Saudi Arabia Artificial Intelligence in Manufacturing Market

Saudi Arabia Artificial Intelligence in Manufacturing Market Overview:

The Saudi Arabia artificial intelligence in manufacturing market size reached USD 48.76 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 702.37 Million by 2033, exhibiting a growth rate (CAGR) of 31.60% during 2025-2033. The market is growing due to Saudi Arabia’s adoption of AI in manufacturing, driven by Vision 2030, Industry 4.0 advancements, and sustainability goals, enhancing automation, efficiency, and resource optimization while strengthening industrial competitiveness, streamlining supply chains, and supporting eco-friendly manufacturing practices for long-term economic diversification.

Saudi Arabia Artificial Intelligence in Manufacturing Market Trends:

Economic Diversification

A primary motivator for AI adoption in Saudi Arabia's manufacturing industry is the government's Vision 2030 plan, aimed at decreasing oil reliance by growing the manufacturing and technology fields. Vision 2030 offers a strategic plan for updating and diversifying the national economy, identifying AI as a crucial technology for realizing this change. In 2024, Saudi Arabia established the AI Center for Manufacturing and Mining to enhance national skills in artificial intelligence, supporting its ambition to emerge as a top industrial leader. Revealed at the Global Smart City Forum in Riyadh, this initiative backed the Kingdom's goals to grow its industrial sector and improve its logistics footprint. By integrating these AI-enhanced investments into its manufacturing operations, Saudi Arabia aimed to boost its industrial production, thus establishing itself as a strong competitor in the worldwide market.

Favorable Investments in Industry 4.0 Technologies

Saudi Arabia’s manufacturing sector is adopting Industry 4.0, which focuses on leveraging advanced digital technologies such as AI, robotics, IoT, and data analytics. This transition enhances operational efficiency, optimizes decision-making, and streamlines supply chains, driving greater productivity across the industry. For instance, in 2024, Saudi Arabia plans to launch "Project Transcendence," an ambitious $100 billion AI initiative to develop infrastructure and attract tech talent, positioning the Kingdom as a leading Middle Eastern technology hub. This initiative focused on accelerating Industry 4.0 technologies, including automation, advanced robotics, smart manufacturing, and the Internet of Things (IoT). By integrating AI-driven insights and intelligent systems, Project Transcendence aimed to transform traditional industries, enhance operational efficiencies, and enable data-driven decision-making.

Commitment to Environmental Sustainability

Saudi Arabia’s focus on sustainability, as part of Vision 2030, is another significant driver of AI adoption in manufacturing. The Kingdom has set ambitious sustainability goals, including reducing carbon emissions and minimizing waste. AI can play a crucial role in meeting these objectives by optimizing resource allocation, monitoring environmental impact, and enabling more efficient energy use. For instance, in 2023, NEOM invested USD 100 million through the NEOM Investment Fund (NIF) in Pony.ai, advancing sustainable development by integrating autonomous driving and AI-driven manufacturing solutions within its smart, eco-friendly infrastructure. This commitment to sustainability enhanced the country’s environmental credentials and appeals to global investors and customers who prioritize green and eco-friendly manufacturing practices.

Saudi Arabia Artificial Intelligence in Manufacturing Market Growth Drivers:

Government Programs under Vision 2030

The Saudi Arabia AI in manufacturing market is driven by robust government backing under Vision 2030, which is leading the development of AI as a key pillar of industrial change. The government is consistently investing in smart manufacturing ecosystems, promoting digital infrastructure, and fostering adoption of AI technologies to promote productivity and minimize oil revenue dependency. Policies and incentives are being implemented to spur industrial modernization, and public-private partnerships are being promoted to undertake AI-driven automation, robotics, and predictive analytics in factories. By integrating AI with national development plans, the government is ensuring that manufacturing operations are becoming more efficient, data-driven, and competitive at the global level. These efforts are establishing a conducive climate for domestic and global AI solution providers, as well as facilitating industries in embracing smart technologies that are transforming production processes, enhancing the use of resources, and contributing to the long-term diversification of the Saudi economy.

Increased Demand for Industrial Automation

Saudi manufacturing industry is increasingly embracing automation, with AI technologies having a central role to play in reshaping operations. Intelligent automation demand is being fueled by the necessity of enhancing production efficiency, cutting downtime, and eliminating human mistakes. Manufacturers are increasingly adopting AI-driven systems like predictive maintenance, quality inspection, and process optimisation tools to improve operational reliability. Through the use of machine learning (ML) algorithms and computer vision, production lines are now able to recognize defects in real-time, predict equipment failures, and dynamically adjust workflows. This integration of AI-based automation is helping manufacturers save costs, maximize labor productivity, and ensure consistent product quality. Concurrently, international competition is inducing local producers to adopt Industry 4.0 technologies, so that Saudi Arabia becomes a regional center for advanced production. Such growing demand for automation is driving long-term investment in AI solutions across diverse industrial sectors.

