Outlook 2025: AI and Cybersecurity Will Increase Need for Servers and High-End PCs

Antoine Harb, the Team Leader for Middle East at Kingston Technology, says key drivers for his company’s success were SSDs and DRAM products, supported by strategic channel partnerships

How did the industry and your company fare in 2024, and what were the key highlights?
Kingston Technology performed well in 2024, especially compared to other vendors who struggled with product sales. While the Middle East faced a challenging first half of the year, a significant recovery in the latter half, especially in August and November, marked a turnaround. Key drivers of success were our SSDs and DRAM products, supported by strategic channel partnerships.

What opportunities do you foresee for 2025, and how do you plan to leverage them?
The outlook for 2025 remains uncertain, with potential changes influenced by the US election and possible new tariffs, given our status as a US-based company. However, we anticipate strong demand growth in server integration, driven by the increasing need for AI and cybersecurity. At the same time, demand for notebooks and PCs may experience slower growth.

What major challenges did you encounter in 2024, and how did you address them?
The main challenge we faced was related to pricing strategy. Some of our key competitors, particularly those new to the component business, adopted aggressive pricing tactics, offering products at cost or even below cost to capture market share. In contrast, Kingston, as a private company, chose to take a more cautious approach, closely monitoring the situation, as maintaining profitability is crucial for survival in such a competitive market.

Despite rising chipset prices and increased finished goods costs, we stayed resilient by leveraging our private ownership structure, which allows us to focus on sustainable, long-term growth. These challenges reinforced our commitment to delivering high-value, reliable solutions to our customers.

Which emerging technologies do you believe will be in high demand in 2025, and why?
As demand for AI and cybersecurity continues to grow, there will be an increasing need for servers and high-end PCs. Consequently, products and components related to the enterprise sector are expected to see significant growth. With the rising demand for faster performance, the need for SSDs and DRAMs will also increase. Kingston is well-positioned to benefit from this trend, as we specialize in this sector and are continually expanding our product offerings to meet these growing demands.

What will be your primary focus areas and strategic priorities for 2025?
Our primary focus in 2025 is to address the surging demand for AI and server solutions in data centres. With the launch of new products in December 2024 and more scheduled for Q1 2025, we aim to expand our presence in this growing market segment. Additionally, we remain dedicated to supporting our channel partners by providing reliable, high-quality products and ensuring seamless day-to-day operations. This balanced strategy will help us achieve both immediate goals and long-term growth.

Are there plans to explore new markets or introduce new products/applications to your portfolio in 2025?
As the situation stabilizes in certain countries that previously faced challenges due to economic or geopolitical factors, our focus will shift to revitalizing these markets. At the same time, we will continue to prioritize strong markets like the UAE and Saudi Arabia, where we expect significant demand growth driven by the adoption of the latest technologies and the increasing emphasis on cybersecurity.