Saudi Arabia Smart Cities Market Size to Worth USD 32,336.7 Million by 2034 Growing at 8.91% CAGR

Saudi Arabia Smart Cities Market Overview
Market Size in 2025: USD 14,424.9 Million
Market Forecast in 2034: USD 32,336.7 Million
Market Growth Rate 2026-2034: 8.91%

According to IMARC Group's latest research publication, "Saudi Arabia Smart Cities Market Report by Focus Area (Smart Transportation, Smart Buildings, Smart Utilities, Smart Citizen Services), and Region 2026-2034", Saudi Arabia smart cities market size reached USD 14,424.9 Million in 2025. The market is projected to reach USD 32,336.7 Million by 2034, exhibiting a growth rate (CAGR) of 8.91% during 2026-2034.

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How AI is Reshaping the Future of Saudi Arabia Smart Cities Market

● AI powers Saudi Arabia's Vision 2030 by optimizing urban planning in smart cities like NEOM, where a $500 billion investment integrates AI for efficient resource management and sustainable living, enhancing resident quality of life through data-driven decisions.

● Through SDAIA, the government drives AI adoption in smart cities, advancing five cities in the global IMD Smart City Index with initiatives focusing on cybersecurity and intelligent infrastructure for safer, more connected urban environments.

● Major companies like HUMAIN, backed by a $40 billion PIF fund, develop Arabic language AI models to transform smart city services in healthcare and energy, creating innovative solutions tailored to local needs.

● AI enhances smart mobility in projects like The Line, using IoT and predictive analytics to cut traffic congestion and improve public transport, supported by over $20 billion in digital transformation investments across the kingdom.

● Partnerships such as SCAI's $776 million venture with SenseTime boost AI in smart cities, focusing on computer vision for retail and healthcare automation, driving economic growth and attracting global talent to Saudi Arabia.

Saudi Arabia Smart Cities Market Trends & Drivers:

Saudi Arabia's Vision 2030 is supercharging the smart cities push, pouring massive funds into mega-projects like NEOM, Red Sea Project, and Qiddiya that blend cutting-edge tech with everyday living. These aren't just plans on paper-NEOM's rolling out 5G networks via STC partnerships and AI for everything from energy grids to security, aiming to slash energy use by up to 30% with renewables like solar and hydrogen. The Ministry of Communications and Information Technology, alongside SDAIA, backs this with e-government platforms and digital IDs, making services seamless for citizens. Government initiatives like these have sparked public-private deals, drawing giants like Huawei and Siemens to build IoT backbones that connect sensors across cities for real-time monitoring. Take Riyadh: smart governance here optimizes resources, cutting waste while boosting quality of life-think integrated apps for healthcare and education that feel intuitive, not bureaucratic. It's creating jobs in tech and tourism too, with NEOM alone eyeing big GDP contributions through sustainable urban models that others worldwide might copy. This top-down drive isn't hype; it's transforming how Saudis live, work, and move in hyper-connected spaces.

Smart transportation is revolutionizing Saudi roads, with systems like Saher and Basher slashing traffic fatalities by over 60% through AI-powered cameras spotting speeders, lane changers, and violations in real time. In places like Dammam and Jeddah, these tools have dropped accident rates by 20% and eased congestion by the same margin, while emergency responses zip in 20-30% faster thanks to data dashboards predicting risks. Tahakom's tech crunches accident data to flag black spots, letting authorities act before crashes happen, which ties right into Vision 2030's safety goals. Company news shows STC and Mobily expanding 5G for autonomous vehicles and drone taxis in NEOM's Line, making mobility smarter and greener. Real-world wins extend to smart meters nationwide, cutting utility losses and supporting electric vehicle rollouts amid urbanization pressures. It's not just safer streets-folks are saving time, reducing emissions, and enjoying predictive traffic apps that reroute you effortlessly. This trend proves tech can tackle real headaches like gridlock in booming cities, setting Saudi Arabia apart as a mobility innovator.

AI and IoT are exploding in Saudi smart cities, powering everything from predictive maintenance to personalized services with rapid adoption of sensors and cloud platforms. NEOM uses AI surveillance for instant threat detection and biometric building access, while Red Sea Project deploys 2,500 IoT sensors for environmental monitoring and seamless visitor experiences across 52 smart services. Stats highlight the boom: edge computing handles real-time traffic and utilities, aligning with SDAIA's data strategies for smarter decisions. Partnerships like stc with New Murabba bring ICT infrastructure for cognitive cities, optimizing energy and waste with machine learning that cuts urban energy by 15-20% and water by 25-30%. In practice, this means chatbots handling citizen queries instantly and analytics forecasting demand to avoid blackouts-super practical for a growing population. Companies like IBM and local Elm are integrating these for public safety and education, fostering a connected ecosystem that's efficient and citizen-focused. It's exciting how this tech wave makes cities feel alive and responsive, not overwhelming.

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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

● January 2026: Saudi Arabia scales back The Line project in NEOM from 170km metropolis for 9 million to a shorter segment, emphasizing AI and sustainable tech amid rising costs.

● January 2026: Al Madinah ranks 11th globally in Urban Innovation, first among Arab cities, using AI platforms for real-time decisions and geospatial tech to boost sustainability.

● January 2026: Alat and TK Elevator launch €160 million partnership to manufacture AI-integrated elevators locally, advancing smart mobility and creating jobs in Saudi cities.

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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