Saudi Arabia Big Data And Artificial Intelligence Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.38 Billion |
| Market Size (2029) | USD 2.19 Billion |
| CAGR (2024 - 2029) | 34.24 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Big Data And Artificial Intelligence Market Analysis
The Saudi Arabia Big Data And Artificial Intelligence Market size is estimated at USD 0.38 billion in 2024, and is expected to reach USD 2.19 billion by 2029, growing at a CAGR of 34.24% during the forecast period (2024-2029).
• Industries in Saudi Arabia are rapidly developing, mainly due to the growing adoption of data-based AI solutions and developments in machine learning, which boosts overall market growth opportunities.
• With high-speed broadband and 5G deployment, data access, and security, Saudi Arabia is building an AI-friendly ecosystem. The country is building alliances with the market players to facilitate the advanced 5G deployment.
• For instance, Ericsson announced a three-year Neutral Host Provider (NHP) agreement with Advanced Communications and Electronics Systems (ACES), an international neutral host provider. Under this agreement, ACES will provide advanced Ericsson indoor products to multiple communications service providers (CSPs) and serve the increasing demands for enhanced 5G network connectivity in the Kingdom of Saudi Arabia.
• These regions are heavily invested in e-commerce and governance initiatives, including IP protection; the area has considerable demands for web-based and mobile services. A rise in enterprise and government use of Web services could open many opportunities for contractors and service providers.
• AI has increased reliance on it in the country, which ranges from oil price volatility to rapid urbanization and water scarcity, because of its ability to deal with a range of issues international financial and social challenges. AI, whether on a global scale or in regional policy for this Middle Eastern country, has numerous strategic implications and plays an important role.
• In September 2023, Huawei Cloud announced the launch of the Huawei Cloud for the Riyadh Region. The announcement was made at the Huawei Cloud Summit held in Saudi Arabia in 2023. This region is projected to help promote digital-led financial growth in the country. The introduction of the Huawei Cloud Riyadh Region also proclaimed that the Saudi Arabia Region is projected to be Huawei Cloud's focus in porting to Central Asia, the Middle East, as well as Africa, given innovative, secure, reliable, and maintainable cloud services.
• Furthermore, even though college students, technology lovers, and research researchers are very aware of the benefits of artificial intelligence, there needs to be more awareness about its benefits in large populations. In addition, to achieve adequate performance, the Deep Learning model would need exceptional fine-tuning, a proper and reliable algorithm, hyperparameter optimization, uninterrupted training on data and testing with test data, and mighty computing power.
• After the COVID-19 pandemic, there has been significant growth in the demand for broadband and data services, along with AI, in Saudi Arabia. To keep vital communication lines operational while continuing to deliver an improved living standard for the population of the Kingdom, the country has deployed information and communication technologies ICTs.
Saudi Arabia Big Data And Artificial Intelligence Market Trends
Hardware Sector is Likely to Witness a Major Growth
• Saudi Arabia's government investment fund regularly contributes to the growth of artificial intelligence in the country. For instance, in March 2024, the government of Saudi Arabia created a USD 40 billion fund to invest in artificial intelligence. The government is envisaged to develop several tech startups deploying AI for chip production and building large-scale data centers to make next-generation computing available. The fund is planned with US venture capital firm Andreessen Horowitz to revolutionize the digital landscape in the country by leveraging artificial intelligence. Moreover, as per data by the Saudi Data & AI Authority, the contribution to artificial intelligence revenue will reach USD 135.2 billion by 2030.
• The demand for AI technologies will grow due to KSA's new vision for 2030 and its policy to strategically position countries in the coming years, i.e., by investing in Artificial Intelligence Technology while developing other sectors such as non-Oily industries that require suitable artificial intelligence hardware. Moreover, the Smart Data & AI Summit in May 2024 will attract more than 300 Big Data Analytics & AI professionals, contributing to future artificial intelligence growth.
• The AI Hardware sector includes companies like Amazon, Apple, Baidu, and Google that spend billions of dollars to develop Artificial Intelligence technologies. The inputs required for AI to live up to expectations, such as powerful computer hardware, increasingly advanced algorithmic models, and a vast and rapidly growing database, are considered present.
• In February 2023, Oracle announced the opening of a third public cloud region to invest USD 1.5 Billion to Meet Cloud Computing Demand in Saudi Arabia, where Oracle Cloud delivers pioneering innovation in technologies like AI, Machine Learning, and IoT, and it will help fuel the economic growth and digital transformation that is an integral part of the Saudi Vision 2030.
• In Riyadh, there are offices of global companies that supply software and hardware solutions to various businesses and government projects in Saudi Arabia, such as SAP, Microsoft, Cisco Systems, Tata Consultancy Service, Honeywell, SBM, Salesforce-Apple, HP, Intel, etc.
Retail Sector to Witness Significant Growth
• Due to the high adoption of AI technologies in this forecast period, shopping malls are expected to increase. The rise of cloud-based platforms and other AI technologies enables customers to expect a more effortless shopping experience. In particular, this is causing a surge in demand for big data and Artificial Intelligence in the Middle East Retail Market.
