Saudi Arabia Smart Cities Market Size to Surpass USD 29,228.7 Million by 2033, At a CAGR of 9.2%

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 analytics in Saudi smart cities enhance traffic flow management, reducing congestion by up to 30% through adaptive signal control and real-time data monitoring.

● The government's National AI Strategy supports training 20,000 AI specialists, boosting local capacity to develop intelligent urban solutions for sustainability and efficiency.

● Riyadh's AI-powered surveillance systems improve public safety by enabling real-time threat detection and faster emergency response across smart neighborhoods.

● AI integration in energy management systems cuts citywide power consumption by optimizing grid loads, improving efficiency in megacity projects like NEOM.

● Smart waste management uses AI and IoT sensors to optimize collection routes, reducing operational costs by 25% and enhancing environmental cleanliness in urban areas.

Saudi Arabia Smart Cities Market Trends & Drivers:

At the most planned level of the smart cities movement in Saudi Arabia, Vision 2030 envisions a future in which urban lifestyles are supported by sustainable cities characterized by smart infrastructure. Over $1 trillion has been invested in innovative urban development projects across Saudi Arabia, including smart energy networks and improved public services. Take AlUla: after joining Riyadh and Jeddah in the 2025 IMD Smart City Index, smart monitoring has changed the pace of the city's energy consumption by 15-20%, creating a more habitable city. Today, similar projects are making Saudi cities more livable and sustainable. They are also establishing the Kingdom's leadership role in urbanization throughout the Middle East.

Saudi smart cities using IoT and AI to derive value from raw data for citizens and businesses, with IoT market value last year estimated at $9.5bn. Sensors are locating leaks to slash water consumption by 25-30%, and smart traffic systems are helping to relieve congestion in projects such as NEOM. Real-time traffic apps, alternate routes, or balancing load in a high-rise building can reduce emissions and increase safety. Digital twins are coming. You can see how Naver can construct a 3D model of Riyadh or Mecca with a 10cm margin of error, simulating emergencies and construction conditions in real time. This is magic, making cities smarter, not just prettier.

Public-private partnerships are accelerating Saudi Arabia's smart city vision, combining local expertise with global resources to realize ambitious projects quickly. April saw Huawei and KAFD DMC launch WiFi-7 in King Abdullah Financial District, which uses AI to supercharge connectivity for millions. Or Viper Networks' new pilot last September, also at the edge, as it seeks to maximize urban operations. Or partnerships announced with Orange Business that provide cloud-based kits that save 40-60%. These all seek to solve real problems: integrated CCTV in public safety buildings; smart parking that liberates commuters' hours. And this collaboration is creating jobs, driving innovation, and building an ecosystem that bridges tech with community needs.

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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

● October 2025: Riyadh Smart City unveiled AI-powered public safety systems, improving emergency response times by 40% through real-time surveillance and predictive analytics.

● August 2025: NEOM launched smart energy grids using IoT and AI, reducing power consumption by 20% and advancing sustainable urban infrastructure.

● June 2025: Saudi Arabia invested SAR 5 billion in smart mobility projects integrating autonomous vehicles and intelligent traffic management to ease urban congestion.

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.

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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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