Unlocking Growth: Saudi Arabia Internet of Things Market Trends & Forecast 2025-2033

Saudi Arabia Internet of Things Market Overview

Market Size in 2024: USD 9,490.7 Million

Market Size in 2033: USD 28,284.2 Million

Market Growth Rate 2025-2033: 12.90%

According to IMARC Group's latest research publication, "Saudi Arabia Internet of Things Market Size, Share, Trends and Forecast by Component, Application, Vertical, and Region, 2025-2033", The Saudi Arabia internet of things market size reached USD 9,490.7 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 28,284.2 Million by 2033, exhibiting a growth rate (CAGR) of 12.90% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Internet of Things Market

• AI is supercharging IoT in Saudi smart cities via Vision 2030, with ICT spending topping $10 billion to make urban systems smarter and more connected.
• Around 50% of deep tech startups in Saudi focus on AI and IoT, fueling innovations that streamline operations across various sectors effortlessly.
• The government's $100 billion AI initiative is transforming IoT, enabling seamless integrations in energy and healthcare for better efficiency.
• In oil and gas, AI-driven IoT handles predictive maintenance, reducing downtime with real-time data and boosting overall sector performance.
• Saudi firms are pouring $76.5 million into generative AI, enhancing IoT devices with advanced analytics for more personalized user experiences.

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Saudi Arabia Internet of Things Market Trends & Drivers:

One major catalyst propelling the IoT market's growth in Saudi Arabia stems from the government's comprehensive smart city development strategy under Vision 2030. The NEOM megaproject represents the world's most ambitious smart city initiative, requiring extensive IoT infrastructure for everything from traffic management to environmental monitoring and citizen services. The Saudi Data and Artificial Intelligence Authority (SDAIA) is spearheading nationwide IoT adoption across government sectors, implementing connected solutions for public transportation, utilities management, and digital government services. The Kingdom's investment in 5G networks covering 77% of the country provides the essential connectivity infrastructure for IoT devices to operate at scale. Smart city projects across major urban centers are creating demand for intelligent sensors, connected infrastructure, and automated systems that enhance quality of life while optimizing resource utilization.

Another significant driver is the rapid digital transformation of Saudi Arabia's industrial sectors, particularly oil and gas, manufacturing, and utilities. Industrial IoT applications are revolutionizing operational efficiency through predictive maintenance systems, real-time equipment monitoring, and automated safety protocols. The energy sector's adoption of smart grid technologies and connected utilities is reducing operational costs while improving reliability and sustainability. Healthcare institutions are implementing IoT solutions for patient monitoring, asset tracking, and integrated medical device management, especially accelerated by post-pandemic digital health initiatives. The market's projected growth to USD 8.2 billion reflects this cross-industry adoption, with organizations recognizing IoT as fundamental for competitive advantage and operational excellence in an increasingly connected economy.

Corporate investments and strategic partnerships are fundamentally reshaping Saudi Arabia's IoT ecosystem, making advanced connected technologies more accessible across all sectors. Major global technology companies are establishing regional IoT development centers and forming partnerships with Saudi entities to create localized solutions for specific market needs. The government's focus on building domestic technological capabilities through educational initiatives and research partnerships is creating a skilled workforce capable of developing and deploying sophisticated IoT applications. Public-private partnerships are accelerating smart infrastructure deployment, while international collaborations bring cutting-edge IoT innovations to support the Kingdom's ambitious digital transformation goals.

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Saudi Arabia Internet of Things Industry Segmentation:

The report has segmented the market into the following categories:

Component Insights:

• Hardware
• Software
• Services
• Connectivity

Application Insights:

• Smart Home
• Smart Wearables
• Smart Cities
• Smart Grid
• IoT Industrial Internet
• IoT Connected Cars
• IoT Connected Healthcare
• Others

Vertical Insights:

• Healthcare
• Energy
• Public and Services
• Transportation
• Retail
• Individuals
• 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 Internet of Things Market

• 2025 August: NEOM announces deployment of comprehensive IoT infrastructure across Phase 1 development, integrating over 500,000 connected devices for smart city operations and citizen services.
• 2025 July: Saudi Aramco expands Industrial IoT implementation across refineries and production facilities, improving operational efficiency and predictive maintenance capabilities by 35%.
• 2025 May: Healthcare sector accelerates IoT adoption with launch of national connected health initiative, enabling remote patient monitoring and integrated medical device management across Kingdom hospitals.

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