Increased Investments in Smarts Manufacturing Infrastructure

The market is driven by substantial investments in smart manufacturing infrastructure, with companies and governments constructing sophisticated facilities that are integrating AI solutions at the very heart of them. Factories are increasingly implementing industrial Internet of Things (IIoT) devices, digital twins, and analytics platforms powered by AI to facilitate data-driven decision-making. These investments are being driven by local and foreign stakeholders alike who are seeing the strategic value of Saudi Arabia as a hub for technology-driven manufacturing. Investments are going towards the establishment of research facilities, centers of innovation, and training programs to create skills in AI among the workforce with a long-term guarantee of AI adoption. While this is happening, integration with international technology providers is driving the adoption of expertise and knowledge, speeding up the integration of AI systems. As infrastructure gets upgraded and AI technologies get integrated into the core production processes, the Saudi Arabian manufacturing scene is changing at a rapid pace.

Saudi Arabia Artificial Intelligence in Manufacturing Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on component, technology, application, and end-use.

Component Insights:

• Hardware
• Software
• Services

The report has provided a detailed breakup and analysis of the market based on the component. This includes hardware, software, and services.

Technology Insights:

• Machine Learning
• Computer Vision
• Context Awareness
• Natural Language Processing

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes machine learning, computer vision, context awareness, and natural language processing.

Application Insights:

• Material Movement
• Predictive Maintenance & Machinery Inspection
• Production Planning
• Field Services
• Quality Control and Reclamation
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes material movement, predictive maintenance & machinery inspection, production planning, field services, quality control and reclamation, and others.

End-Use Insights:

• Semiconductor and Electronics
• Energy and Power
• Medical Devices
• Automobile
• Heavy Metal and Machine Manufacturing
• Others

A detailed breakup and analysis of the market based on the end-use have also been provided in the report. This includes semiconductor and electronics, energy and power, medical devices, automobile, heavy metal and machine manufacturing, and others.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Artificial Intelligence in Manufacturing Market News:

• In August 2025, Collaborating with Groundup.ai, a Singaporean industrial AI firm, Coca-Cola has adopted solutions that reduce unexpected downtime and provide quantifiable cost savings. On September 2, 2025, in a webinar organized by Groundup.ai, Mr. Mohammed Wasfi, Technical & Supply Chain Director at Coca-Cola Bottling Saudi Arabia, will share a case study illustrating how his team utilizes industrial IoT, custom sensors, and AI-generated insights to maintain seamless operations in one of the globe's most competitive beverage markets.
• In May 2025, With Gulf nations striving to diversify their economies, Saudi Arabia is enhancing its emphasis on industrial growth. With Vision 2030 as a foundation, the Kingdom is focusing on advanced manufacturing, sustainability, and economic stability. On May 28, Saudi Arabia launched the Advanced Manufacturing and Production Center, a program designed to speed up industrial transformation utilizing advanced technologies and sustainable methods. The hub aims to enhance efficiency, adaptability, and creativity within Saudi Arabia's manufacturing industry. By utilizing Fourth Industrial Revolution technologies like artificial intelligence, automation, and intelligent systems it seeks to centralize production and enhance the Kingdom’s international competitiveness.
• In May 2025, Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, Prime Minister and Chairman of the Board of Directors of PIF, declared the establishment of HUMAIN, a company owned by PIF. HUMAIN will function and invest throughout the artificial intelligence (AI) value chain as a cohesive operating entity. HUMAIN will additionally optimize multiple data center projects, acquire hardware, and expedite the integration of AI technologies. The organization will function as a regional and international AI center for key industries, such as energy, healthcare, manufacturing, and financial services.
• In November 2024, Google’s new AI hub in Saudi Arabia aims to add $71 billion to the economy, supporting Vision 2030 by advancing local AI solutions and fostering regional talent and innovation.
• In September 2024, IBM introduced its enterprise studio, watsonx.ai, and SDAIA’s open-source Arabic Large Language Model, ‘ALLaM,’ to the DEEM Cloud platform. This collaboration enhanced DEEM’s cloud capabilities, advancing AI-driven transformation for Saudi government entities and supporting AI innovation in the Kingdom’s manufacturing sector.

Saudi Arabia Artificial Intelligence in Manufacturing Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia artificial intelligence in manufacturing market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia artificial intelligence in manufacturing market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia artificial intelligence in manufacturing industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.