Saudi Arabia Internet of Things (IoT) Market

Saudi Arabia Internet of Things Market size reached USD 2.3 billion in 2023 and forecast to touch a value of USD 5.7 billion in 2031, and the market is estimated to grow at a double digit CAGR of 12.1% from 2024-2031, owing to growing digital transformation efforts including Smart City initiatives coupled with the increasing IoT integration in various sectors.

Major Market Drivers and Trends

Saudi Arabia IoT market size growth is largely fueled by the rise in digital transformation strategies that align with the objectives of Saudi Vision 2030. Government initiatives including Smart City developments and industrial IoT deployments in the oil and gas sector are major factors driving market growth.

The market is seeing significant growth due to Saudi Arabia’s strategic focus on smart city initiatives like NEOM and the ongoing Vision 2030 plans in Riyadh. The projects prioritize sustainable city growth as it utilizes IoT technologies to optimize transportation systems and energy use. With rapid urban development and strong government backing in smart technologies, Saudi Arabia has seen fast implementation of IoT which further drives market growth.

Furthermore the ongoing 5G infrastructure deployment along with rising need for IoT technologies in healthcare and manufacturing is contributing significantly to Saudi Arabia Internet of Things (IoT) market growth. The push by the government to integrate IoT technologies into healthcare significantly influences the market. These supports aim to improve patient outcomes by minimizing hospital readmissions and optimizing care processes which leads to greater efficiency in healthcare delivery across the country.

Another emerging trend in the KSA IoT market is the rising IoT implementation to enhance agriculture and ensure food security. In its efforts to guarantee a stable food supply, the country is seeing a rise in the use of precision agriculture. To improve crop yields and manage resources more efficiently IoT sensors and analytics are crucial. By continuously tracking soil or crop health farmers can make informed decisions based on data to increase yields and productivity.

The oil and gas sector in the country is also leveraging Industrial IoT to optimize operations while ensuring higher safety standards. IoT integration has allowed the sector to reduce downtime and improve resource efficiency which significantly elevates its performance levels. Manufacturing is also benefiting from IoT technologies such as smart machinery along with automation which improve productivity and enable more flexible operations.

Based on technology, the services segment is anticipated to capture the largest revenue share. The rising need for automation in sectors like manufacturing and logistics is driving increased demand in the segment. Furthermore, IoT device integration in smart cities is transforming urban landscapes by establishing interconnected systems that drive greater efficiency and promote sustainability. The device hardware segment also grows rapidly due to its essential function in the IoT ecosystem. IoT components such as sensors and connected devices are essential for delivering IoT capabilities across industries including manufacturing and utilities. The Industrial IoT growth in industries such as oil & gas highlights the importance of hardware in bridging the gap between physical devices and digital systems. As 5G technology becomes more widespread the need for advanced IoT hardware to enable fast data communication has also increased.

Based on end use the manufacturing segment is seeing substantial growth. The industrial sector in the country is rapidly evolving into a global production hub fueled by the Vision 2030 objectives with more than 11,000 factories currently in operation. The industrial environment is also undergoing a transformation which is centered around diversification and sustainable development. The growing focus on the Fourth Industrial Revolution in Saudi Arabia is motivating the adoption of digital technologies in its manufacturing industries which aims to convert traditional sectors into smart and productive systems. The manufacturing sector is growing as IoT data analytics and sensors facilitate predictive maintenance which leads to better production efficiency while minimizing downtime. It also enables automation and remote monitoring which improves safety while streamlining operations. This shift is increasing need for IoT solutions which inspire new advancement in industrial digitalization from technology providers.

Top Market Players

Various notable players operating in the Saudi Arabia Internet of Things market include IBM Corporation, Intel Corporation, ZTE Corporation, Huawei Technologies Co. Ltd., Oracle Corporation, Cisco Systems Inc., Honeywell International Inc., STC and Siemens among others. Major players in the market are taking the lead through robust partnerships with industrial and governmental sectors to promote digital transformation. These companies are central to offering IoT solutions in various sectors from smart cities to healthcare. This highlights the considerable impact these companies have on driving market growth.

Key Developments

• • In 2024 Qualcomm launched sophisticated WiFi and IoT solutions tailored to industrial applications which marks a major development in the IoT industry. By introducing these innovations Qualcomm seeks to drive transformations in fields such as automotive technologies and robotics.
  • In 2023 Siemens and DETASAD have joined forces to introduce Industrial IoT as a service platform in Saudi Arabia.
  • In 2023 Disrupt X signed a strategic agreement with ABM which is part of Olayan Saudi Holding Company to provide IoT smart business solutions for its clients in the Saudi Arabia.
  • In 2023, IoT Squared signed an MoU with OQ Technology for IoT connectivity using 5G protocol. OQ Technology will provide IoT connectivity products and services to IoT Squared and provide technical support for its products and services. In addition, both the companies planned to identify target markets that need satellite IoT services across the Saudi Arabia and to provide necessary solutions.
  • In 2023, China Telecom Global signed an MoU with STC Group of Saudi Arabia to strengthen the IoT industry in the kingdom. The companies aimed to enable the advancement of connected transportation and vehicles in the next generation by using their IoT services and expertise.

Segments covered in the Report:

The Saudi Arabia IoT Market has been segmented on the basis of Category and End-Use. Based on the category, the market is segmented into device hardware, services, software solutions, and network connectivity. Based on the end-use, the market is segmented into manufacturing, transportation, retail, utilities, government, healthcare and others.

Market Segmentation

Saudi Arabia IoT Market by Category

• • Device Hardware
  • Services
  • Software Solutions
  • Network Connectivity

Saudi Arabia IoT Market by End-Use

• • Manufacturing
  • Transportation
  • Retail
  • Utilities
  • Government
  • Healthcare
  • Others

Leading market players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • IBM Corporation
  • Intel Corporation
  • ZTE Corporation
  • Huawei Technologies Co. Ltd.
  • Oracle Corporation
  • Cisco Systems Inc.
  • Honeywell International Inc.
  • STC
  • SAP Saudi Arabia Software Services Co. Ltd.
  • Microsoft Saudi Arabia
  • Siemens