Saudi Arabia Augmented Reality Gaming Market

Saudi Arabia Augmented Reality Gaming Market Overview:

The Saudi Arabia augmented reality gaming market size reached USD 131.8 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,051.9 Million by 2033, exhibiting a growth rate (CAGR) of 25.96% during 2025-2033. The gaming market is driven by diversification of the economy away from oil dependence through investment in digitalization and the entertainment industry, increasing penetration levels of smartphones, and expansion of e-sports and gaming ecosystem.

Saudi Arabia Augmented Reality Gaming Market Trends:

Technological Advancements

With the advancement of AR technology, notable enhancements in sensors, graphics, and processing power are facilitating increasingly immersive and interactive gaming experiences. Game developers can now expand the limits of innovation, producing more immersive, engaging content that provides enhanced realism and interactivity for gamers. The ongoing development of smartphones, AR headsets, and additional gadgets further contribute to the market growth, as these devices act as the main channels for providing AR gaming experiences. Moreover, advancements in cloud computing and real-time data processing greatly enhance the performance of AR games, boosting user satisfaction and gameplay experience. With these advancements in technology enhancing the accessibility, engagement, and realism of AR gaming, Saudi Arabia is becoming a key center for AR game development, drawing international developers and creating an environment that promotes innovation and growth within the gaming industry.

Growing Demand for Immersive Gaming Experiences

People in Saudi Arabia are progressively looking for new, captivating, and immersive entertainment experiences that provide more than conventional gaming choices. AR gaming meets this need by effortlessly combining the physical and digital realms, delivering a vibrant and engaging type of entertainment. In contrast to standard 2D games, AR games enable players to interact with their environment in innovative and thrilling manners, leading to more immersive, multi-sensory experiences unhindered by the constraints of traditional gaming systems. The engaging aspect of AR gaming attracts a wide array of players, ranging from casual ones to serious gamers, all seeking novel methods to engage with game settings, characters, and obstacles. The growth of competitive and social gaming further supports this demand, as AR games provide distinct chances for players to engage, compete, and work together with others instantly.

Government Support for Digital Innovation and Entertainment

Through the Vision 2030 initiative focusing on enhancing the digital economy and promoting innovation in the entertainment industry, the governing body is establishing a favorable setting for AR gaming to thrive. Funding for infrastructure, such as enhanced internet access, digital systems, and smart city projects, is contributing to the market growth. Furthermore, regulatory backing and initiatives aimed at promoting local game development, along with incentives for technology startups, are cultivating a dynamic AR gaming environment in the Kingdom. This forward-thinking strategy for digital transformation enhances the local gaming industry while drawing in international investments and collaborations within the AR sector. In 2024, Saudi Arabia announced the creation of two venture capital funds, totaling $120 million, to support its growing gaming and esports sectors. The funds, managed by Merak Capital and IMPACT46, aimed to boost local content production and attract international firms. This initiative aligned with Saudi Vision 2030, enhancing the Kingdom's digital transformation goals.

Saudi Arabia Augmented Reality Gaming Market Growth Drivers:

Youthful Population and Changing Entertainment Preferences

A substantial segment of the Saudi populace is below 30 years old, leading to a high demand for creative entertainment options tailored to this tech-oriented group. As per GASTAT's 2024 report, 71% of Saudi citizens are below 35 years old, with an average age of 26.6 and a median age of 23.5. Younger audiences are more drawn to immersive and interactive entertainment types, like AR gaming, which provide more vibrant and captivating experiences compared to conventional media. This generation is very open to the incorporation of digital technologies into everyday life, such as gaming, social media, and online entertainment. As a result, the demand for sophisticated gaming solutions is increasing. Additionally, younger people are more willing to embrace new technologies, positioning them as primary catalysts for AR gaming uptake. With this digitally connected generation increasingly adopting advanced technologies, the AR gaming industry in Saudi Arabia is projected to grow, fostering a dynamic market for state-of-the-art gaming platforms and experiences.

