Saudi Arabia Telecom Services Market Overview, 2030

Saudi Arabia's Vision 2030, which was first announced in 2016, has brought about a significant transformation in the country's telecommunications environment by positioning infrastructure investment and growth as key drivers of economic diversification. According to the government, digital infrastructure is a national asset necessary for moving from an oil-based economy to one powered by technology. Under the Shareek program, state-led capital raised via a US$4 billion PIF bond issue supports large-scale infrastructure projects, including US$9 billion in telecommunications network development by stc Group, reinforcing the sector's role in Vision 2030. The Communications, Space and Technology Commission CITC has pushed for regulatory alignment in order to meet the national goals for the deployment of 5G and fiber, which require that two-thirds of homes in urban areas and ninety percent in heavily populated cities be connected. The results of that commitment have won numerous awards. With over 4,700 locations in 50 towns, Zain KSA introduced the largest 5G network in the area in 2019, receiving worldwide acclaim for its ""fixed wireless 5G, infrastructure deployment, and internet speeds"". In the interim, e& Group committed to invest US$6 billion in capex over the course of two years in order to improve technology infrastructure, increase accessibility, and lower consumer expenses. Mobile connectivity supports programs in government services, fintech, e-health, and smart education, demonstrating that its influence goes far beyond telecommunications. The intersection of telecom investment and urban innovation is highlighted by complementary public-private partnerships, such as the partnership between stc and NEOM, Red Sea Global's carbon-neutral 5G, and multicultural smart-city pilots. Saudi Arabia is now experiencing an era of unparalleled telecom investment, regulatory change, and technological aspiration thanks to Vision 2030. The Kingdom is establishing a smart tech hub to support its transition to a knowledge-based economy by using calculated investment, aggressive rollout goals, and ecosystem collaborations.

According to the research report, ""Saudi Arabia Telecom Services Market Overview, 2030,"" published by Bonafide Research, the Saudi Arabia Telecom Services market is anticipated to grow at more than 5.10% CAGR from 2025 to 2030. By implementing cutting-edge compliance measures and encouraging the localization of telecom technologies, the Communications, Space, and Technology Commission CITC of Saudi Arabia has been instrumental in propelling the Kingdom's digital revolution. In 2021, CITC became one of the most cutting-edge regulators in the world by moving from a conventional telecom regulator to a modern digital authority as part of its Vision 2030 plan, gaining ITU regulatory status for the fifth generation G5. Through mechanisms such as regulatory sandboxes, decreased licensing fees, and longer validity periods, CITC's regulatory changes have given telecom companies the ability to test and implement next-generation technologies like 5G, IoT, and AI, with an emphasis on flexibility and innovation. One notable achievement in CITC's plan is the Spectrum Outlook 2025, which seeks to free up more than 23 GHz of spectrum in order to support a range of services while also fostering efficiency and inclusive access, making Saudi Arabia a leader in the use of millimeter-wave bands and Wi-Fi 6E. The regulatory environment has been significantly expanded by CITC's new Telecommunications and Information Technology Act, which includes ICT services and establishes mandatory localization, cybersecurity standards, and harsher consequences for noncompliance. These changes guarantee that data protection and service quality are in line with international best practices, while also protecting the country's infrastructure. The CITC has launched projects to promote local innovation, such the Local Technology Guide, local R&D incentives, and co-development awards, which encourage collaboration between the public and private sectors. The goal of these programs is to foster independent skills in important digital domains. Furthermore, the establishment of the National Regulatory Committee promotes coordinated ICT policies among government organizations. CITC's initiatives are supporting Saudi Arabia's goal of becoming a worldwide digital leader while also modernizing regulatory structures. By using technology localization and compliance, CITC is fostering a telecom ecosystem that is secure, adaptive, and innovation-driven, all of which directly contributes to the nation's shift towards a knowledge-based economy.

