Saudi Arabia Smart Manufacturing Market

Market Overview:

Saudi Arabia smart manufacturing market size reached USD 3,324.9 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 10,974.7 Million by 2033, exhibiting a growth rate (CAGR) of 14.2% during 2025-2033. The increasing trend towards adopting smart manufacturing practices across the globe, the rising emphasis on industrial and manufacturing sector development, and the integration of 5G technology represent some of the key factors driving the market.

Smart manufacturing represents a revolutionary approach in the industrial sector, integrating advanced technologies to create highly intelligent and automated production systems. This concept encompasses various types of technologies, such as Artificial Intelligence (AI), the Internet of Things (IoT), robotics, big data analytics, and cloud computing. These technologies enable real-time data analysis, predictive maintenance, and enhanced decision-making capabilities. Smart manufacturing systems offer a myriad of advantages, including improved efficiency, reduced operational costs, increased production quality, and enhanced flexibility in production processes. By leveraging these technologies, manufacturers can gain a significant competitive edge, fostering innovation and sustainability in their operations. The adaptability of smart manufacturing lies in its ability to cater to diverse industries, making it a versatile and transformative tool for the modern industrial landscape.

Saudi Arabia Smart Manufacturing Market Trends:

Vision 2030 and Industrial Diversification Goals

Saudi Arabia’s Vision 2030 is a significant driver for the smart manufacturing market, as the Kingdom is seeking to diversify its economy beyond oil and build a robust industrial base. The government is heavily investing in advanced manufacturing technologies, such as automation, robotics, and artificial intelligence (AI), to modernize traditional industries. As per the ITA, in Saudi Arabia, expenditure on AI was anticipated to exceed USD 720 Million in 2024 and is set to achieve USD 1.9 Billion by 2027, expanding at a compound annual growth rate (CAGR) of 40%. These initiatives are creating new opportunities for manufacturers to improve efficiency, reduce costs, and enhance global competitiveness. Government programs are supporting technology integration in factories. This strong top-down encouragement from Vision 2030 ensures that industries adopt smart solutions at scale, driving sustained growth of smart manufacturing across sectors, such as automotive, chemicals, electronics, and consumer goods in Saudi Arabia.

Integration of Internet of Things (IoT) and Connected Devices

The integration of IoT and connected devices in manufacturing is a key factor propelling the market growth in Saudi Arabia. As per the IMARC Group, the Saudi Arabia IoT in manufacturing market size reached USD 612.03 Million in 2024. IoT facilitates real-time surveillance of manufacturing operations, anticipatory upkeep, and efficient supply chain management. By connecting machines, sensors, and enterprise systems, manufacturers can gain valuable insights into equipment performance, energy usage, and operational bottlenecks. This data-driven approach helps optimize resources, reduce downtime, and improve decision-making. Sectors like petrochemicals, food processing, and construction materials are actively adopting IoT to enhance transparency and efficiency. Supported by the Kingdom’s digital transformation agenda, the rapid deployment of connected technologies is making factories smarter and more agile.

Growth of Industrial 4.0 Practices

Industry 4.0 adoption is gaining momentum in Saudi Arabia, with manufacturers embracing digital twins, AI-driven analytics, and advanced manufacturing execution systems. In August 2024, Aver launched an innovative five-year project with the Saudi Arabian government to create digital twin platforms for Riyadh and four additional major cities. Utilizing its cutting-edge cloud technology, Naver would generate highly precise 3D models of cities, achieving accuracy within 10cm. Industry 4.0 practices are helping companies enhance flexibility, streamline workflows, and create customized production systems tailored to evolving consumer and industrial demands. The shift towards Industry 4.0 is also enabling businesses to align with global supply chain standards, increase productivity, and compete effectively in international markets. Training initiatives and collaborations with universities are building the necessary workforce skills to handle advanced digital manufacturing technologies.

