Saudi Arabia Smart Cities Market worth $10.9 billion by 2030
The report "Saudi Arabia Smart Cities Market by Focus Area (Transportation (Roadways, Railways, Airways), Buildings (Residential, Commercial, Industrial), Utilities (Energy, Gas, Water), Citizen Services) - Forecast to 2030" is projected to grow from USD 5.1 billion in 2025 and to reach USD 10.9 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 16.3% during the forecast period.
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Vision 2030 continues to act as the primary growth driver for smart city adoption in the Kingdom of Saudi Arabia (KSA). Government programs aim to improve digital service delivery across cities through cloud-based platforms, nationwide connectivity, and data-driven systems. Initiatives led by the Ministry of Communications and Information Technology (MCIT), the Digital Government Authority (DGA), and the Saudi Data and Artificial Intelligence Authority (SDAIA) are accelerating smart city implementation across the Kingdom. These programs support the rollout of e-government services, digital identity systems, and automated city platforms. Investments in 5G network expansion by Saudi Telecom Company (STC), Mobily, and Zain, along with national targets for smart meter deployment and utility digitalization, are strengthening the foundation for connected city services. This centralized approach supports large-scale deployment of smart mobility, public safety, and digital public service platforms across Saudi cities.
“By smart building solution, the security and emergency management segment is expected to hold the largest market size.”
Security and emergency management solutions are expected to account for the largest share of the smart buildings segment in Saudi Arabia. This is driven by the Kingdom’s focus on large commercial districts, giga-projects, and stringent safety standards. Major developments such as NEOM, Diriyah, and large mixed-use districts are being planned with security embedded from the early design stage. These projects integrate surveillance systems, access control, secure building networks, and fire and life safety solutions as part of core building infrastructure. Authorities increasingly require centralized monitoring of alarms and evacuation systems, as well as integration with city-level emergency operations centers. Demand is further supported by tourism growth, mega-events, and large public gatherings, where reliable and coordinated safety systems are a priority. As a result, security and emergency-management platforms remain among the highest-value smart building investments in the Kingdom.
“Smart education citizen services segment is expected to have the highest growth rate during the forecast period.”
The smart education citizen services segment is expected to record the fastest growth during the forecast period. Growth is supported by focused government programs, expanded deployment of digital learning platforms, and rising demand for remote and blended education models. These initiatives align Vision 2030’s human capital objectives with national digital transformation efforts. Cloud-based learning platforms, education applications, Artificial Intelligence–supported tutoring tools, and learning management systems are being introduced across schools and universities. Public funding for education, combined with targeted strategies for e-learning and education technology, is supporting increased adoption by both local and international solution providers. This segment continues to gain momentum as digital education becomes a core component of national development plans.
The report profiles key players, such as Saudi Telecom Company (STC) (Saudi Arabia), Mobily (Saudi Arabia), Zain KSA (Saudi Arabia), NEOM Company (Saudi Arabia), Saudi Aramco (Saudi Arabia), Saudi Electricity Company – SEC (Saudi Arabia), Elm Company (Saudi Arabia), NourNet (Saudi Arabia), Equinix (US), Digital Realty (US), Gulf Data Hub (UAE), Cisco Systems (US), Siemens AG (Germany), Schneider Electric (France), Honeywell (US), Ericsson (Sweden), Huawei (China), IBM (US), Microsoft (US), Accenture (Ireland), and SAP (Germany).
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