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Saudi Arabia artificial intelligence in manufacturing market Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

The Saudi Arabia AI in Manufacturing Market, valued at USD 49 million, grows with machine learning and cloud deployment leading, supported by government initiatives like NSDAI.

Region:Middle East

Author(s):Geetanshi

Product Code:KRAC4448

Pages:94

Published On:October 2025

About the Report

Base Year 2024

Saudi Arabia Artificial Intelligence in Manufacturing Market Overview

  • The Saudi Arabia Artificial Intelligence in Manufacturing Market is valued at USD 49 million, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of AI technologies to enhance operational efficiency, reduce costs, and improve product quality across various manufacturing sectors. The integration of AI in manufacturing processes has become essential for companies aiming to remain competitive in a rapidly evolving market environment .
  • Key cities such as Riyadh, Jeddah, and Dammam continue to dominate the market due to robust industrial infrastructure and government support for technological advancements. Riyadh, as the capital, serves as a hub for innovation and investment, while Jeddah and Dammam benefit from strategic locations and access to major ports, facilitating trade and technology transfer .
  • The National Strategy for Data and Artificial Intelligence (NSDAI), issued by the Saudi Data and Artificial Intelligence Authority (SDAIA) in 2020, aims to position the country as a leader in AI by promoting research, development, and adoption of AI technologies in sectors including manufacturing. The strategy includes significant funding, incentives, and regulatory frameworks to accelerate AI integration in industrial operations .
Saudi Arabia Artificial Intelligence in Manufacturing Market Size

Saudi Arabia Artificial Intelligence in Manufacturing Market Segmentation

By Technology Type:The technology type segmentation includes Machine Learning (ML), Computer Vision, Natural Language Processing (NLP), Robotics and Automation, Internet of Things (IoT) with AI Integration, Predictive Analytics, and Others. Among these,Machine Learningleads due to its widespread application in predictive maintenance, quality control, and process optimization. The growing demand for data-driven decision-making and automation in manufacturing processes significantly contributes to the expansion of this segment .

Saudi Arabia Artificial Intelligence in Manufacturing Market segmentation by Technology Type.

By Deployment Mode:The deployment mode segmentation includes Cloud-Based, On-Premises, and Hybrid Deployment.Cloud-Based deploymentis currently the most popular among manufacturers due to its scalability, cost-effectiveness, and ease of access to advanced AI tools and resources. This trend is driven by the increasing need for flexibility and the ability to leverage big data analytics in real-time .

Saudi Arabia Artificial Intelligence in Manufacturing Market segmentation by Deployment Mode.

Saudi Arabia Artificial Intelligence in Manufacturing Market Competitive Landscape

The Saudi Arabia Artificial Intelligence in Manufacturing Market is characterized by a dynamic mix of regional and international players. Leading participants such as Siemens AG, IBM Corporation, Microsoft Corporation, ABB Ltd., Honeywell International Inc., Rockwell Automation, Inc., Schneider Electric SE, SAP SE, NVIDIA Corporation, and GE Digital drive innovation, geographic expansion, and service delivery in this space .

Siemens AG

1847

Munich, Germany

IBM Corporation

1911

Armonk, New York, USA

Microsoft Corporation

1975

Redmond, Washington, USA

ABB Ltd.

1988

Zurich, Switzerland

Honeywell International Inc.

1906

Charlotte, North Carolina, USA

Company

Establishment Year

Headquarters

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

Revenue Growth Rate

Market Penetration Rate

Customer Retention Rate

Pricing Strategy

Product Innovation Rate

Saudi Arabia Artificial Intelligence in Manufacturing Market Industry Analysis

Growth Drivers

  • Increasing Automation in Manufacturing Processes:The Saudi manufacturing sector is experiencing a significant shift towards automation, with investments reaching approximately SAR 12 billion in future. This trend is driven by the need for efficiency and productivity, as companies aim to reduce operational costs. The World Bank reported that automation can enhance productivity by up to 35%, making it a crucial driver for AI adoption in manufacturing, particularly in sectors like automotive and electronics.
  • Government Initiatives Promoting AI Adoption:The Saudi government has launched several initiatives to foster AI integration in manufacturing, including the National Industrial Development and Logistics Program (NIDLP). With an allocated budget of SAR 2 billion for AI projects, these initiatives aim to position Saudi Arabia as a leader in AI technology by 2030. This support is crucial for manufacturers looking to innovate and improve their processes through AI solutions.
  • Rising Demand for Predictive Maintenance Solutions:The predictive maintenance market in Saudi Arabia is projected to grow to SAR 3 billion by future, driven by the need to minimize downtime and maintenance costs. Companies are increasingly adopting AI-driven predictive analytics to foresee equipment failures, which can reduce maintenance costs by up to 30%. This demand is particularly strong in industries such as oil and gas, where operational efficiency is paramount.