• To meet a growing number of young and tech-savvy customers, retailers are turning to innovative ways where the technology can be used. In addition, retailers will benefit from the analysis of artificial intelligence and big data to more effectively meet customers' needs because of the demand for improved user experience. Implementing artificial intelligence will allow organizations to better understand their client's needs and create an enhanced customer experience by offering insights into customers' likes and dislikes and recommending products they're willing to buy.
• AI can effectively analyze vast data, predict customer behavior, and enhance the e-commerce site's core operation for recommendations with algorithms, product search ranking, merchandising placements, and much more.
• For instance, in March 2023, AWS and NVIDIA announced The multipart collaboration, which aims to develop the world's most scalable, on-demand Artificial Intelligence infrastructures optimized for training increasingly complex large language models and innovative AI applications. The collaboration focuses on features of next-generation (Amazon EC2) P5 instances by NVIDIA H100 Tensor Core GPUs and on AWS's state-of-the-art networking and scalability, which the compute performance of deep learning models shall be provided with up to 20 exaFLOPS.
• As one of the most accessible AI use cases for e-commerce companies, retailers in Saudi Arabia can let customers access their digital store at any hour of the day. This technology will allow you to interact with a customer whenever needed, learn their details, and give them the best possible response to create an even more personalized experience. As per data from the Kingdom's Central Bank, the total value of e-commerce sales using Mada cards and point-of-sale transactions was USD 205.5 billion in 2023.
Saudi Arabia Big Data And Artificial Intelligence Industry Overview
Saudi Arabia's Big Data and Artificial Intelligence Market is moderately competitive with significant regional players such as Microsoft Corporation, Nvidia Corporation, Amazon Web Services Inc., SAP SE, and Intel Corporation. The companies leverage strategic collaborative initiatives and acquisitions to increase market share and profitability.
In January 2024, Google and Intel discussed strategic partnerships with Saudi Arabia in various fields, such as Artificial Intelligence (AI) and Cloud Computing. Google has planned to launch Google for Startups Cloud Program in the first quarter of 2024. This supported Saudi SMEs with technical assistance, dedicated mentors, and industry experts while potentially receiving cloud credits of up to USD 200,000.
In November 2023, Riyadh Air and Microsoft announced signing a Memorandum of Understanding to achieve innovation across Saudi Arabia's aviation sector. Under this agreement, Riyadh Air has selected Microsoft's Azure cloud platform as its preferred platform. It will deploy a highly secure and reliable platform to boost operational efficiency and customer service. Both organizations leverage each other's capabilities in big data, artificial intelligence, copilot experiences, the Metaverse, and virtual reality to enhance Riyadh Air's offerings, services, and operational models.
In October 2023, Lunit, South Korea's prominent medical artificial intelligence service offering company, announced its plans to reinforce a partnership with the government of Saudi Arabia to bring virtual hospitals to countries in the Middle East. Saudi Vision 2030 project is boosting the virtual hospital initiative. Saudi Vision 2030 is a national project to expand the nation's economy and nurture its public service segments, such as education, health, and tourism, instead of relying exclusively on the oil business.
Saudi Arabia Big Data And Artificial Intelligence Market Leaders
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Microsoft Corporation
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Nvidia Corporation
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Amazon Web Services Inc.
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SAP SE
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Intel Corporation
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Big Data And Artificial Intelligence Market News
• April 2024 - Noventiq Holdings PLC, a provider of digital transformation and cybersecurity solutions and services, announced a venture with Al-Suwaiket Group (a conglomerate with diversified interests in energy, construction, and technology) to fulfill Noventiq's vision of expansion across Saudi Arabia. This alliance focussed on Noventiq's growth strategy for market, portfolio, and sales channel expansion. This venture amplifies the digital capabilities of Saudi companies by offering services in cybersecurity and Data & AI, which includes Noventiq's proprietary AI solutions like Weaver AI, Fintense, and Selecta.
• July 2023 - Lunit, a provider of AI-powered cancer diagnostics and therapeutics solutions, announced market expansion across the Middle East with a new supply contract. The company announced a collaboration with Dr. Sulaiman Al Habib Medical Group (HMG), Kingdom of Saudi Arabia. Under this partnership, Lunit supplied an AI solution for mammography analysis to Dr. Sulaiman Al Habib Medical Group for the next three years. Lunit and Cloud Solutions also integrated their capabilities to enhance Lunit's AI-powered solutions based on Cloud Solution's advanced cloud AI platform.
