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.
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How AI is Reshaping the Future of Saudi Arabia Smart Cities Market
- AI-driven traffic management systems in Saudi smart cities reduced congestion by 35%, improving commute times and lowering carbon emissions significantly.
- Government AI initiatives support smart energy grids, cutting power waste by 25% and enhancing renewable energy integration across city infrastructures.
- AI-enabled predictive maintenance in public utilities has increased system uptime by 30%, minimizing service disruptions in major Saudi urban centers.
- Smart surveillance powered by AI analytics helps lower crime rates by 20%, boosting public safety and enabling faster emergency response.
- AI chatbots and virtual assistants handle over 60% of citizen service interactions, streamlining urban governance and improving satisfaction rates.
Saudi Arabia Smart Cities Market Trends & Drivers:
Vision 2030 is firing up smart cities like NEOM and The Line, where AI and IoT handle everything from traffic to energy with real-time tweaks that cut congestion and boost green vibes. These mega-projects pump billions into connected infrastructure, with NEOM's 95% natural preserve rule demanding zero-carbon tech that monitors water and waste smartly. Public-private deals draw global firms, turning urban headaches into smooth experiences—think drone deliveries and adaptive lighting that saves power while making daily life feel futuristic and effortless.
IoT sensors are everywhere, tracking traffic flows and utilities to slash pollution and grid strain, backed by a USD 9,490.7 million IoT market that feeds data straight to city dashboards. Smart traffic signals and parking apps ease jams in booming Riyadh, while energy meters optimize usage for buildings housing millions. This connectivity lets authorities spot issues fast, like overflowing bins or peak power needs, making cities tougher against heatwaves and growth spurts without wasting a drop.
High-speed internet hits 48.6% of Saudis online over seven hours daily, powering apps for citizen services from healthcare bookings to safety alerts that keep everyone looped in. Cloud platforms and mobile portals let folks report potholes or pay bills instantly, ramping engagement in places like Jeddah. Vision 2030's digital push ensures seamless links between services, cutting red tape and putting control in residents' hands for a more responsive, inclusive urban life.
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.
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