Saudi Arabia 5G Core Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Saudi Arabia 5G Core Market, valued at USD 150 million, is propelled by digital transformation, IoT expansion, and government initiatives, aiming for 100% coverage by 2033.

Region:Middle East

Author(s):Rebecca

Product Code:KRAA5706

Pages:98

Published On:January 2026

About the Report

Base Year 2025

Saudi Arabia 5G Core Market Overview

  • The Saudi Arabia 5G Core Market is valued at USD 150 million, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for high-speed internet, the proliferation of IoT devices, the government's commitment to digital transformation initiatives under Vision 2030, massive investments in smart cities such as NEOM, and rising demand for ultra-high-speed low-latency connectivity across healthcare, manufacturing, energy, transportation, and telecommunications. The expansion of 5G infrastructure is also supported by investments from telecommunications companies, public-private partnerships, and the rising adoption of smart technologies across various sectors.
  • Key cities dominating the market include Riyadh, Jeddah, and Dammam. Riyadh, as the capital, serves as a central hub for technological advancements and government initiatives. Jeddah and Dammam are also significant due to their strategic locations and economic activities, which foster a conducive environment for 5G deployment and innovation in telecommunications.
  • The National 5G Strategy, issued by the Communications, Space & Technology Commission in 2021, aims to enhance the country's telecommunications infrastructure by achieving 100% 5G population coverage with speeds exceeding 100 Mbps. This strategy requires telecom operators to meet specific rollout milestones, including nationwide deployment targets and compliance with spectrum allocation standards, ensuring widespread access to high-speed internet and fostering economic growth through digital services.
Saudi Arabia 5G Core Market Size

Saudi Arabia 5G Core Market Segmentation

By Network Architecture:

Saudi Arabia 5G Core Market segmentation by Network Architecture.

The market is segmented into Non-Standalone (NSA) and Standalone (SA) architectures. The Non-Standalone architecture is currently dominating the market due to its ability to leverage existing 4G infrastructure, allowing for a quicker rollout of 5G services. This approach is particularly appealing to telecom operators looking to enhance their service offerings without significant upfront investments. The Standalone architecture, while offering greater efficiency and lower latency, is still in the early stages of adoption as operators gradually transition to fully independent 5G networks, with recent launches such as Zain KSA's SA network in Riyadh and Jeddah.

By Component:

Saudi Arabia 5G Core Market segmentation by Component.

The components of the market include Hardware, Software, and Services. Hardware is the leading segment, driven by the demand for advanced networking equipment and infrastructure necessary for 5G deployment, including base stations, antennas, and network equipment. The increasing complexity of network requirements and the need for high-performance devices are propelling hardware sales. Software solutions are also gaining traction as operators seek to optimize network management and enhance user experiences through virtualized service-based architectures supporting network slicing and cloud-native operations. Services, including installation and maintenance, are essential for supporting the growing infrastructure but currently represent a smaller share of the market.

Saudi Arabia 5G Core Market Competitive Landscape

The Saudi Arabia 5G Core Market is characterized by a dynamic mix of regional and international players. Leading participants such as STC Group, Mobily, Zain KSA, Ericsson, Nokia, Huawei, Cisco Systems, Qualcomm, Samsung Electronics, NEC Corporation, Fujitsu, Intel Corporation, Oracle Corporation, Juniper Networks, Keysight Technologies contribute to innovation, geographic expansion, and service delivery in this space.

STC Group

1998

Riyadh, Saudi Arabia

Mobily

2004

Riyadh, Saudi Arabia

Zain KSA

2008

Riyadh, Saudi Arabia

Ericsson

1876

Stockholm, Sweden

Nokia

1865

Espoo, Finland

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate (%)

Network Coverage Area (km²)

5G Base Station Count

Enterprise Customer Base

Average Revenue Per User (ARPU) - USD

Saudi Arabia 5G Core Market Industry Analysis

Growth Drivers

  • Increasing Demand for High-Speed Internet:The demand for high-speed internet in Saudi Arabia is projected to reach 25 million broadband subscriptions in the future, driven by a growing population and digital consumption. The World Bank reported that internet penetration in the country is around 99%, indicating a strong market for 5G services. This surge in demand is further fueled by the increasing reliance on online services, e-commerce, and remote work, necessitating faster and more reliable internet connectivity.
  • Expansion of IoT Applications:The Internet of Things (IoT) market in Saudi Arabia is expected to grow to $15 billion in the future, with significant investments in smart devices and applications. The government’s Vision 2030 initiative emphasizes the integration of IoT in various sectors, including healthcare, transportation, and energy. This expansion is anticipated to drive the demand for 5G core networks, which are essential for supporting the massive data traffic generated by IoT devices and applications.
  • Government Initiatives for Digital Transformation:The Saudi government has allocated $2 billion for digital transformation initiatives as part of its Vision 2030 plan. This includes investments in telecommunications infrastructure to enhance connectivity and support 5G deployment. The National Digital Transformation Strategy aims to improve the digital economy, which is projected to contribute 5% to the GDP in the future, further driving the adoption of 5G technologies across various sectors.