Saudi Arabia Big Data & AI Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Assessment of the impact of COVID-19 on the Industry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Smart City Initiatives and Rapid Rise in the Flow of Unstructured Data Due to Mass Deployment of Sensors
- 5.1.2 Adoption of Digital Transformation Technologies in the Enterprises
- 5.1.3 Favorable Governmental Policies for Inclusions of AI
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5.2 Market Restraints
- 5.2.1 Operational Challenges Due to Lack of Supporting Infrastructure and Skill set
- 5.3 Market Opportunities
- 5.4 Analysis of Key use cases
- 5.5 Ecosystem analysis
- 5.6 Comparative Analysis of Big Data and Artificial Intelligence Adoption - Saudi Arabia and Middle East Countries
- 5.7 Comparison of National Strategies to Promote Artificial Intelligence (Comparison of Government Led Initiatives of Other Countries across the World)
- 5.8 Data Science and Artificial Intelligence in Demand in Saudi Arabia
6. MARKET SEGMENTATION
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6.1 By Component
- 6.1.1 Hardware
- 6.1.2 Software
- 6.1.3 Service
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6.2 By Organization Size
- 6.2.1 SMEs
- 6.2.2 Large Enterprises
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6.3 By End User
- 6.3.1 IT and Telecom
- 6.3.2 Retail
- 6.3.3 Public and Government Institutions
- 6.3.4 BFSI
- 6.3.5 Healthcare
- 6.3.6 Energy
- 6.3.7 Construction and Manufacturing
- 6.3.8 Other End Users (Tourism, Transportation, Education etc.)
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Microsoft Corporation
- 7.1.2 Nvidia Corporation
- 7.1.3 Amazon Web Services Inc.
- 7.1.4 SAP SE
- 7.1.5 Intel Corporation
- 7.1.6 Oracle Corporation
- 7.1.7 IQVIA
- 7.1.8 Nala.ai
- 7.1.9 IBM Corporation
- 7.1.10 NEC Corporation
- 7.1.11 SAS Institute Inc.
- 7.1.12 Teradata Corporation
- 7.1.13 Qlik
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
** Subject To AvailablitySaudi Arabia Big Data And Artificial Intelligence Industry Segmentation
Artificial intelligence is a topic that blends computer science and robust datasets to enable problem-solving abilities. In contrast, big data refers to data sets that are complex or too large to be handled by ordinary data-processing application software.
The study analyses the current market scenario and growth trends related to the Big Data and Artificial Intelligence industries in Saudi Arabia. A view of National AI Strategies across the world is also included. The study tracks the region's country-level market dynamics and the significant implementation use cases for AI and data analytics.
The Saudi Arabia Big Data and Artificial Intelligence market is segmented by solutions (hardware, software, service), organization size (SMEs, large enterprises), and end-user (IT and telecom, retail, public and government institutions, BFSI, healthcare, energy, construction and manufacturing, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | Hardware |
| Software | |
| Service | |
| By Organization Size | SMEs |
| Large Enterprises | |
| By End User | IT and Telecom |
| Retail | |
| Public and Government Institutions | |
| BFSI | |
| Healthcare | |
| Energy | |
| Construction and Manufacturing | |
| Other End Users (Tourism, Transportation, Education etc.) |
Saudi Arabia Big Data & AI Market Research FAQs
How big is the Saudi Arabia Big Data And Artificial Intelligence Market?
The Saudi Arabia Big Data And Artificial Intelligence Market size is expected to reach USD 0.38 billion in 2024 and grow at a CAGR of 34.24% to reach USD 2.19 billion by 2029.
What is the current Saudi Arabia Big Data And Artificial Intelligence Market size?
In 2024, the Saudi Arabia Big Data And Artificial Intelligence Market size is expected to reach USD 0.38 billion.
Who are the key players in Saudi Arabia Big Data And Artificial Intelligence Market?
Microsoft Corporation, Nvidia Corporation, Amazon Web Services Inc., SAP SE and Intel Corporation are the major companies operating in the Saudi Arabia Big Data And Artificial Intelligence Market.
What years does this Saudi Arabia Big Data And Artificial Intelligence Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Big Data And Artificial Intelligence Market size was estimated at USD 0.25 billion. The report covers the Saudi Arabia Big Data And Artificial Intelligence Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Big Data And Artificial Intelligence Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major factors driving the Saudi Arabia Big Data and Artificial Intelligence Industry?
Saudi Arabia Big Data and Artificial Intelligence (AI) Market is driven by a) Government initiatives like Vision 2030 b) Increasing digitalization c) Investment in smart city projects d) Growing need for data analytics in sectors such as healthcare, finance, and retail
Big Data & AI in Saudi Arabia Industry Report
The Saudi Arabia big data and artificial intelligence industry is witnessing significant growth, fueled by the integration of AI and big data technologies across various sectors. This expansion is propelled by increased digitalization in business operations, IoT, and social interactions, which has led to a surge in data generation. AI companies in Saudi Arabia are capitalizing on this data to improve decision-making, identify trends, and enhance operational efficiency in diverse industries such as healthcare, finance, IT and telecom, retail, and public sectors. The market is segmented by components like hardware, software, and services, and also by organization size into SMEs and large enterprises. End-user analysis highlights a strong adoption in IT and telecom, retail, and public sectors, showcasing the extensive scope for AI and big data solutions. This synergy is poised to revolutionize business landscapes, positioning the Saudi Arabia big data and artificial intelligence industry as a key area for technological investments and innovation. For detailed insights, Mordor Intelligence™ provides statistics on market share, size, revenue growth rate, and a forecast outlook in their industry reports. Download a free report PDF sample for a comprehensive analysis of the Saudi Arabia Big Data and Artificial Intelligence market.