Market Challenges

  • High Initial Investment Costs:The adoption of AI technologies in manufacturing often requires substantial upfront investments, estimated at around SAR 6 million for small to medium enterprises. This financial barrier can deter many manufacturers from implementing AI solutions, especially in a market where profit margins are already tight. The reluctance to invest in advanced technologies can hinder overall industry growth and innovation.
  • Lack of Skilled Workforce:The shortage of skilled professionals in AI and data analytics poses a significant challenge for the Saudi manufacturing sector. Currently, only 20% of the workforce possesses the necessary skills to implement and manage AI technologies effectively. This skills gap can lead to delays in AI adoption and limit the potential benefits that manufacturers could achieve through advanced technologies, impacting competitiveness.

Saudi Arabia Artificial Intelligence in Manufacturing Market Future Outlook

The future of AI in Saudi Arabia's manufacturing sector appears promising, driven by ongoing technological advancements and government support. As companies increasingly recognize the value of AI in enhancing operational efficiency, the integration of AI with IoT technologies is expected to gain momentum. Furthermore, the focus on sustainability will likely lead to the development of AI solutions that optimize resource usage, aligning with global environmental goals and enhancing competitiveness in the market.

Market Opportunities

  • Expansion of Smart Factories:The rise of smart factories presents a significant opportunity for AI integration, with an estimated investment of SAR 10 billion expected by future. These facilities leverage AI to enhance automation and data exchange, leading to improved efficiency and reduced operational costs, making them attractive for manufacturers seeking competitive advantages.
  • Collaboration with Tech Startups for Innovation:Collaborating with tech startups can drive innovation in AI applications within manufacturing. With over 250 AI startups emerging in Saudi Arabia, partnerships can facilitate the development of tailored solutions that address specific industry challenges, fostering a culture of innovation and enhancing the overall technological landscape.

Scope of the Report

SegmentSub-Segments
By Technology Type

Machine Learning (ML)

Computer Vision

Natural Language Processing (NLP)

Robotics and Automation

Internet of Things (IoT) with AI Integration

Predictive Analytics

Others

By Deployment Mode

Cloud-Based

On-Premises

Hybrid Deployment

By Company Size

Small and Medium Enterprises (SMEs)

Large Enterprises

By Functionality

Planning and Scheduling

Product Design and Customization

Workforce Management

By Application

Predictive Maintenance and Machine Monitoring

Quality Control and Inspection

Supply Chain Optimization

Process Automation

Energy Management

By Industry Vertical

Automotive Manufacturing

Chemical and Petrochemicals

Food and Beverage

Metals and Machinery

Electronics and Semiconductor

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Saudi Arabian General Investment Authority, Ministry of Industry and Mineral Resources)

Manufacturers and Producers

Technology Providers

Industry Associations (e.g., Saudi Arabian Industrial Development Fund)

Financial Institutions

Supply Chain and Logistics Companies

Automation and Robotics Firms

Players Mentioned in the Report:

Siemens AG

IBM Corporation

Microsoft Corporation

ABB Ltd.

Honeywell International Inc.

Rockwell Automation, Inc.

Schneider Electric SE

SAP SE

NVIDIA Corporation

GE Digital

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Saudi Arabia Artificial Intelligence in Manufacturing Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Saudi Arabia Artificial Intelligence in Manufacturing 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 Artificial Intelligence in Manufacturing Market Analysis

3.1 Growth Drivers

3.1.1 Increasing automation in manufacturing processes
3.1.2 Government initiatives promoting AI adoption
3.1.3 Rising demand for predictive maintenance solutions
3.1.4 Enhanced data analytics capabilities

3.2 Market Challenges

3.2.1 High initial investment costs
3.2.2 Lack of skilled workforce
3.2.3 Data privacy and security concerns
3.2.4 Resistance to change within traditional manufacturing sectors

3.3 Market Opportunities

3.3.1 Expansion of smart factories
3.3.2 Integration of AI with IoT technologies
3.3.3 Development of AI-driven supply chain solutions
3.3.4 Collaboration with tech startups for innovation

3.4 Market Trends

3.4.1 Adoption of AI for quality control
3.4.2 Use of machine learning for process optimization
3.4.3 Growth of AI in logistics and inventory management
3.4.4 Increasing focus on sustainability through AI solutions

3.5 Government Regulation

3.5.1 National AI Strategy initiatives
3.5.2 Standards for AI implementation in manufacturing
3.5.3 Incentives for AI research and development
3.5.4 Regulations on data usage and privacy

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Saudi Arabia Artificial Intelligence in Manufacturing Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Saudi Arabia Artificial Intelligence in Manufacturing Market Segmentation

