Saudi Arabia Smart Cities Market Size, Share Analysis, Trends & Outlook 2025-2033
Saudi Arabia Smart Cities Market Overview
Market Size in 2024: USD 13,209.6 Million
Market Size in 2033: USD 29,228.7 Million
Market Growth Rate 2025-2033: 9.2%
According to IMARC Group's latest research publication, "Saudi Arabia Smart Cities Market Size, Share, Trends and Forecast by Focus Area, Application, and Region, 2025-2033", The Saudi Arabia smart cities market size reached USD 13,209.6 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 29,228.7 Million by 2033, exhibiting a growth rate (CAGR) of 9.2% during 2025-2033.
How AI is Reshaping the Future of Saudi Arabia Smart Cities Market
- AI integration in Saudi smart cities enhances traffic management, reducing congestion by up to 30% through real-time data analytics and intelligent routing systems.
- The government’s SDAIA leads AI initiatives that power urban digital twins, monitoring city infrastructure across thousands of square kilometers to improve resource allocation and safety.
- NEOM employs AI-driven energy optimization, cutting power consumption by 25% with smart grids that balance renewable energy and demand efficiently across the city.
- AI-powered surveillance and emergency response systems in Riyadh and Jeddah increase public safety metrics, allowing faster detection and incident management across urban areas.
- AI-enabled smart services like e-governance and predictive maintenance streamline operations, enhance citizen engagement, and reduce municipal costs by up to 20% in multiple Saudi cities.
Download a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-smart-cities-market/requestsample
Saudi Arabia Smart Cities Market Trends & Drivers:
Saudi Arabia’s rapid urbanization and population growth are key factors driving the smart cities market growth. With over 85% of the population living in urban areas, there’s an escalating demand for efficient transportation, energy management, and public safety systems. The government’s Vision 2030 initiative emphasizes smart urban solutions to enhance living standards, reduce operational costs, and optimize resources. Projects like NEOM and The Line exemplify this push, integrating AI, IoT, and renewable energy to create sustainable, connected cities that attract both local and international investors.
Government-led initiatives and massive investments are fueling Saudi Arabia’s smart city expansion. Over USD 500 billion has been allocated to smart infrastructure projects under Vision 2030, focusing on digital transformation, public safety, and integrated citizen services. Public-private partnerships are accelerating deployments of advanced surveillance, digital governance, and smart healthcare and education platforms. Regulatory support by the Saudi Data and Artificial Intelligence Authority (SDAIA) ensures high standards, promoting scalable, tech-driven urban ecosystems aligned with economic diversification goals.
The adoption of IoT and AI technologies is an emerging trend revolutionizing city management across Saudi Arabia. Digital twin platforms covering 6,800 square kilometers in Mecca, Medina, and Jeddah enable real-time monitoring and predictive analytics for urban planning, disaster management, and resource optimization. These technologies allow autonomous city operations, improving traffic flow, energy efficiency, and public safety. The integration of AI-driven smart citizen services dominates market revenue, showcasing how technology elevates urban quality of life, making Saudi cities models of intelligent, sustainable development.
Saudi Arabia Smart Cities Industry Segmentation:
The report has segmented the market into the following categories:
Focus Area Insights:
- Smart Transportation
- Smart Ticketing
- Traffic Management System
- Passenger Information Management System
- Freight Information System
- Connected Vehicles
- Others
- Smart Buildings
- Building Energy Optimization
- Emergency Management System
- Parking Management System
- Others
- Smart Utilities
- Advanced Metering Infrastructure
- Distribution Management System
- Substation Automation
- Others
- Smart Citizen Services
- Smart Education
- Smart Healthcare
- Smart Public Safety
- Smart Street Lighting
- Others
Regional Analysis:
- 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 Smart Cities Market
- June 2025: Naver deployed digital twin technology across Mecca, Medina, and Jeddah, enhancing urban planning and predictive infrastructure management over 6,800 square kilometers.
- May 2025: Saudi Arabia signed an MoU with Sidel to localize advanced food packaging tech within smart city developments, aiding industrial growth and innovation.
- January 2025: King Abdullah Financial District unveiled AI-driven smart city infrastructure improving traffic flow, energy management, and public safety through integrated sensor networks.
Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.
About Us:
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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