Press Release

Saudi Arabia Smart Cities Market is Expected to Register a 18.64% CAGR Through 2030

Saudi Arabia’s smart cities market is led by government-driven initiatives focused on digital infrastructure, sustainability, and urban innovation under Vision 2030, during the forecast period.


According to TechSci Research report, “Saudi Arabia Smart Cities Market – By Region, Competition, Forecast and Opportunities, 2020-2030F”, Saudi Arabia Smart Cities Market was valued at USD 6.72 Billion in 2024 and is expected to reach USD 18.74 Billion by 2030 with a CAGR of 18.64% during the forecast period.

Rapid urbanization is another major driver accelerating the Saudi Arabia Smart Cities Market. With more than 80 percent of the population residing in urban areas, cities are under pressure to accommodate growing populations while maintaining quality of life. Smart mobility solutions—such as intelligent traffic management, electric vehicle infrastructure, ride-sharing platforms, and integrated public transport—are helping reduce congestion, emissions, and commute times.

Cities like Riyadh and Jeddah are investing in autonomous transport networks, smart parking, and multimodal transit systems to meet increasing demand. These solutions not only improve the commuter experience but also enhance economic productivity by reducing time lost in traffic. Mobility-as-a-service platforms are also gaining momentum, enabling personalized, on-demand travel that fits the digital lifestyle of Saudi’s urban dwellers. According to General Authority for Statistics data, Saudi Arabia’s urban population exceeded 35 million in 2024, accounting for over 84 percent of its total population. This demographic concentration is driving high demand for intelligent transportation and infrastructure management, directly fueling the growth of the smart cities market.


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The fastest growing segment in the Saudi Arabia Smart Cities Market is Smart Buildings & Infrastructure. This segment is expanding rapidly due to the increasing emphasis on energy-efficient and technology-driven urban development. As Saudi Arabia advances its Vision 2030 goals, there is a strong focus on creating sustainable and connected urban environments, which has accelerated investments in smart building technologies and infrastructure solutions.

Smart Buildings & Infrastructure includes advanced systems such as intelligent lighting, HVAC controls, security, and building management platforms. These innovations not only enhance operational efficiency but also improve occupant comfort and safety. The integration of IoT devices and AI-powered analytics allows for real-time monitoring and proactive management, making buildings more adaptive to environmental changes and user requirements. This approach aligns with the country’s efforts to reduce energy consumption and promote greener cities.

Government initiatives and public-private partnerships further fuel growth in this segment. High-profile projects like NEOM exemplify the commitment to developing cutting-edge infrastructure that incorporates renewable energy and smart technology. As a result, Smart Buildings & Infrastructure is set to remain the leading driver of growth within Saudi Arabia’s smart city ecosystem.

Western Saudi Arabia has rapidly emerged as the fastest-growing region in the Kingdom’s Smart Cities market, propelled by significant government initiatives and large-scale urban development projects. The region benefits from major investments aimed at transforming cities like Jeddah and Tabuk into advanced smart urban centers. These projects emphasize integrating cutting-edge technologies such as Internet of Things devices, artificial intelligence, and sustainable infrastructure, aligning closely with Saudi Arabia’s Vision 2030 goals.

Key developments, including the NEOM city and Jeddah Economic City, are central to this growth. NEOM, a futuristic mega-city, focuses heavily on smart infrastructure and eco-friendly solutions, while Jeddah Economic City aims to become a hub for business and innovation powered by smart technologies. These efforts have attracted both domestic and international investors, accelerating adoption of smart city solutions and driving the rapid expansion of digital services, smart utilities, and intelligent transportation networks throughout the Western region. This momentum positions Western Saudi Arabia as a critical growth corridor for the smart cities market over the coming years.


Major companies operating in the Saudi Arabia Smart Cities Market are:

  • Saudi Telecom Company
  • NEOM Company
  • Siemens AG
  • Honeywell International Inc.
  • Schneider Electric SE
  • Cisco Systems, Inc.
  • IBM Corporation
  • Huawei Technologies Co., Ltd.


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Saudi Arabia Smart Cities Market is set for rapid growth, driven by the country’s Vision 2030 goals to diversify the economy and improve urban living. Investments in advanced technologies like IoT, AI, and big data are fueling the development of sustainable infrastructure, smart transportation, and energy-efficient systems. Major projects like NEOM and The Line showcase this futuristic vision, aiming to create highly connected, eco-friendly urban spaces. Increasing urbanization and government support will accelerate market expansion, making Saudi Arabia a global leader in smart city innovations, enhancing quality of life and generating significant economic opportunities.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

Saudi Arabia Smart Cities Market By Component (IoT Devices & Sensors, Communication & Network Infrastructure, Cloud & Edge Computing, AI & Analytics, Others), By Application (Smart Mobility & Transportation, Smart Utilities/Energy, Public Safety & Surveillance, Smart Buildings & Infrastructure, Environmental Monitoring, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Saudi Arabia Smart Cities Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Smart Cities Market.

 

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