Saudi Arabia's telecom services industry By Service Type is divided into Mobile Services voice, messaging, mobile broadband, Fixed Broadband Services, Enterprise/Managed Services cloud connectivity, data centers, MPLS, VPNs, IoT/M2M Services, OTT/Value Added Services and Other wholesale, satellite, etc.. Despite the fact that data-intensive mobile internet use is becoming more prevalent, particularly with the widespread rollout of 5G, voice and messaging are still crucial. Through initiatives under Vision 2030 that aim to extend high-speed internet to underserved areas, fixed broadband services have gained traction. Fixed-line speeds and reliability have significantly increased as a result of the National Fiber Network expansion, particularly in metropolitan and semi-urban regions. As organizations increasingly look for cloud connectivity, data center solutions, MPLS networks, and VPNs, the market for managed and enterprise services is changing. The government's efforts to promote smart governance and enable the digital economy, together with the private sector's digital revolution, are driving this need. Telecom companies are increasingly providing IoT and M2M machine-to-machine services, including platforms for smart cities, industrial automation, fleet management, and utility monitoring, particularly in industries like oil and logistics. The introduction of 5G has accelerated this market by making real-time, low-latency communication more feasible. As consumers move toward more customized and on-demand content, OTT over-the-top and value-added services like video streaming, cloud gaming, mobile payment solutions, and digital entertainment are becoming increasingly popular. In the meantime, other services like satellite communication, wholesale bandwidth, and international transit are essential for facilitating international connectivity, supporting defense communication, and connecting isolated regions. Strong investment, regulatory backing from the CITC, and alliances with major international tech corporations support these service sectors. As a group, they see to it that Saudi Arabia's telecom environment promotes the Vision 2030's objectives, national digital infrastructure, enterprise innovation, and personal communication.

Saudi Arabia telecom services by transmission technology are divided into wireless, wired, and satellite. The foundation of the nation's connectivity is built upon wireless technology, particularly mobile networks. Saudi Arabia has established itself as a leader in next-generation mobile networks thanks to its early adoption of 5G technology. Major carriers such as STC, Mobily, and Zain have extended their 5G footprint across major cities, enabling high-speed mobile broadband, IoT applications, and low-latency enterprise use cases. Wireless networks close connectivity gaps in isolated and rural locations where wired infrastructure is still lacking. Under the National Transformation Program, there has been a significant increase in the use of fiber optic networks, in particular, for wired transmission. The rise of FTTH Fiber-to-the-Home has greatly increased the speed and dependability of internet access for both residential and business customers. The Ministry of Communications and Information Technology MCIT oversees government-supported programs to connect schools, hospitals, and public facilities, ensuring that fiber penetration goes beyond urban areas. Wired technologies are still necessary for high-capacity enterprise needs, such cloud computing, data centers, and managed services. Due to its strategic importance in connecting the vast and frequently sparsely populated areas of Saudi Arabia, satellite communication is essential. Satellite transmission guarantees access to basic telecommunications services and emergency communication, particularly in distant desert regions and off-grid communities. The nation's goal of localizing satellite capabilities and strengthening national sovereignty in space communication is highlighted by the introduction of domestically produced satellites such SGS-1. Furthermore, satellite is essential for military, aviation, and maritime connectivity. In accordance with Vision 2030, Saudi Arabia is able to pursue digital inclusion, economic diversification, and leadership in emerging technologies thanks to the combined synergy of wireless, wired, and satellite technologies that make up a complete and robust telecom ecosystem.

The telecommunications market in Saudi Arabia by end user is divided into residential B2C, commercial B2B, and governmental B2G sectors, each of which has unique demands and development drivers influenced by national development objectives and the evolution of digital technologies. Due to the high usage of smartphones and the growing demand for mobile broadband, OTT services, and digital entertainment, the residential sector B2C has the greatest user base. Families now have high-speed internet access for online learning, streaming, gaming, and smart home integration thanks to the widespread deployment of 5G and better FTTH coverage. Customers are also embracing the value-added digital products and bundled services provided by major operators such STC, Mobily, and Zain. Telecom services are essential to supporting the Kingdom's expanding entrepreneurial ecosystem and private sector in the business-to-business B2B arena. To improve operational efficiency and digital transformation, businesses are increasingly turning to managed services like data centers, cloud connectivity, unified communications, MPLS networks, and cybersecurity. The demand is particularly high in industries like retail, banking, logistics, and manufacturing, where dependable and scalable telecommunications infrastructure facilitates real-time data processing, automation, and international operations. Telecom firms are actively courting SMEs with customized plans to help them transition to the cloud and onboard digitally. The government user group is crucial to achieving Vision 2030's goals, which include smart governance, e-health, digital education, and the digitalization of public services. Telecom infrastructure is used by government bodies for secure data transmission, digital identity systems, smart city development, and national connectivity initiatives. In this area, high standards of compliance, cybersecurity, and localization are rigorously enforced to safeguard data and sovereignty. The government's dual role as regulator and consumer of telecom services fosters innovation and establishes standards for service quality, inclusivity, and resilience. These user groups make up the basis of Saudi Arabia's digitally empowered society and economy.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Telecom Services Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Service Type
• Mobile Services (voice, messaging, mobile broadband)
• Fixed Broadband Services
• Enterprise/Managed Services (cloud connectivity, data centers, MPLS, VPNs)
• IoT/M2M Services
• OTT/Value Added Services
• Other (wholesale, satellite, etc.)

By Transmission Technology
• Wireless
• Wired
• Satellite

By End User
• Residential (B2C)
• Business (B2B)
• Government (B2G)