Saudi Arabia Smart Cities Market

The Saudi Arabia smart cities market is projected to grow from USD 5.1 billion in 2025 to USD 10.9 billion by 2030 at a CAGR of 16.3% during the forecast period.

The Kingdom of Saudi Arabia (KSA) is accelerating the adoption of smart utilities through its National Renewable Energy Program and grid modernization initiatives. These efforts support the deployment of advanced metering infrastructure, load automation, and technologies that balance renewable energy supply. Together, they align with the national target to generate 50% of electricity from renewable sources by 2030. As investment in power infrastructure increases, demand for smart utility technologies continues to rise across major urban developments.

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Technology providers and infrastructure operators support these programs by delivering energy management and grid reliability solutions. These deployments help integrate large-scale solar and wind capacity while improving visibility into grid operations. Continued government investment in energy infrastructure modernization is expected to sustain demand for smart utility solutions over the forecast period.

Various KSA established players, such as NEOM (Saudi Arabia), STC (Saudi Arabia), Huawei (China), Ericsson (Sweden), and Aramco Digital (Saudi Arabia), lead the Saudi Arabia smart cities market. These players have adopted various growth strategies, such as partnerships, agreements, collaborations, product launches/enhancements, and acquisitions, to expand their footprint in the market.

In May 2025, Cisco expanded its partnership with Saudi Arabia through a landmark initiative with HUMAIN to build the Kingdom's AI infrastructure. This multi-year effort aims to create scalable, secure, and cloud-based AI solutions, supporting Saudi Arabia's Vision 2030 and positioning it as a global AI innovation hub.

NEOM

NEOM is a Saudi-backed giga-project and development authority responsible for planning and delivering technology-driven urban developments such as The Line, Oxagon, and Trojena. As a project owner and standards-setting body, NEOM defines technical and procurement requirements for smart city deployments. These include integrated data platforms, autonomous mobility systems, renewable energy infrastructure, and digital governance frameworks. NEOM attracts global technology partners and provides large-scale testing environments for new urban solutions. Its projects influence broader smart city adoption across Saudi Arabia by demonstrating city-scale deployment models.

STC (Saudi Telecom Company)

Saudi Telecom Company (STC) is the leading telecommunications operator in Saudi Arabia and a key enabler of smart city connectivity. The company provides nationwide fiber and mobile networks, private network solutions, and managed Internet of Things (IoT) platforms for municipalities and large projects. Through partnerships with global vendors and local system integrators, STC supports city-scale sensor networks, smart parking systems, and public safety communications. Its infrastructure enables real-time data exchange and supports the deployment of digital services across urban environments.       

Market Ranking

The Saudi Arabia smart cities market is rapidly expanding and is dominated by five leading players NEOM, STC, Huawei, Ericsson, and Aramco Digital, who together command a major share of ongoing mega-project deployments across Saudi Arabia. The market is driven by Vision 2030, which accelerates large-scale investments in AI-enabled urban planning, digital twins, 5G networks, autonomous mobility, smart utilities, and next-generation city infrastructure. NEOM leads with some of the world’s most advanced city-scale digital initiatives, including The Line, Oxagon, and Trojena, which require integrated cloud, AI, and energy-management platforms. STC provides nationwide connectivity, smart-city IoT platforms, and mission-critical telecom infrastructure. Huawei and Ericsson enable 5G expansion, large IoT grids, and smart operations centers across multiple Saudi cities. As mega-city projects expand and existing cities such as Riyadh and Jeddah upgrade digital infrastructure, these players remain central to smart city deployments across the Kingdom.

Related Reports:

Saudi Arabia Smart Cities Market by Focus Area (Transportation (Roadways, Railways, Airways), Building (Residential, Commercial, Industrial), Utility (Energy, Gas, Water), Citizen Services) - Forecast to 2030

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