Saudi Arabia Industrial IoT Market Overview, 2029

Saudi Arabia Industrial IoT Market Overview, 2029

The Saudi IIoT market is growing at an incredible rate, impelled by the digital transformation of the kingdom and its economic diversification according to its ambitious Vision 2030. This vision of the Saudi government is to implement a post-oil dependent economy. A huge investment is going into technology and industrial modernization; therefore, IIoT becomes one of its key constituents. Governments come up with different programs and policies that help in the adoption of IIoT, including smart city projects and modernization of industries with enhanced digital infrastructure. The need to increase productivity, efficiency, and competitiveness of non-oil sectors of the economy edges the need to adopt IIoT solutions in such sectors as manufacturing, logistics, and utilities. Maturity in AI, machine learning, big data analytics, and edge computing are also allowing more sophisticated and effective IIoT applications. The oil and gas sector has been among the large adopters of IIoT in predictive maintenance, asset management, and operational efficiency. In manufacturing, IIoT is changing traditional operations in companies due to the development of smart factories, automated production lines, and real-time monitoring. IIoT solutions in utilities—such as water and electricity—optimize operational efficiency and energy management, while smart grid solutions also play a key role in this sector. Transportation and logistics utilize IIoT solutions to make operations in supply chain management, fleet tracking, and logistics more efficient. A few technological trends in the Saudi IIoT market are moving toward edge computing, wherein more data gets processed closer to where it is generated, bringing down latency and improving real-time decision-making. Next-generation 5G cellular networks will deliver increased and reliable connectivity, thereby improving IIoT applications. Establishment of cybersecurity measures for defense against cyber attacks and retention of data integrity is given more attention within IIoT systems. More importantly, integration with AI and machine learning capabilities for predictive analytics, anomaly detection, and autonomous decision-making will be necessary.

According to the research report ""Saudi Arabia Industrial IOT Market Overview, 2029,"" published by Bonafide Research, the Saudi Arabia Industrial IOT market is anticipated to add to more than USD 2 Billion by 2024–29.Extra government initiatives and policies, such as the National Industrial Development and Logistics Program, diffuse IIoT by encouraging innovation, technological advancement, and infrastructure development. Moreover, the need to diversify the economy translates to enhanced productivity, efficiency, and competitiveness of sectors such as manufacturing, logistics, and utilities—drivers of the adoption of IIoT solutions. Also, the simplicity and effectiveness of IIoT applications make them more appealing to different industries due to technological advancements in AI, machine learning, big data analytics, and edge computing. One major challenge is the development of digital infrastructure that can support the wide adoption of IIoT. While there are numerous ongoing investments in this regard, hitting the scale and robustness levels required for the infrastructure has yet to be completely achieved. Another big problem is the skills gap, where professionals with the right type of expertise are needed to implement and then manage these technologies of IIoT. The fourth important concern is cybersecurity, as an increased IIoT system brings an enhanced risk related to cyber threats. Ensuring robust cybersecurity measures has to be treated as topmost in securing data integrity and functionality of systems. Clearly defined regulatory frameworks for the use of IIoT technologies will ensure sustainable growth, possible legal spats, and compliance issues. With Saudi Arabia now confirmed as one of the world's fastest-growing tourism destinations, the hospitality industry in the country has turned to the latest technology in an effort and attempt to woo regional and global tourists who are tech-savvy—this spells a shift in the hotel scene of the Kingdom. From AI and IoT through big data analytics and robotics, investment in new technologies to optimize revenue, guest experiences, and operational efficiency is keeping Saudi Arabia's hotel and hospitality sector ahead of the curve. The Hotel & Hospitality Expo will make a statement at the Riyadh Front Exhibition & Conference Centre. Co-located alongside Index Saudi Arabia and the Lighting Design & Technology Expo, the show will unite manufacturers and suppliers in the worlds of hotel and hospitality with buyers in the Kingdom.

With high demand from Saudi Arabia for sensors, machines, and other devices, this country will prove to be a key upside potential for the IoT hardware market. Growth is most likely to be driven by the modern-day digital transformation across key industries such as oil & gas, manufacturing, and utilities that are looking toward the implementation of IoT hardware for better operational efficiency, enhanced safety, and reduced costs. With Vision 2030, Saudi Arabia will continue to push forward in the diversification of its economy, which bodes well for the prospects of IoT hardware. While the hardware space is dominant at present, the software space is positioned to see some serious development. IoT Software includes tools to manage, analyze, and visualize data. Such is an important tool in gaining insight from the huge amounts of data collected by IoT devices. Demand for IoT software will rise as businesses in Saudi Arabia come to appreciate the benefits of data-driven decision-making. This is further accelerated by the growing demand for predictive analytics, remote monitoring, and automation capabilities across various industry sectors. IoT platforms function as the glue between the hardware and software elements that bring management, automation, and data analytics capabilities driving value from IoT deployments. As more and more companies in Saudi Arabia start using IoT solutions, the demand for IoT platforms is also likely to grow accordingly. This will provide a unified solution for managing IoT devices, analyzing data, and integration with other systems, which makes them very critical in any IoT strategy. With raising complexity of IoT deployments, need for strong, scalable and protection-ensuring IoT Platforms is higher than ever.

