, reflecting a robust annual growth rate. This shift towards cloud solutions is largely influenced by major organizations such as Saudi Telecom Company and Dubai Internet City, which have implemented extensive cloud strategies to enhance their service offerings.
As enterprises look to reduce operational costs and improve scalability, the demand for Software Defined Infrastructure solutions is expected to surge. Additionally, the regional government’s push towards digital transformation initiatives further propels this adoption, as evidenced by the UAE government’s smart city strategy which emphasizes cloud integration. This confluence of technology and strategic government policies encourages investments in Software Defined Infrastructure, marking it as a pivotal driver of market growth in the GCC region.
Increasing Demand for Enhanced Security Solutions
As cyber threats progressively intensify, organizations in the GCC Software Defined Infrastructure Market Industry are prioritizing enhanced security solutions. The Cybersecurity Strategy of Saudi Arabia outlines a commitment to improving the country’s cybersecurity posture, aiming to reduce security incidents by 30% in the next few years. With major players like Etisalat and Oman Telecommunications Company leading the charge in providing innovative security technologies, businesses are increasingly turning to Software Defined Infrastructure to achieve better control over their data and applications.
This focus on security is expected to drive significant growth in the Software Defined Infrastructure market, as companies seek integrated infrastructure solutions that not only provide flexibility but also bolster security against evolving cyber threats.
Government Initiatives and Investment in Digital Transformation
Government initiatives across the GCC are increasingly recognizing the importance of digital transformation for economic growth. In the UAE, the government has allocated substantial funding towards its 'UAE Vision 2021' framework, which aims to foster innovation and establish a first-rate digital economy.Â
This strategy is driving investments in Software Defined Infrastructure, with major tech firms such as Oracle and Microsoft boosting their presence in the region by establishing data centers specifically designed for cloud services.This influx of investment and focus on enhancing digital capabilities are set to propel the Software Defined Infrastructure market, aligning with the GCC’s broader economic diversification goals.
Rising Need for Scalability and Flexibility in IT Infrastructure
The GCC region is witnessing a rising demand for scalability and flexibility in IT infrastructure among enterprises, driven by the dynamic market landscape. The Bahrain Economic Development Board reports that more than 70% of local businesses are looking for more agile solutions to adapt to rapid market changes. This necessity has led organizations to explore Software Defined Infrastructure as a means to rapidly deploy resources and optimize performance.
Prominent companies such as Qatar Telecom are investing in Software Defined solutions to enhance their operational efficiencies, ensuring they can scale their services quickly in response to customer needs. The growing awareness of the benefits of adopting flexible IT solutions is significantly contributing to the expansion of the Software Defined Infrastructure market in the GCC.
Software Defined Infrastructure Market Type Insights
The GCC Software Defined Infrastructure Market has been evolving rapidly, driven by the need for innovative IT solutions and efficient resource management. The market's segmentation reveals critical insights into the predominant types: Compute, Storage, and Network. Compute solutions are crucial for managing workloads and ensuring that applications run seamlessly across various infrastructures, thereby playing a significant role in improving operational efficiency. Storage solutions have gained prominence as enterprises increasingly require secure, scalable, and flexible data storage options.
This segment is important considering the vast amounts of data generated within industries such as finance, healthcare, and telecommunications in the GCC region, necessitating robust storage solutions that can accommodate growth while ensuring high availability. Meanwhile, Network solutions facilitate seamless connectivity and performance optimization, essential for supporting the rise of cloud computing and digital transformation initiatives across the region. The GCC has been investing heavily in digital infrastructure as part of its Vision 2030 programs aimed at diversifying its economy and enhancing technological capabilities, thus making the Network segment particularly significant.The growth within these segments is supported by increasing demand for virtualization and cloud-based services, as businesses look for scalable and cost-effective solutions to enhance their IT landscapes.Â
The amalgamation of these elements underscores a trend where organizations are looking towards Software Defined Infrastructure to boost agility, reduce operational costs, and enhance service quality. As these segments continue to mature, they are expected to align closely with the technological advancements and strategic initiatives undertaken across the GCC, highlighting their significance in shaping the future of the region’s IT landscape.
