The Kingdom of Saudi Arabia and IoT (the Internet of Things) are two terms which have become nearly inseparable in recent years.
With the widespread adoption and implementation of IoT across the Middle East, Saudi Arabia’s innovation within the sector has captured the attention of the world.
The country’s vision for a more connected and digitally advanced society has led to the development of innovative architecture and solutions, bringing significant benefits to both businesses and the general population within the Kingdom.
In this blog post, we will explore the current state of IoT in Saudi Arabia, its impact on various industries and the potential for future growth.
Summary of IoT in Saudi Arabia
Saudi Arabia’s IoT market is currently estimated to be worth over $11.63 billion, with this figure expected to grow to $17.12 billion by 2028.
In 2024, Saudi Arabia’s most profitable IoT sector is automotive IoT, estimated to be worth $3.86 billion, with the industry ($2.88 billion) and consumer ($1.63 billion) sectors being other key financial areas for the Kingdom’s IoT market.
Going forward, innovative projects, such as Saudi Arabia’s Vision 2030 project, are set to play a crucial role in the annual growth rate of the Kingdom’s IoT market, currently estimated to be 10.17% between 2024 and 2028.
Furthermore, the increasing development and adoption of the Internet of Things across the Kingdom have led to the creation of state-owned companies focused on driving innovation and growth in this sector. One example is iot squared, a joint venture between Saudi Arabia’s Public Investment Fund (PIF) and stc Group.
By discovering newfound ways to integrate IoT into daily life, businesses, and the public sector within Saudi Arabia, the Kingdom’s economy is evolving into a more sustainable and digitally advanced one.
Neom: Saudi Arabia’s Burgeoning Urban IoT Area
With the global IoT market expected to experience a 10.4% CAGR (Compound Annual Growth Rate) in the next three years, the Kingdom of Saudi Arabia has decided to capitalise on this growth, by launching the $500 billion NEOM project.
Covering a 26,500 squared km land mass, the NEOM area is set to become the ultimate connected and sustainable smart community of the future.
Holding a combined residential capacity of 1.5 to 2 million people across 468 km of coastline, the creation of the NEOM area is an ambitious project that aims to sustainably fuel the nation’s economy by focusing on 14 leading sectors, including manufacturing, energy, media, tourism and sport.
By focusing on joint IoT ventures, autonomous mobility investment, Industrial IoT development, and 5G/6G adoption, Saudi Arabia can provide a unique platform for IoT innovation, which will offer significant benefits to businesses and communities across the nation.
The Line Project
A key piece of Saudi IoT architecture being developed in the NEOM area, The Line is an innovative one-building smart city that stretches over 170 km (106 miles) from the northwest part of Saudi Arabia up until the Red Sea.
Set to stand at 500 metres high (1,640 feet), The Line will be higher than most of the world’s tallest skyscrapers and provide a new living experience to potentially millions of people.
This ambitious 15-minute city is set to be powered by 100% clean energy, with an innovative approach towards water usage that will make it one of the most sustainable smart cities in the world.
The city’s sustainable approach will be powered by smart grids and energy-efficient IoT solutions, utilising AI, machine learning and data processing to consistently ensure the highest levels of efficiency.
Internal climate control will be a key application of IoT technology within The Line, using a network of advanced sensors, data processing and thermal management systems to continually monitor and optimise the city’s temperature.
Moreover, The Line is said to be a vehicle-free smart transportation city, meaning that there will be no cars on the roads, with pedestrians and cyclists being given priority.
However, an underground high-speed railway with just four stops will be built, meaning that residents will be able to travel from end to end within 20 minutes.
By constructing The Line with IoT as its central focus, Saudi Arabia is showing the world that it is determined to create a sustainable, innovative and connected future for its people. The Line project is set to be completed by 2030, demonstrating the Kingdom’s long-term commitment to IoT innovation.
Key IoT Market Drivers
Aside from the NEOM project, there are numerous other applications of IoT within Saudi Arabia, such as smart factories within the industrial sector.
For example, the world’s largest oil producer, Saudi Aramco, has adopted IoT infrastructure to optimise efficiency and safety within its operations, using sensors to monitor vital equipment and predict maintenance needs within the workplace. In turn, this increases the operation’s productivity and reduces downtime.
As suggested within the Vision 2030 Project, the development of energy-efficient and sustainable resources is a key goal for Saudi Arabia. With the help of IoT, this goal can become more achievable.
Taking a multifaceted approach to green energy, Saudi Arabia has several innovative projects in motion that are being powered by IoT infrastructure. For instance, the Kingdom is currently building one of the world’s largest solar power plants, with over 1 million IoT solar panels installed with the capacity to generate a combined 2060 MW.
Moreover, the implementation of IoT-based environmental monitoring has seen a significant uptake in recent years, utilising IoT sensors and data analytics to improve air and water quality within the nation.
Following on from environmental monitoring, precision farming has also seen significant growth within the agricultural sector, providing more accurate weather predictions, crop irrigation plans and pest control measures.
Lastly, the introduction of remote health monitoring and IoT solutions within the healthcare industry across Saudi Arabia has helped to improve the quality of care patients receive, enabling real-time monitoring of vital signs and reducing the need for frequent hospital visits.
Challenges of IoT in Saudi Arabia
While there are significant developments in IoT infrastructure and technology within the Kingdom of Saudi Arabia, there are also significant challenges that come with its implementation.
One key barrier is the lack of a strong regulatory framework to govern data protection and privacy. This is especially concerning when it comes to sensitive personal information collected through IoT devices, such as health data or location tracking.
Another challenge is the limited availability of skilled professionals and experts in IoT technology. As the demand for IoT solutions grows, there is a need for more professionals with the knowledge and expertise to develop and implement these systems effectively.
Furthermore, connectivity challenges remain a prominent issue within the IoT sector, particularly in remote and rural areas. In order for IoT to reach its full potential, it is crucial that reliable and efficient connectivity solutions are implemented across the entire nation.
Discover Reliable Global IoT Coverage
As developments in Saudi Arabia continue, it’s vital for businesses to have reliable and global connectivity solutions in place.
With its extensive experience in providing IoT coverage across the globe, Caburn Telecom offers a range of IoT solutions tailored to the specific needs of businesses operating within Saudi Arabia and beyond.
Caburn Telecom is an industry leader in global IoT connectivity solutions, providing businesses around the world with seamless and reliable global IoT coverage.
With a range of connectivity options tailored to your operation’s needs, Caburn Telecom has the expertise to help businesses navigate the complexities of IoT connectivity.
Our solutions are tailored to meet specific business needs, ensuring efficient data transmission and cost-effective operations. With a strong focus on security and data privacy, we ensure compliance with local regulations in Saudi Arabia and around the world.
If you are looking to expand your IoT operations, contact Caburn Telecom today to discover how we can help you achieve reliable global coverage and advance your business through innovative IoT solutions.
Let us help you build a smarter, more connected future for your business and its customers.