Expansion of Mobile Gaming and Increased Smartphone Usage

With the ongoing evolution of smartphones, featuring quicker central processing units (CPUs), improved graphics, and advanced AR functions, they are quickly transforming into vital instruments for providing immersive and interactive gaming experiences. The adaptability of mobile AR gaming, allowing players to interact with digital components in diverse physical settings, is increasing its appeal. Users can now turn ordinary environments into elements of the gaming realm, merging physical and digital experiences for enhanced immersion. This change is transforming entertainment behaviors, making mobile gaming a leading power in the leisure sector. The increase in AR integration is transforming user interaction, making games more intuitive and engaging. The extensive use of smartphones in Saudi Arabia, along with increasing internet access and young people's fascination with technology, is fostering a favorable setting for AR-enhanced games to thrive.

Rise of E-Sports and Gaming Communities

The e-sports industry, marked by competitive tournaments, talented players, and a wide international audience, is driving the need for sophisticated gaming technologies, including AR. With the continuous growth of organized gaming communities, there is a higher focus on improving player involvement through immersive and interactive experiences. In 2025, Riyadh, Saudi Arabia, held the Esports World Cup, drawing over 2,000 players from over 100 nations who battled in 25 esports titles, backed by a historic $70 million prize pool. This significant occasion demonstrated the Kingdom’s growing importance in the international gaming scene while also underlining the increasing demand for creative and competitive entertainment options. AR gaming perfectly fits these trends, providing players the chance to integrate digital content with real-life interactions, thus enhancing engagement levels. The rising appeal of streaming, multiplayer platforms, and gaming festivals throughout Saudi Arabia is resulting in a progressive gaming culture focused on immersive experiences.

Saudi Arabia Augmented Reality Gaming Market Segmentation:

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

Component Insights:

• Software 
• Hardware 

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

Technology Insights:

• RFID
• GPS
• Mobile Tracking 
• Others

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes RFID, GPS, mobile tracking, and others.

Device Insights:

• Mobiles 
• HMDs 
• Smart Glasses

A detailed breakup and analysis of the market based on the device have also been provided in the report. This includes mobiles, HMDs, and smart glasses.

Game Type Insights:

• Racing Games
• Adventure Games
• Fighting Games 
• Shooting Games
• Mystery Thriller Games 
• Puzzle Games 
• Science Fiction Games 
• Others

A detailed breakup and analysis of the market based on the device have also been provided in the report. This includes racing games, adventure games, fighting games, shooting games, mystery thriller games, puzzle games, science fiction games, 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 Augmented Reality Gaming Market News:

• August 2025: Saudi VC firm Impact46 announced investments exceeding $6.6 million in five gaming studios, including Fahy, NJD, Game Cooks, Starvania, and Alpaka, under its $40 million Gaming Fund. This move expands their portfolio, which also includes investments in Spoilz and Spekter Games. The strategy aligns with Saudi Arabia's Vision 2030 to position the Kingdom as a global gaming hub, fostering local innovation and content creation.
• November 2024: Saudi Arabia's gaming community celebrated the official launch of Pokémon Go in the Kingdom with over 5,000 fans attending an event at Boulevard City. The game, which used augmented reality, became a significant part of the local culture, with a passionate fan base, including a 500-member strong community in Pokémon Go Saudi.
• August 2024: Tuwaiq Academy, in partnership with Meta, launched Saudi Arabia’s first diploma in game development and virtual worlds. The program, which covered game development, VR/AR technologies, and 3D modeling, offered over 800 training hours and was accredited by the Technical and Vocational Training Corporation. This initiative aimed to empower Saudi talent and position the Kingdom as a global leader in digital technologies.

Saudi Arabia Augmented Reality Gaming 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 augmented reality gaming market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia augmented reality gaming 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 augmented reality gaming 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.