KSA Industrial Internet of Things Market Outlook to 2028

KSA Industrial Internet of Things Market Overview

In recent years, the KSA industrial internet of things market has experienced substantial growth, this is reflected by the global internet of things market reached a valuation of USD 6.38 billion in 2023

Key players in the KSA industrial internet of things IIo T market include Saudi Aramco, Saudi Basic Industries Corporation (SABIC), Siemens Saudi Arabia, and Schneider Electric Saudi Arabia. These companies dominate the market due to their extensive industry experience, advanced technological solutions, and strong distribution networks.

The Eastern Province is the leading region in the KSA IIo T market, attributed to its robust industrial base, advanced infrastructure, and high concentration of oil and gas facilities.

In the first three quarters of 2023, Saudi Aramco’s performance was notable, with revenues reaching USD 80 billion and a significant 12% increase in net profit. Saudi Aramco has solidified its leadership in the industry.

KSA Industrial Internet of Things Market Segmentation

The KSA Industrial Internet of Things Market can be segmented based on several factors. Like product, application, and region.

By Product Type: KSA Industrial Internet of Things Market is segmented by product type into IIo T Hardware, IIo T Software, and IIo T Services. In 2023, IIo T Software held the dominated market share, underscored by the rising demand for integrated solutions that enhance data analytics and management capabilities across industries. The dominance of IIo T Software is driven by the need for efficient real-time data processing and actionable insights, which are critical in optimizing operational processes and improving decision-making in Saudi industries.

By Application: KSA Industrial Internet of Things Market is segmented by application into Manufacturing, Energy Management, Healthcare, Transportation, and Others. In 2023, Manufacturing emerged as the most dominated segment, holding a significant market share. The dominance in manufacturing is driven by the extensive adoption of IIo T technologies for automation, predictive maintenance, and efficiency improvements. This surge in adoption is further supported by Saudi Arabia's strong push towards industrial diversification and modernization under its Vision 2030 initiative.

By Region: KSA Industrial Internet of Things Market is segmented by region into north, south, east & west regions. In 2023, the East region held the largest market share, largely due to its heavy concentration of oil and gas industries which are early adopters of IIo T solutions. This region’s dominance is supported by significant investments in digital infrastructure and the strategic location of Saudi Arabia's major petroleum and natural gas facilities, which utilize IIo T for enhanced operational efficiency and safety measures.

KSA Industrial Internet of Things Market Competitive Landscape

Company

Year Established

Headquarters

Siemens AG

1847

Munich, Germany

General Electric

1892

Boston, USA

Schneider Electric

1836

Rueil-Malmaison, France

Honeywell International Inc.

1906

Charlotte, USA

ABB Ltd

1883

Zurich, Switzerland

Siemens: In 2024, Siemens announced the expansion of its digital industries software portfolio in Saudi Arabia, with new solutions tailored for local industries, leading to a projected 25% increase in efficiency for users.

General Electric’s Power Digital Solutions: GE launched a new suite of digital power management tools in Saudi Arabia in 2023, which has been adopted by 30% of the power plants in the region to optimize their operations.

KSA Industrial Internet of Things Industry Analysis

KSA Industrial Internet of Things Market Growth Drivers:

Enhanced Operational Efficiency: In 2023, companies using IIo T technologies reported a reduction in operational costs by 20%, due to improved asset management and reduced equipment downtime. This has accelerated investments in IIo T solutions among Saudi manufacturers and energy providers.

Smart City Projects: As of 2024, Saudi Arabia has committed USD 133.30 billion towards smart city developments. IIo T integration in these projects facilitates efficient urban management, including smart utilities and traffic systems, driving further market growth.

Increase in Oil Production: The Saudi government's plans to increase oil production capacity to 13 million barrels per day by 2027 has spurred investments in IIo T for real-time monitoring and predictive maintenance, leading to more efficient and safer operations.

KSA Industrial Internet of Things Market Challenges:

Cybersecurity Risks: In 2024, there was a 30% increase in cyber attacks targeting industrial networks in Saudi Arabia. Companies are now compelled to increase their cybersecurity budgets to safeguard their IIo T infrastructures.

Complex Integration with Existing Systems: For many Saudi industries, integrating advanced IIo T systems with outdated existing infrastructure has led to a doubling of initial project costs, slowing down technology adoption rates.

KSA Industrial Internet of Things Market Government Initiatives:

National Industrial Development and Logistics Program (NIDLP): Launched with an investment of SAR 1 trillion, this initiative aims to transform Saudi Arabia into a leading industrial powerhouse and global logistics hub by 2030, heavily incorporating IIo T technologies.

IIo T Innovation Hubs: In partnership with leading tech companies, the Saudi government initiated the creation of three IIo T innovation hubs in Riyadh, Jeddah, and Dhahran in 2024, aimed at fostering innovation and development in Io T technologies.

KSA Industrial Internet of Things Future Market Outlook

The KSA IIo T market is expected to grow significantly by 2028 with a respectable CAGR during the period of 2023-2028, driven by increasing technological advancements and expansion of smart manufacturing initiatives.

Future Market Trends:

Expansion of AI in IIo T: By 2029, it is projected that AI integration in IIo T systems will lead to a 50% reduction in predictive maintenance costs, significantly boosting the operational efficiency of Saudi industries.

Green Io T Initiatives: By 2029, green Io T solutions are expected to reduce energy usage by up to 30% in industrial applications, aligning with Saudi Arabia’s sustainability goals under Vision 2030.
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