8.1 By Technology Type

8.1.1 Machine Learning (ML)
8.1.2 Computer Vision
8.1.3 Natural Language Processing (NLP)
8.1.4 Robotics and Automation
8.1.5 Internet of Things (IoT) with AI Integration
8.1.6 Predictive Analytics
8.1.7 Others

8.2 By Deployment Mode

8.2.1 Cloud-Based
8.2.2 On-Premises
8.2.3 Hybrid Deployment

8.3 By Company Size

8.3.1 Small and Medium Enterprises (SMEs)
8.3.2 Large Enterprises

8.4 By Functionality

8.4.1 Planning and Scheduling
8.4.2 Product Design and Customization
8.4.3 Workforce Management

8.5 By Application

8.5.1 Predictive Maintenance and Machine Monitoring
8.5.2 Quality Control and Inspection
8.5.3 Supply Chain Optimization
8.5.4 Process Automation
8.5.5 Energy Management

8.6 By Industry Vertical

8.6.1 Automotive Manufacturing
8.6.2 Chemical and Petrochemicals
8.6.3 Food and Beverage
8.6.4 Metals and Machinery
8.6.5 Electronics and Semiconductor

9. Saudi Arabia Artificial Intelligence in Manufacturing 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 Market Penetration Rate
9.2.5 Customer Retention Rate
9.2.6 Pricing Strategy
9.2.7 Product Innovation Rate
9.2.8 Operational Efficiency
9.2.9 Customer Satisfaction Score
9.2.10 Return on Investment (ROI)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Siemens AG
9.5.2 IBM Corporation
9.5.3 Microsoft Corporation
9.5.4 ABB Ltd.
9.5.5 Honeywell International Inc.
9.5.6 Rockwell Automation, Inc.
9.5.7 Schneider Electric SE
9.5.8 SAP SE
9.5.9 NVIDIA Corporation
9.5.10 GE Digital

10. Saudi Arabia Artificial Intelligence in Manufacturing Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Industry and Mineral Resources
10.1.2 Ministry of Communications and Information Technology
10.1.3 Ministry of Investment

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in AI technologies
10.2.2 Budget allocation for digital transformation
10.2.3 Spending on training and development

10.3 Pain Point Analysis by End-User Category

10.3.1 Manufacturing inefficiencies
10.3.2 High operational costs
10.3.3 Supply chain disruptions

10.4 User Readiness for Adoption

10.4.1 Awareness of AI benefits
10.4.2 Availability of training programs
10.4.3 Infrastructure readiness

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of ROI
10.5.2 Scalability of AI solutions
10.5.3 Future use case identification

11. Saudi Arabia Artificial Intelligence in Manufacturing 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

1.6 Customer Segments

1.7 Channels


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

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


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


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 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from government bodies and trade associations in Saudi Arabia
  • Review of academic publications and white papers on AI applications in manufacturing
  • Examination of market trends and forecasts from reputable market research firms

Primary Research

  • Interviews with C-suite executives in manufacturing firms utilizing AI technologies
  • Surveys targeting operational managers in factories implementing AI solutions
  • Focus groups with industry experts and consultants specializing in AI and manufacturing

Validation & Triangulation

  • Cross-validation of findings through multiple data sources including trade publications and expert opinions
  • Triangulation of quantitative data with qualitative insights from interviews
  • Sanity checks through peer reviews and expert panel discussions

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of market size based on national manufacturing output and AI adoption rates
  • Segmentation of the market by industry verticals such as automotive, electronics, and consumer goods
  • Incorporation of government initiatives promoting AI in manufacturing as growth drivers

Bottom-up Modeling

  • Collection of data on AI technology investments from leading manufacturing firms
  • Estimation of market size based on unit sales of AI solutions and services
  • Analysis of operational efficiencies gained through AI implementation in manufacturing processes

Forecasting & Scenario Analysis

  • Development of predictive models using historical data on AI adoption trends in manufacturing
  • Scenario analysis based on varying levels of government support and technological advancements
  • Creation of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Automotive Manufacturing AI Integration100Production Managers, AI Implementation Leads
Electronics Manufacturing AI Solutions80Operations Directors, Technology Officers
Consumer Goods AI Applications70Supply Chain Managers, Quality Control Heads
Pharmaceutical Manufacturing AI Usage60Regulatory Affairs Managers, R&D Directors
Textile Industry AI Innovations40Product Development Managers, Sustainability Officers

Frequently Asked Questions

What is the current value of the Saudi Arabia Artificial Intelligence in Manufacturing Market?

The Saudi Arabia Artificial Intelligence in Manufacturing Market is valued at approximately USD 49 million, reflecting a significant growth trend driven by the increasing adoption of AI technologies to enhance operational efficiency and product quality across various manufacturing sectors.

What are the key cities driving the AI in Manufacturing Market in Saudi Arabia?

What government initiatives support AI adoption in Saudi manufacturing?

Which technology types dominate the AI in Manufacturing Market?

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