New York, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Overview
The Kingdom of Saudi Arabia Artificial Intelligence (AI) Market is projected to reach USD 1,973.8 million in 2024 which is further anticipated to reach USD 61,854.4 million by 2033 at a CAGR of 46.6%.
The Saudi Arabian AI market is right at the forefront of digital transformation in the Middle East, enabled by strategic governmental initiatives like Vision 2030. This includes the promotion of economic diversification, digital innovation, and global competitiveness.
Key technologies to watch are machine learning, natural language processing, and computer vision technologies that will revolutionize processes associated with automation, predictive analytics, and real-time decision-making. Applications of AI are also being applied to smart cities like NEOM, transforming urban infrastructure and citizen services.
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This will be driven by strategic partnerships with global providers of technology, increasing funding for AI-focused startups, and investments in cloud-based AI platforms. Even as it inches toward modernization, high implementation costs, data privacy, and the need for a skilled workforce remain challenges.
With a strong focus on R&D and industry-specific AI applications, Saudi Arabia is likely to become one of the leading AI hubs by 2030 and an innovation and economic driver for the region.
Important Insights
- Market Value: The Kingdom's AI market is valued at USD 1,973.8 million in 2024, projected to reach USD 61,854.4 million by 2033.
- By Offering Segment Insights: Software dominates with a 43.7% market share in 2024, driving AI adoption across various sectors in Saudi Arabia.
- By Technology Segment Insights: Machine Learning (ML) leads the market with a 36.0% share in 2024, powering predictive analytics and automation across industries.
- Key Players: Major AI players include IBM, Microsoft, Google, AWS, SAP, Oracle, Huawei, Alibaba Cloud, Cisco, and more shaping the Saudi AI ecosystem.
- Market Growth Rate: The market is expanding at a CAGR of 46.6% from 2024 to 2033, reflecting rapid AI adoption and technological innovation in Saudi Arabia.
Latest Trends
- Smart Cities and Digital Transformation: Saudi Arabia was developing AI-powered smart cities, of which NEOM is the best example where ML and IoT are being combined together for urban planning, energy optimization, and citizen engagement. Focus on digital transformation in all sectors drives up the pace of adoption of the latest state-of-the-art AI applications.
- AI-Driven Healthcare Advancements: The healthcare sector is also increasingly deploying AI in diagnostics, predictive analytics, and patient care. Collaboration with global AI companies has further fostered a development pace for advanced solutions, creating significant value propositions in better healthcare delivery and operational efficiencies.
The Kingdom of Saudi Arabia Artificial Intelligence (AI) Market: Competitive Landscape
- There is high competition within the AI market of Saudi Arabia since international names like IBM, Microsoft, and Google are highly interested and invested in locally situated projects. Hence, different collaborations with local entities like STC or Aramco will, to an extent, avail the respective nation of custom-made AI solutions related to energy, health care, and telecommunication sectors.
- SDAIA is at the heart of driving market growth by implementing strategic initiatives in AI innovation and fostering the growth of AI technologies. These initiatives will transform the Kingdom into one of the leading players in the global AI landscape, accelerating sectoral development and economic diversification.
Some of the prominent market players:
- IBM Corporation
- Microsoft Corporation
- Google LLC (Alphabet Inc.)
- Amazon Web Services (AWS)
- SAP SE
- Oracle Corporation
- Huawei Technologies Co., Ltd.
- Alibaba Cloud
- Cisco Systems, Inc.
- Accenture PLC
- STC (Saudi Telecom Company)
- Aramco (Saudi Arabian Oil Company)
- Neural Technologies
- Other Key Players
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The Kingdom of Saudi Arabia Artificial Intelligence (AI) Market Scope
| Report Highlights | Details |
| Market Size (2024) | USD 1,973.8 Mn |
| Forecast Value (2033) | USD 61,854.4 Mn |
| CAGR (2024-2033) | 46.6% |
| Historical Data | 2018 - 2023 |
| Forecast Data | 2024 - 2033 |
| Base Year | 2023 |
| Estimate Year | 2024 |
| Segments Covered | By Offerings, By Technology, By Business Function, Industry Vertical |
| Regional Coverage | The Kingdom of Saudi Arabia |
Market Analysis
Software is expected to dominate Saudi Arabia's AI market, as software provides the required interface and management of AI technologies. Advanced AI frameworks, such as TensorFlow, and SaaS platforms drive down costs and allow for highly scalable deployments.