Key Growth Drivers of Saudi Arabia Smart Manufacturing Market:

Rising Adoption of Automation and Robotics

Automation and robotics are transforming Saudi Arabia’s manufacturing sector by improving precision, consistency, and productivity. Industries, such as automotive, petrochemicals, and packaging, are increasingly turning to robotic systems for tasks like assembly, inspection, and material handling. With rising labor costs and a focus on reducing operational inefficiencies, companies are adopting robotic solutions to maintain competitiveness. Government incentives and partnerships with global technology leaders are further accelerating the deployment of automation systems. As robotics is becoming more cost-effective and advanced, Saudi manufacturers are leveraging it to minimize errors, boost output, and meet international quality standards. This trend is significantly contributing to the rapid growth of the smart manufacturing market in Saudi Arabia.

Strong Government and Private Sector Investments

Massive investments from both the government and private sector are accelerating the development of smart manufacturing in Saudi Arabia. The Kingdom is funding large-scale industrial projects and innovation hubs to support technology-driven industries while creating long-term value for its economy. Public-private partnerships are bringing in global expertise while nurturing local innovation and workforce development. Giga-projects, such as NEOM and The Line, are designed with smart and sustainable manufacturing at their core, acting as testbeds for cutting-edge solutions. Venture capital is also flowing into startups working on robotics, automation, and IoT solutions. These sustained investments are helping build infrastructure, advanced skills, and strong technology ecosystems that directly contribute to the rapid adoption of smart manufacturing practices across industries.

Increasing Demand for Operational Efficiency and Cost Reduction

Saudi manufacturers are under constant pressure to improve efficiency and reduce operational costs to remain competitive in both regional and global markets. Smart manufacturing solutions provide immediate data analysis, forecast maintenance, and process automation that help reduce energy consumption, minimize downtime, and optimize resource utilization. For industries like petrochemicals, steel, and cement, where margins are tight and energy costs are high, adopting smart technologies delivers significant cost savings and productivity gains. Moreover, predictive systems reduce equipment failures, extend asset life, and ensure long-term financial sustainability. Companies are also integrating enhanced decision-making tools to optimize supply chains and logistics. This growing demand for efficiency and cost reduction is making smart manufacturing an indispensable driver of Saudi Arabia’s industrial transformation journey.

Saudi Arabia Smart Manufacturing 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, 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 Execution Systems
• Programmable Logic Controller
• Enterprise Resource Planning
• SCADA
• Discrete Control Systems
• Human Machine Interface
• Machine Vision
• 3D Printing
• Product Lifecycle Management
• Plant Asset Management

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes machine execution systems, programmable logic controller, enterprise resource planning, SCADA, discrete control systems, human machine interface, machine vision, 3D printing, product lifecycle management, and plant asset management.

End Use Insights:

• Automotive
• Aerospace and Defense
• Chemicals and Materials
• Healthcare
• Industrial Equipment
• Electronics
• Food and Agriculture
• Oil and Gas
• Others

The report has provided a detailed breakup and analysis of the market based on the end use. This includes automotive, aerospace and defense, chemicals and materials, healthcare, industrial equipment, electronics, food and agriculture, oil and gas, 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 in the market. 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 Smart Manufacturing Market News:

• August 2025: Desert Technologies, alongside AlKhorayef Industries, revealed the establishment of a strategic cooperation agreement aimed at enhancing Saudi Arabia's capacity in smart infrastructure. The goal of this collaboration was to merge the knowledge of the two leading companies to provide cutting-edge, top-notch solutions that could address the increasing demands of the industrial and smart infrastructure industries. This strategic alliance was anticipated to create new avenues for domestic manufacturing, technology exchange, and employment generation.
• May 2025: The Riyadh International Industry Week 2025 was conducted, marking an important milestone in Saudi Arabia's industrial progress, with more than 500 exhibitors from 20 nations coming together to foster collaboration and innovations in vital sectors. Featuring four key exhibitions- Plastics & Petrochemicals, Printing and Packaging, Smart Manufacturing, and Smart Logistics consolidated in one location, the event provided a cohesive platform for highlighting innovative technologies and promoting strategic alliances. Participants examined ways to incorporate smart manufacturing technologies and enhance industrial logistics.

Saudi Arabia Smart 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 smart manufacturing market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia smart 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 smart 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.