Software Defined Infrastructure Market Deployment Model Insights
The GCC Software Defined Infrastructure Market exhibits a growing interest in various Deployment Models, particularly On-Premises, Cloud-Based, and Hybrid solutions, each catering to unique business needs. On-Premises deployment has historically been favored by organizations requiring stringent control over their data and infrastructure, especially in sectors like finance and healthcare, where compliance and security are critical. Cloud-Based solutions are gaining momentum due to their scalability and cost-effectiveness, attracting many GCC businesses leaning towards flexibility and minimal upfront investment.
As organizations increasingly embrace digital transformation, Hybrid models are emerging as a preferred choice, allowing businesses to leverage the strengths of both On-Premises and Cloud-Based environments. This adaptability fosters operational efficiency, enabling companies to optimize their resources while responding to market demands. Growing investments in infrastructure development across GCC countries further enhance the urgency for organizations to adopt efficient Deployment Models, ensuring they remain competitive in an increasingly digital landscape.As the GCC Software Defined Infrastructure Market evolves, these Deployment Models will play a pivotal role in shaping the future of the region's technology landscape.
Software Defined Infrastructure Market Technology Insights
The Technology segment of the GCC Software Defined Infrastructure Market is experiencing notable growth, driven by the rising demand for flexible and efficient IT solutions. Virtualization is increasingly being adopted across industries, as it allows organizations to optimize resource utilization and reduce costs, significantly impacting operational efficiency. Likewise, Containers have emerged as a vital technology, enabling faster application deployment and improved scalability, which are essential for businesses striving to innovate quickly in a competitive landscape.Infrastructure Automation is also gaining traction, as businesses recognize the need to streamline operations and reduce manual intervention, thereby enhancing reliability and speed.Â
Finally, Orchestration is critical for managing complex workflows and ensuring that interconnected services operate seamlessly, further emphasizing the significance of agile IT environments within the GCC region. Collectively, these focal areas illustrate the transformative potential of software-defined technologies, positioning the GCC Software Defined Infrastructure Market as a key player in the broader digital transformation landscape.The growth in these technologies is supported by government initiatives aimed at adopting advanced technologies, enhancing the region's global competitiveness.
Software Defined Infrastructure Market End User Insights
The End User segment of the GCC Software Defined Infrastructure Market plays a crucial role in shaping the overall landscape of the industry. This segment encompasses various sectors, including IT Telecommunications, BFSI (Banking, Financial Services and Insurance), Healthcare, Retail, and Government, which are significant contributors to market growth. The IT Telecommunications sub-segment is integral due to the rapid digital transformation and the demand for seamless connectivity, which drives the need for more agile and scalable infrastructure.Meanwhile, the BFSI sector is focusing on improving operational efficiency and security, thus increasing the adoption of software-defined solutions.Â
The Healthcare sector is also experiencing robust growth, as healthcare institutions require robust infrastructure to manage vast amounts of patient data and ensure compliance with regulatory standards. In Retail, the shift toward omnichannel strategies necessitates a flexible and responsive infrastructure to meet customer demands efficiently. Lastly, Government initiatives across GCC countries in adopting smart city solutions and enhancing public services further emphasize the importance of this segment.The combination of these sectors creates a diverse demand landscape, urging innovation and adaptation within the GCC Software Defined Infrastructure Market, paving the way for new opportunities and advancements.
GCC Software Defined Infrastructure Market Key Players and Competitive Insights
The GCC Software Defined Infrastructure Market is rapidly evolving, driven by increasing demand for agile and flexible IT environments that can adapt to dynamic business needs. This market is characterized by competitive insights that reveal various trends, growth drivers, and challenges faced by companies in the region. A notable shift towards cloud adoption, coupled with organizations seeking to optimize their IT infrastructure, has fostered a landscape where software-defined solutions are gaining significant traction. In this competitive arena, companies are continually innovating to deliver enhanced services, improve operational efficiency, and reduce costs.Â
The regional IT infrastructure landscape is also influenced by regulatory changes, technological advancements, and the rising prominence of digital transformation initiatives across diverse industry sectors.Hewlett Packard Enterprise holds a strong position in the GCC Software Defined Infrastructure Market, leveraging its legacy of innovation and extensive expertise in IT solutions. The company's strengths lie in its ability to offer a comprehensive portfolio, including networking, storage, and server solutions that cater specifically to the needs of various businesses in the GCC region. As organizations in the GCC are increasingly focusing on digital transformation, Hewlett Packard Enterprise's robust software-defined offerings allow for seamless integration and management of resources.Â
The company has established strategic partnerships and collaborations within the GCC, enabling it to enhance its market presence and deliver customer-centric solutions. A commitment to research and development essentially positions Hewlett Packard Enterprise at the forefront of technological advancements, facilitating its proactive approach to address the evolving requirements of its clients in the GCC market.Cisco remains a formidable player in the GCC Software Defined Infrastructure Market, recognized for its innovation in networking and cybersecurity. The company offers a wide array of products and services, including software-defined networking and data center solutions, which are essential for businesses aiming to modernize their infrastructure. Cisco's strength in delivering scalable and secure solutions tailored to the needs of GCC enterprises enables it to maintain a significant market presence.Â
Additionally, the company's focus on enhancing collaboration tools and cloud services further consolidates its position in the region. Cisco has also been active in pursuing strategic mergers and acquisitions to bolster its capabilities, ensuring that it can provide integrated and comprehensive offerings to organizations in the GCC. This forward-thinking approach, combined with an extensive partner ecosystem, allows Cisco to effectively meet the demands of the ever-evolving software-defined infrastructure landscape in the GCC.
