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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 integration in Saudi smart cities enhances traffic management, reducing congestion by up to 30% through real-time data analytics and intelligent routing systems.
• The government’s SDAIA leads AI initiatives that power urban digital twins, monitoring city infrastructure across thousands of square kilometers to improve resource allocation and safety.
• NEOM employs AI-driven energy optimization, cutting power consumption by 25% with smart grids that balance renewable energy and demand efficiently across the city.
• AI-powered surveillance and emergency response systems in Riyadh and Jeddah increase public safety metrics, allowing faster detection and incident management across urban areas.
• AI-enabled smart services like e-governance and predictive maintenance streamline operations, enhance citizen engagement, and reduce municipal costs by up to 20% in multiple Saudi cities.

Saudi Arabia Smart Cities Market Trends & Drivers:

Rapid urbanization in Saudi Arabia is pushing the demand for smart city solutions that ease congestion, improve energy efficiency, and enhance public safety. The government’s Vision 2030 initiative has committed over USD 500 billion to smart infrastructure projects, including NEOM and The Line, transforming urban living with AI-powered mobility, intelligent energy grids, and public services. This vast investment combined with rising digital literacy and 5G rollout accelerates adoption of smart solutions, enabling cities to manage resources better and deliver superior quality of life for residents in a tech-driven, sustainable environment.

The integration of IoT and AI technologies is a game-changer in Saudi smart cities, enabling real-time monitoring and management of urban systems. IoT platforms link sensors and devices across transport, energy, and security networks, offering predictive analytics and autonomous control. Projects like Riyadh’s Smart Control Room leverage AI to optimize traffic flows, cutting commute times by 15-20%. Sustainable urban mobility powered by connected infrastructure reduces carbon emissions while boosting efficiency. These tech-focused endeavors foster smarter decision-making and operational cost savings, reshaping city management in line with Saudi Arabia’s goals for smarter, greener urban ecosystems.

An emerging trend shaping Saudi smart cities is the focus on citizen-centric, integrated digital services that improve healthcare, governance, and security. Platforms like “Absher” enable streamlined government services while telemedicine and unified health records boost accessibility. Advanced AI surveillance systems and early warning tech enhance public safety, contributing to notable crime rate reductions of 30-40%. The growth of cloud computing, 5G-enabled connectivity, and open data policies supports transparency, citizen engagement, and efficient urban management. This holistic approach aligns with Vision 2030’s goal of creating sustainable, inclusive, and highly livable urban centers across the Kingdom.

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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