These solutions find wide applications across industries, from improving diagnosis in healthcare to managing supply chains and inventories in logistics. AI software enhances operational efficiency, drives innovation, and improves customer experiences by offering flexibility, scalability, and ease of use.
Therefore, software continues to lead the market growth and adoption in the Kingdom's AI ecosystem.
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The Kingdom of Saudi Arabia Artificial Intelligence (AI) Market Segmentation
By Offerings
- Software
- Hardware
- Services
By Technology
- Machine Learning
- Natural Language Processing (NLP)
- Computer Vision
- Context-Aware Artificial Intelligence (CAAI)
By Business Function
- Marketing & Sales
- Human Resources
- Finance & Accounting
- Operations
- Cybersecurity
By Industry Vertical
- BFSI
- Retail & E-commerce
- Manufacturing
- Government & Defense
- Healthcare & Life Sciences
- Telecommunication
- Energy & Utilities
- Automotive, Transportation & Logistics
- Agriculture
- IT/ITES
- Media & Entertainment
- Other Industry Verticals
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Growth Drivers
- The establishment of AI-powered smart cities like NEOM places Saudi Arabia at the forefront in showcasing the use of ML and IoT in urban design and energy efficiency for citizens' involvement. A digital transformation drive across different industries speeds up the application of various advanced AI techniques.
- Diagnostics, predictive analytics, and other related care activities are increasingly deploying AI into the healthcare industry. Because of collaboration with global companies in the development of leading solutions and operational efficiencies in healthcare see great improvement.
Restraints
- Saudi Arabia has also established its first smart city, NEOM, showcasing the implementation of machine learning and IoT in designing and planning the city with proper energy use and for keeping citizens informed. Indeed, the high priority of digitization across sectors contributes to rapid advances in using state-of-the-art AI applications.
- The healthcare industry is increasingly deploying AI in diagnostics, predictive analytics, and patient care. Collaboration with global AI firms fosters the creation of advanced solutions that create significant improvements in healthcare delivery and operational efficiencies.
Growth Opportunities
- Saudi Arabia is building AI-driven smart cities, most importantly NEOM, which integrates ML and IoT in city planning and optimization of energy use, reaching out for citizen engagement. The focus on digital transformation across sectors accelerates the pace of adopting advanced AI applications.
- The healthcare sector is one of the biggest adopters of AI in diagnostics, predictive analytics, and the care of patients. Such partnerships with global AI companies help create complex solutions that greatly enhance service delivery and operational efficiencies for healthcare.
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- Data Center Market is projected to reach USD 409.3 billion in 2024 and grow at a compound annual growth rate of 6.8% from there until 2033 to reach a value of USD 736.9 billion.
- Insurtech Market is projected to reach USD 27.8 billion in 2024 and grow at a compound annual growth rate of 27.0% from there until 2033 to reach a value of USD 239.2 billion.
- Sensor Market is projected to reach USD 260.6 billion in 2024 and grow at a compound annual growth rate of 9.1% from there until 2033 to reach a value of USD 572.5 billion.
- Smart Parking Systems Market is projected to reach USD 9.8 billion in 2024 and grow at a compound annual growth rate of 23.0% from there until 2033 to reach a value of USD 63.0 billion.
- Video Streaming Market is projected to reach USD 137.9 billion in 2024 and grow at a compound annual growth rate of 22.3% from there until 2033 to reach a value of USD 843.0 billion.
- Pharmaceutical Packaging Market size is expected to reach a value of USD 153.7 billion in 2024, and it is further anticipated to reach a market value of USD 583.5 billion by 2033 at a CAGR of 16.0%.
Recent Developments in the Kingdom of Saudi Arabia Artificial Intelligence (AI) Market
- November 2024: SDAIA announced a partnership with a leading global AI firm to develop AI-powered smart city solutions for NEOM.
- July 2024: Microsoft launched a cloud-based AI platform targeting healthcare and logistics in Saudi Arabia.
- March 2024: Google Cloud expanded its operations in Saudi Arabia, offering AI tools for predictive analytics in the BFSI sector.
- December 2023: STC implemented an AI-based customer service platform to improve response times and personalization.
- August 2023: Aramco adopted AI for predictive maintenance, enhancing operational efficiency in its facilities.
- May 2023: Vision 2030 announced funding for AI startups in sectors like agriculture and manufacturing, driving innovation.
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