Saudi Arabia 5G Chipset Market: Deployment Growth, Device Adoption & Technology Innovation

The Saudi Arabia 5G chipset market size reached USD 95.9 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 966.1 Million by 2034, exhibiting a growth rate of 29.26% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia 5G Chipset Market

• Real-Time Industrial Monitoring: AI-powered chipsets enable predictive maintenance in oil and gas facilities, analyzing sensor data at edge devices to prevent downtime and optimize operations across remote industrial sites.

• Smart City Intelligence: Machine learning algorithms embedded in 5G chipsets process traffic patterns, energy consumption, and public safety data locally in NEOM and smart urban projects, reducing latency for instant responses.

• Edge Computing Optimization: AI-enabled chipsets from Qualcomm's QCM8550 and QCM6490 processors support on-device AI inference for industrial IoT applications, eliminating cloud dependency while enhancing data security and processing speed.

• Autonomous System Support: Advanced neural processing units within 5G chipsets facilitate autonomous vehicle navigation, drone operations, and robotics deployment by processing complex AI models locally with ultra-low latency for safer operations.

• Enhanced Connectivity Intelligence: AI algorithms optimize network slicing and spectrum management in 5G chipsets, dynamically allocating resources based on real-time demand patterns across industrial, consumer, and enterprise segments.

How Vision 2030 is Revolutionizing Saudi Arabia 5G Chipset Industry

Vision 2030 has positioned digital infrastructure as the backbone of Saudi Arabia's economic transformation, driving unprecedented demand for advanced 5G chipsets across industrial, consumer, and smart city applications. The government allocated over 500 billion dollars toward megaprojects like NEOM and The Line, with 75% of NEOM's infrastructure designed around 5G integration for AI systems, automated transportation, and real-time IoT deployments. This ambitious push created specialized requirements for chipsets supporting 450MHz spectrum, multi-mode capabilities, and ruggedized designs for harsh environments. Aramco Digital's nationwide industrial network covering 50 industrial zones operates independently from public infrastructure, utilizing Qualcomm's specialized processors for mission-critical communications in energy, manufacturing, and defense sectors. The Saudi Telecom Company expanded 5G coverage to 75 cities, deploying 400G routing infrastructure that increased network capacity by 1,340% while reducing power consumption by 87%, establishing the technical foundation for chipset-powered digital transformation across healthcare, logistics, and smart manufacturing aligned with Vision 2030's diversification goals.

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Saudi Arabia 5G Chipset Market Trends & Drivers

The rapid expansion of industrial IoT and edge computing applications is transforming chipset requirements across Saudi Arabia's energy, manufacturing, and infrastructure sectors. Aramco Digital launched a nationwide 450MHz network supporting over 50 industrial zones, requiring specialized chipsets with extended range, deep building penetration, and AI capabilities for predictive maintenance, asset monitoring, and environmental sensing. Qualcomm's QCM8550 and QCM6490 processors, announced at LEAP 2025, deliver native 450MHz support combined with on-device AI processing for industrial handhelds, ruggedized smartphones, and autonomous systems. The energy sector particularly drives demand, with digital oilfields deploying thousands of connected sensors requiring chipsets that deliver reliable connectivity in extreme temperatures while supporting real-time analytics. Private 5G networks in industrial parks and manufacturing facilities need chipsets enabling network slicing, ultra-reliable low-latency communications, and secure edge processing, pushing vendors toward application-specific integrated circuits and field-programmable gate arrays optimized for industrial automation.

Smart city megaprojects and digital transformation initiatives across healthcare, transportation, and public services are accelerating chipset adoption beyond traditional telecommunications. NEOM's development requires millions of IoT devices powered by 5G chipsets supporting real-time data processing for traffic management, energy grids, and integrated public services. The healthcare sector implements telemedicine platforms and remote patient monitoring systems, with programs like Seha Virtual Hospital driving demand for chipsets enabling high-definition video streaming and low-latency diagnostics. Transportation infrastructure modernization for intelligent systems, autonomous vehicles, and connected logistics operations requires chipsets supporting both sub-6GHz for coverage and millimeter-wave technology for ultra-high speeds. The government's 2 billion dollar allocation for digital transformation under Vision 2030, combined with the IoT market's projected growth to 15 billion dollars, creates sustained demand for multi-mode chipsets that seamlessly transition between frequencies while optimizing power consumption for battery-powered devices across urban and remote deployments.

Localization efforts and semiconductor ecosystem development are reshaping the chipset supply chain and creating opportunities for domestic production and testing capabilities. Public-private partnerships support capacity-building in semiconductor packaging, chip design validation, and advanced testing laboratories within Saudi Arabia to reduce import dependency and strengthen supply chain resilience. The "Design in Saudi Arabia" initiative, launched by Qualcomm and Aramco Digital with the Research, Development, and Innovation Authority, provides technical support, business coaching, and intellectual property guidance to AI and IoT startups developing chipset-powered solutions. Major telecommunications operators including STC, Mobily, and Zain compete aggressively on 5G coverage and performance, with STC achieving 94% network availability and expanding to 75 cities, driving continuous demand for latest-generation chipsets supporting standalone architecture, carrier aggregation, and massive MIMO. This competitive environment, combined with spectrum allocations in the 3.8-4.0GHz band and the 600MHz band for rural coverage, ensures sustained chipset procurement for infrastructure upgrades, enterprise solutions, and consumer devices across all market segments.

Saudi Arabia 5G Chipset Market Industry Segmentation

The report has segmented the market into the following categories:

Chipset Type Insights:

• Application-specific Integrated Circuits (ASIC)
• Radio Frequency Integrated Circuit (RFIC)
• Millimeter Wave Technology Chips
• Field-programmable Gate Array (FPGA)
• Operational Frequency Insights:
• Sub 6 GHz
• Between 26 and 39 GHz
• Above 39 GHz

End User Insights:

• Consumer Electronics
• Industrial Automation
• Automotive and Transportation
• Energy and Utilities
• Healthcare
• Retail
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia 5G Chipset Market

• January 2025: GCT Semiconductor participated in the Aramco Digital and 450 MHz Alliance event in Dhahran, discussing innovations in private networks and 450MHz-enabled 5G chipsets designed for critical infrastructure with AI and machine learning integration to optimize device performance.

• February 2025: Qualcomm Technologies and Aramco Digital announced at LEAP 2025 the world's first AI-enabled industrial 5G smartphones with native 450MHz support, powered by QCM8550 and QCM6490 processors for enhanced industrial IoT connectivity and edge computing applications.

• March 2025: Saudi Telecom Company disclosed expanding 5G services to 75 cities with Juniper Networks' 400G routing infrastructure, achieving 1,340% capacity increase and 87% power consumption reduction supporting next-generation chipset deployments aligned with Vision 2030 objectives.

• May 2025: Qualcomm and Aramco Digital formalized strategic collaboration at the Saudi-US Investment Forum to develop, deploy, and commercialize edge AI industrial IoT technologies, leveraging 450MHz 5G network for predictive maintenance and worker assistance applications.

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