Key Companies in the GCC Software Defined Infrastructure Market Include
GCC Software Defined Infrastructure Market Industry Developments
Cisco expanded its regional presence in Saudi Arabia in February 2025 by establishing cloud services data centers that were specifically designed for cloud-delivered security and collaboration tools, such as Webex. Concurrently, Cisco implemented a phased strategy for the development of local AI and manufacturing talent as part of its Country Digital Acceleration program, which bolstered the Kingdom's Vision 2030 objectives and fortified its digital infrastructure. Cisco introduced advanced infrastructure innovations in the MENA region, including the Unified Nexus Dashboard, Intelligent Packet Flow, and Hypershield security, which are all designed to support AI workloads across cloud fabrics. These innovations are suitable for AI-ready data centers.Â
Cisco was established as a key provider of AI compute and infrastructure in the region through the establishment of strategic partnerships with significant regional companies, including HUMAIN (Saudi Arabia), G42 (UAE), and Stargate UAE. Cisco introduced its N9300 Series Smart Switches in March 2025, which integrate security and networking capabilities—including AMD Pensando DPUs and Hypershield—directly into the hardware fabric. This streamlines data center architecture and enhances the efficacy of AI-focused deployments.
GCC Software Defined Infrastructure Market Segmentation Insights
Software Defined Infrastructure Market Type Outlook
Software Defined Infrastructure Market Deployment Model Outlook
Software Defined Infrastructure Market Technology Outlook
Software Defined Infrastructure Market End User Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 0.93(USD Billion) |
| MARKET SIZE 2024 | 1.5(USD Billion) |
| MARKET SIZE 2035 | 3.2(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 7.131% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Hewlett Packard Enterprise, Cisco, DigitalOcean, Dell Technologies, Cisco Meraki, Amazon, Google, Red Hat, Microsoft, Alibaba Cloud, NetApp, Oracle, IBM, VMware, Samsung SDS |
| SEGMENTS COVERED | Type, Deployment Model, Technology, End User |
| KEY MARKET OPPORTUNITIES | Increased demand for cloud solutions, Expansion of IoT applications, Adoption of AI and machine learning, Rising need for automated management, Growth in data center virtualization |
| KEY MARKET DYNAMICS | Cloud adoption growth, Increased operational efficiency, Demand for scalability, Cost-effective infrastructure solutions, Rise of automation technologies |
| COUNTRIES COVERED | GCC |
Frequently Asked Questions (FAQ):
The GCC Software Defined Infrastructure Market is expected to be valued at 1.5 billion USD in 2024.
By 2035, the market is projected to reach a value of 3.2 billion USD.
The expected CAGR for the GCC Software Defined Infrastructure Market from 2025 to 2035 is 7.131%.
The market is segmented into Compute, Storage, and Network.
The Compute segment is valued at 0.5 billion USD in 2024.
The Storage segment is expected to reach 1.4 billion USD by 2035.
The Network segment is projected to be valued at 0.3 billion USD in 2024.
Key players in the market include Hewlett Packard Enterprise, Cisco, Dell Technologies, and Microsoft among others.
Growth drivers include increasing demand for scalable IT infrastructure and the adoption of cloud technologies.
The ongoing global scenario has prompted increased investments in digital transformation projects across the region.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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