Saudi Arabia Construction Market Size to Reach USD 135.6 Billion by 2033, CAGR of 3.7%

Saudi Arabia Construction Market Overview

Market Size in 2024: USD 97.8 Billion

Market Size in 2033: USD 135.6 Billion

Market Growth Rate 2025-2033: 3.7%

According to IMARC Group's latest research publication, "Saudi Arabia Construction Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Saudi Arabia construction market size was valued at USD 97.8 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 135.6 Billion by 2033, exhibiting a CAGR of 3.7% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Construction Market

● Smart Building Information Modeling (BIM) and Digital Design: AI-powered BIM systems are revolutionizing construction planning and design processes by providing intelligent 3D modeling, automated clash detection, and optimized resource allocation, enabling construction companies to streamline collaboration between stakeholders, minimize errors, and enhance project efficiency across mega-projects like NEOM, Qiddiya, and The Red Sea Project.

● Automated Construction Monitoring and Safety Management: AI-integrated drone technology, robotics, and computer vision systems are transforming construction site monitoring by providing real-time progress tracking, automated safety inspections, and predictive risk assessment, reducing labor costs and ensuring compliance with safety standards while supporting Vision 2030's construction quality and worker safety objectives.

● Intelligent Project Management and Resource Optimization: AI-driven project management platforms are optimizing construction timelines, material procurement, and workforce allocation through predictive analytics and machine learning algorithms, enabling contractors to reduce costs, improve delivery schedules, and enhance operational efficiency across residential, commercial, industrial, and infrastructure construction projects.

● Smart Infrastructure and IoT Integration: AI-enabled IoT sensors and smart building technologies are revolutionizing construction practices by providing intelligent environmental monitoring, energy optimization, and automated building systems, supporting Saudi Arabia's focus on green building practices and sustainable construction methods aligned with environmental regulations and LEED certification requirements.

● Predictive Maintenance and Asset Management: AI-powered analytics are transforming construction equipment management and facility maintenance through predictive algorithms that forecast equipment failures, optimize maintenance schedules, and extend asset lifecycles, supporting large-scale infrastructure projects and reducing operational downtime across the Kingdom's expanding construction sector.

Grab a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-construction-market/requestsample

Saudi Arabia Construction Market Trends & Drivers:

Saudi Arabia's construction market is experiencing robust growth, driven by massive government-led mega-projects under Vision 2030 and the Public Investment Fund's (PIF) strategic financing initiatives. The market is fueled by unprecedented investments in transformative projects including the $500 billion NEOM megacity, Qiddiya entertainment destination, and The Red Sea Project luxury tourism development. With the government's commitment to economic diversification and reducing oil dependency, there's growing demand for residential, commercial, industrial, and infrastructure construction across all regions of the Kingdom.

The rapid expansion of housing development and urbanization is significantly boosting market demand. With Saudi Arabia's population reaching 37.47 million in 2024 and a growth rate of 1.43%, urban centers face unprecedented housing demand. The Ministry of Municipal and Rural Affairs and Housing has launched comprehensive programs to enhance housing supply and affordability, with Riyadh delivering 16,200 residential units in the first half of 2024 alone, bringing the total to 1.5 million residential units. Public-private partnerships in the residential sector are accelerating development while addressing both affordable housing needs and luxury market demands.

Infrastructure and transportation investments are creating new opportunities across multiple construction segments. The government's ambitious $7 billion Landbridge project, Riyadh Metro system, and King Abdulaziz International Airport expansion are transforming the transport landscape and supporting economic growth. Technology adoption including modular construction, 3D printing, AI, and sustainability initiatives are reshaping construction practices, with companies increasingly integrating advanced technologies like robotics, drones, and Building Information Modeling (BIM) to improve efficiency, reduce costs, and ensure timely project delivery across the Kingdom's diverse construction portfolio.

Saudi Arabia Construction Market Industry Segmentation:

The report has segmented the market into the following categories:

Sector Insights:

● Residential
● Commercial
● Industrial
● Infrastructure (Transportation)
● Energy and Utilities Construction

Breakup by Region:

● 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 including AFRAS, AL Jazirah Engineers & Consultants, Al Latifa Trading and Contracting, Bechtel Corporation, Fluor Corporation, Gilbane Inc., Jacobs, Tekfen Construction, and others.

Ask analyst of customized report: https://www.imarcgroup.com/request?type=report&id=16893&flag=E

Recent News and Developments in Saudi Arabia Construction Market

● February 2025: The Public Investment Fund (PIF) announced a comprehensive construction modernization program, investing USD 5.8 billion in AI-powered construction technologies, smart building systems, and automated project management platforms across 150 major construction projects, targeting 25% improvement in construction efficiency and 30% reduction in project timelines by 2027 to support Vision 2030's infrastructure development goals.

● March 2025: The Ministry of Municipal and Rural Affairs and Housing launched the "Smart Construction Initiative," establishing advanced digital construction hubs equipped with BIM systems, drone monitoring technology, and IoT-enabled safety management systems across major cities, investing USD 2.4 billion to enhance construction quality and accelerate residential and commercial project delivery nationwide.

● April 2025: NEOM announced the integration of revolutionary construction technologies including 3D printing, robotic automation, and AI-driven project management systems for The Line megaproject, investing USD 12.5 billion in advanced construction methods and sustainable building practices, featuring modular construction techniques and smart infrastructure systems targeting completion of the first phase by 2028 while establishing Saudi Arabia as a global leader in innovative construction technologies.

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.

Contact Us:

IMARC Group

134 N 4th St. Brooklyn, NY 11249, USA

Email: sales[@]imarcgroup.com

Tel No:(D) +91 120 433 0800

United States: +1-201971-6302

This release was published on openPR.