Market Challenges

  • High Deployment Costs:The initial costs for deploying 5G infrastructure in Saudi Arabia are estimated to exceed $3 billion in the future. This includes expenses related to upgrading existing networks, acquiring new technology, and establishing necessary infrastructure. These high costs can deter smaller telecommunications companies from entering the market, limiting competition and slowing down the overall rollout of 5G services across the country.
  • Limited Consumer Awareness:Despite the rapid advancements in technology, consumer awareness regarding 5G benefits remains low, with only 35% of the population familiar with its potential advantages. This lack of understanding can hinder adoption rates, as consumers may be hesitant to invest in 5G-enabled devices or services. Educational campaigns and outreach programs are essential to bridge this knowledge gap and stimulate demand for 5G services in the market.

Saudi Arabia 5G Core Market Future Outlook

The future of the 5G core market in Saudi Arabia appears promising, driven by ongoing government support and technological advancements. As the country continues to invest in digital infrastructure, the integration of 5G technology is expected to enhance connectivity and support various sectors, including healthcare and smart cities. Additionally, the rise of edge computing and AI in network management will further optimize 5G networks, ensuring efficient service delivery and improved user experiences in the coming years.

Market Opportunities

  • Growth in Smart City Projects:The Saudi government is investing $700 million in smart city initiatives, creating opportunities for 5G deployment. These projects will leverage 5G technology to enhance urban infrastructure, improve public services, and promote sustainability, driving demand for advanced telecommunications solutions.
  • Development of 5G-Enabled Applications:The market for 5G-enabled applications is projected to reach $5 billion in the future, driven by innovations in sectors like healthcare and entertainment. This growth presents significant opportunities for developers and technology providers to create applications that utilize the high-speed capabilities of 5G, enhancing user experiences and operational efficiencies.

Scope of the Report

SegmentSub-Segments
By Network Architecture

Non-Standalone (NSA)

Standalone (SA)

By Component

Hardware

Software

Services

By Communication Infrastructure

G Radio Access Networks

Transport Networks

G Core Network

By Deployment Model

On-Premises Dedicated Network

Operator-Managed / Hosted Private Network

Hybrid / Shared Private Network

Public Cloud-Hosted Private Network

By Vertical

Enterprise & Corporate

Residential

Industrial

Transportation & Logistics

Smart City

Energy & Utilities

By Spectrum

Sub-6 GHz

mmWave

By Region

Northern and Central Region (Riyadh)

Eastern Region (Dammam, Dhahran)

Western Region (Jeddah, Makkah, Madinah)

Southern Region (Tabuk)

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Saudi Communications and Information Technology Commission)

Telecommunications Service Providers

Network Equipment Manufacturers

Infrastructure Development Companies

Technology Solution Providers

Telecom Industry Associations

Financial Institutions and Banks

Players Mentioned in the Report:

STC Group

Mobily

Zain KSA

Ericsson

Nokia

Huawei

Cisco Systems

Qualcomm

Samsung Electronics

NEC Corporation

Fujitsu

Intel Corporation

Oracle Corporation

Juniper Networks

Keysight Technologies

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Saudi Arabia 5G Core Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Saudi Arabia 5G Core Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Saudi Arabia 5G Core Market Analysis

3.1 Growth Drivers

3.1.1 Increasing demand for high-speed internet
3.1.2 Expansion of IoT applications
3.1.3 Government initiatives for digital transformation
3.1.4 Rising investments in telecommunications infrastructure

3.2 Market Challenges

3.2.1 High deployment costs
3.2.2 Limited consumer awareness
3.2.3 Regulatory hurdles
3.2.4 Competition from alternative technologies

3.3 Market Opportunities

3.3.1 Growth in smart city projects
3.3.2 Development of 5G-enabled applications
3.3.3 Partnerships with technology providers
3.3.4 Expansion into rural areas

3.4 Market Trends

3.4.1 Increased focus on network slicing
3.4.2 Adoption of edge computing
3.4.3 Integration of AI in network management
3.4.4 Growth of private 5G networks

3.5 Government Regulation

3.5.1 Spectrum allocation policies
3.5.2 Infrastructure sharing regulations
3.5.3 Data privacy laws
3.5.4 Compliance with international standards

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Saudi Arabia 5G Core Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Saudi Arabia 5G Core Market Segmentation

8.1 By Network Architecture

8.1.1 Non-Standalone (NSA)
8.1.2 Standalone (SA)

8.2 By Component

8.2.1 Hardware
8.2.2 Software
8.2.3 Services

8.3 By Communication Infrastructure

8.3.1 5G Radio Access Networks
8.3.2 Transport Networks
8.3.3 5G Core Network

8.4 By Deployment Model

8.4.1 On-Premises Dedicated Network
8.4.2 Operator-Managed / Hosted Private Network
8.4.3 Hybrid / Shared Private Network
8.4.4 Public Cloud-Hosted Private Network

8.5 By Vertical

8.5.1 Enterprise & Corporate
8.5.2 Residential
8.5.3 Industrial
8.5.4 Transportation & Logistics
8.5.5 Smart City
8.5.6 Energy & Utilities