The manufacturing vertical holds a significant market share of the Saudi Arabia Industrial IoT market. IIoT technologies are nearly redefining the process of manufacturing, making smart factories and automated production lines a reality. Take, for instance, Saudi Aramco's facility in Petro Rabigh that deploys their IIoT solutions to bring enhanced operational efficiency, predictive maintenance, and real-time monitoring of machinery. A few of the major applications of IIoT in healthcare include remote patient monitoring, smart medical devices, and telemedicine services. For example, the King Faisal Specialist Hospital & Research Centre is utilizing IIoT-empowered gadgets for continuous patient vitals monitoring, which helps to deliver on-time medical interventions. The main factors driving the demand for IIoT in the healthcare domain relate to growing digital health initiatives and turning hospitals into smart ones. The energy industry in Saudi Arabia Taketh interest in IIoT technologies for the production of energy, monitoring of distribution, and consumption.Some of the critical applications of IIoT solutions in Saudi Arabia correspond to smart grid management, energy monitoring, and predictive maintenance of energy infrastructure. For example, the Saudi Electricity Company makes use of the IIoT for monitoring performance at power plants and distribution networks, enabling proactive maintenance and reducing downtime.

IIoT in the energy sector helps improve operational efficiency, avoids losses of energy, and integrates renewable energy sources into the grid. Oil and gas is one of the largest adopters of IIoT technologies in Saudi Arabia. Some possible examples of use cases for this industry could be asset management, predictive maintenance, and real-time monitoring—all working within or in concert with oil fields and pipeline infrastructure. The national oil company, Saudi Aramco, deploys IIoT solutions for monitoring its drilling operations, optimizing its production processes, and ensuring the safety and reliability of its infrastructure. IIoT technologies have rapid adoption in the Saudi Arabian transport sector, improving logistics, fleet, and transport infrastructure. IIoT solutions track vehicles in real-time, predictive maintenance of transportation-linked assets, and optimize the Supply Chain Operations. For instance, Saudi Railways Organization puts IIoT into monitoring the condition of tracks and trains in order to ensure the safety factor and efficiency in rail transport. Other sectors embracing the many uses of IIoT technologies in Saudi Arabia include retail, metals & mining, and agriculture. IIoT is used in the retail sector to inventory management, customer experience enrichment, and supply chain optimization. IIoT is applied in metals and mining for the monitoring of equipment condition, predictive maintenance, and even safety management. Some main applications of IIoT in agriculture include precision farming, smart irrigation, and livestock monitoring. For instance, NADEC deploys IIoT-enabled sensors that monitor the moisture level in the soil, hence optimizing irrigation and improving crop yield along with conservation of water.

The Saudi Arabian industrial IIoT market is driven by wireless connectivity technology. A combination of flexibility, scalability, and cost-effectiveness associated with the wireless technologies underpins growth in adoption. Wireless IIoT solutions are solutions targeted at applications for which wiring becomes either impractical or very expensive. They provide full connectivity over large areas of industrial sites, thus allowing real-time data transmissions and remote monitoring. The widespread 5G deployment is one of the major drivers for wireless IIoT growth in Saudi Arabia. Wireless technologies such as Wi-Fi, Bluetooth, and LPWAN find wide acceptance in industries such as manufacturing, oil and gas, utilities, and logistics sectors. Wired connectivity technology, although less prevalent than the wireless sector, is also undergoing rapid development in the Saudi Arabia IIoT market. Traditional or wired connections have advantages related to reliability, stability, and high speed for the transmission of huge volumes of data, which is necessary for critical industrial applications that involve tasks performed almost continuously. For instance, industries like manufacturing, where the requirements on control seem precise and continuous, are those in which wired connections would be most suitable. The adoption of Ethernet and other wired technologies is increasingly being adopted as industries begin to appreciate the value of interference-free communication channels that are secure. The infrastructure spends in terms of wired connectivity are massive, impelled by the need for robust and secure networks that are able to take the huge loads of data an IIoT device generates. Moreover, in those environments that can naturally obstruct wireless signals or in cases where there may be issues with electromagnetic interference, the wired solution stands as a reliable alternative.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Industrial IoT market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offering
• Hardware
• Software
• Platforms

By Vertical
• Manufacturing
• Healthcare
• Energy
• Oil & Gas
• Transportation
• Others (Retail, Metals & Mining and Agriculture)

By Connectivity Technology
• Wireless
• Wired

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Industrial IoT industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.