The Saudi Arabian digital transaction management market revenue stood at $60.88 million in 2020, and it is predicted to surge to $1,288.27 million by 2030. According to the estimates of the market research company, P&S Intelligence, the market will progress at a CAGR of 35.7% from 2020 to 2030 (forecast period). The major factors propelling the growth rate of the market are the growing focus of enterprises on shifting their operations to digital platforms, mushrooming adoption of cloud technologies, rapid advancements in technology, and soaring spending power of various end users in the country.
Digital transformation assists enterprises in streamlining their processes and achieving improved efficiency and productivity. For example, Saudi Payments cooperated with Mastercard Inc. and IBM Corporation under the Saudi Central Bank’s supervision and developed ‘sarie’, which is an instant payment system, in April 2021. This collaboration is aimed at promoting payment and transaction innovations in the kingdom and fulfilling the aim of Saudi Payments to improve the financial ecosystem of the country via the adoption of faster payment methods and innovations in banking operations.
Furthermore, rapid technological advancements are paving the way for secure digital transaction management (DTM) solutions, which is consequently propelling the market. Digital advancements have fueled the development of advanced technologies, such as smart machines, digital currencies, and smartphones, and transformed concepts and cultures. In addition, the mobile platform is becoming highly popular for customer-facing process automation and digital transactions. As per a report published in ARAB news, mobile-based point-of-sale (POS) transactions generated nearly $10.0 billion value in Saudi Arabia in September 2021, registering an increment of 18% from the previous year.
The Saudi Arabian DTM market is classified into healthcare, banking, financial services, and insurance (BFSI), retail, and information technology (IT) and telecommunications, on the basis of industry. Out of these, the healthcare category is predicted to demonstrate the highest growth rate in the market between 2021 and 2030. This is credited to the surging adoption of DTM technologies in healthcare settings for managing the documents and records of patients digitally.
Additionally, the adoption of e-information and e-health systems is growing rapidly in hospitals and associated organizations, such as National Guard Health Affairs, medical services of university hospitals and armed forces, and the King Faisal Specialist Hospital and Research Centre (KFSH and RC). The central region dominated the Saudi Arabian DTM market in the years gone by, and this trend is expected to continue in the upcoming years as well. This will be due to the presence of numerous large BFSI companies, such as Riyad Bank, Al Rajhi, Samba Financial Group SJSC, BSF, Saudi Investment Bank, Arab National Bank, Alinma Bank, and Saudi British Bank in the region.
Hence, the demand for digital transaction management solutions will surge sharply in Saudi Arabia in the coming years, primarily because of the growing requirement for faster and more efficient transaction processes, rapid digitization of business operations, and soaring adoption of cloud technologies in the country.