8.6 By Spectrum

8.6.1 Sub-6 GHz
8.6.2 mmWave

8.7 By Region

8.7.1 Northern and Central Region (Riyadh)
8.7.2 Eastern Region (Dammam, Dhahran)
8.7.3 Western Region (Jeddah, Makkah, Madinah)
8.7.4 Southern Region (Tabuk)

9. Saudi Arabia 5G Core Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate (%)
9.2.4 Network Coverage Area (km²)
9.2.5 5G Base Station Count
9.2.6 Enterprise Customer Base
9.2.7 Average Revenue Per User (ARPU) - USD
9.2.8 Network Uptime / Reliability (%)
9.2.9 Capital Expenditure (CAPEX) - USD Million
9.2.10 Innovation Index (Patents / R&D Investment)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 STC Group
9.5.2 Mobily
9.5.3 Zain KSA
9.5.4 Ericsson
9.5.5 Nokia
9.5.6 Huawei
9.5.7 Cisco Systems
9.5.8 Qualcomm
9.5.9 Samsung Electronics
9.5.10 NEC Corporation
9.5.11 Fujitsu
9.5.12 Intel Corporation
9.5.13 Oracle Corporation
9.5.14 Juniper Networks
9.5.15 Keysight Technologies

10. Saudi Arabia 5G Core Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Communications and Information Technology
10.1.2 Ministry of Health
10.1.3 Ministry of Interior
10.1.4 Ministry of Education

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Telecommunications Sector
10.2.2 Healthcare Sector
10.2.3 Transportation Sector
10.2.4 Smart City Initiatives

10.3 Pain Point Analysis by End-User Category

10.3.1 Telecommunications Providers
10.3.2 Healthcare Providers
10.3.3 Government Agencies
10.3.4 Industrial Users

10.4 User Readiness for Adoption

10.4.1 Awareness Levels
10.4.2 Infrastructure Readiness
10.4.3 Training and Support Needs
10.4.4 Investment Willingness

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Performance Metrics
10.5.2 User Satisfaction Levels
10.5.3 Scalability of Solutions
10.5.4 Future Use Cases

11. Saudi Arabia 5G Core Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Value Proposition Development

1.3 Revenue Streams Analysis

1.4 Cost Structure Evaluation

1.5 Key Partnerships Exploration

1.6 Customer Segmentation

1.7 Channels Strategy


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Audience Identification

2.4 Communication Strategy

2.5 Digital Marketing Tactics


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-Ups

3.3 Online Distribution Channels

3.4 Logistics and Supply Chain Management


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitor Pricing Comparison

4.4 Value-Based Pricing Strategies


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments Analysis

5.3 Emerging Trends Identification

5.4 Future Demand Projections


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-Sales Service

6.3 Customer Feedback Mechanisms

6.4 Community Engagement Initiatives


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Customer-Centric Innovations

7.4 Competitive Differentiation


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Initiatives

8.3 Distribution Setup

8.4 Training and Development


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging Strategies

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines for Implementation


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships

12.2 Risk Mitigation Strategies


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-Term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of government reports and publications on 5G infrastructure development in Saudi Arabia
  • Review of industry white papers and market analysis reports from telecommunications authorities
  • Examination of academic journals and conference proceedings related to 5G technology and its applications

Primary Research

  • Interviews with key stakeholders in telecommunications, including network operators and service providers
  • Surveys targeting technology adoption specialists and IT managers in various sectors
  • Field interviews with regulatory bodies and industry experts to understand policy impacts

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including market reports and expert opinions
  • Triangulation of quantitative data with qualitative insights from industry interviews
  • Sanity checks through expert panel reviews to ensure data accuracy and relevance

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of the overall telecommunications market size in Saudi Arabia as a baseline
  • Segmentation of the 5G core market by application areas such as IoT, smart cities, and enhanced mobile broadband
  • Incorporation of government initiatives and investments in 5G technology as growth drivers

Bottom-up Modeling

  • Collection of data on current 5G core infrastructure deployments and associated costs
  • Estimation of revenue generation potential based on service pricing models and user adoption rates
  • Volume x cost analysis for various service offerings within the 5G core market

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating economic indicators, technology adoption rates, and consumer demand
  • Scenario modeling based on varying levels of regulatory support and market competition
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Telecom Operators100Network Engineers, Product Managers
Enterprise Users of 5G80IT Directors, Operations Managers
Government Regulatory Bodies50Policy Makers, Regulatory Analysts
Technology Vendors70Sales Executives, Technical Support Managers
Research Institutions60Academic Researchers, Industry Analysts

Frequently Asked Questions

What is the current value of the Saudi Arabia 5G Core Market?

The Saudi Arabia 5G Core Market is valued at approximately USD 150 million, driven by the increasing demand for high-speed internet, IoT proliferation, and government initiatives under Vision 2030 aimed at enhancing digital infrastructure.

Which cities are leading in the Saudi Arabia 5G Core Market?

What is the National 5G Strategy in Saudi Arabia?

What are the main components of the Saudi Arabia 5G Core Market?

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