Saudi Arabia Tracking as a Service Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Saudi Arabia Tracking as a Service Market Overview

• The Saudi Arabia Tracking as a Service Market is valued at USD 380 million, based on a five-year historical analysis, in line with the broader location-based services and real-time tracking ecosystem in the Kingdom. This growth is primarily driven by the increasing demand for real-time tracking solutions across logistics, healthcare, retail, and smart city applications, supported by Vision 2030 digital transformation initiatives. The rise in e-commerce, expansion of last?mile delivery, and the need for efficient supply chain and asset management have further propelled the market, as businesses seek to enhance operational efficiency, service quality, and customer satisfaction.
• Key cities dominating the market include Riyadh, Jeddah, and Dammam. Riyadh, as the capital, serves as a central hub for government, business, and technology, concentrating a large share of spending on location-based and tracking solutions. Jeddah, with its Red Sea port and major logistics operations, plays a crucial role in freight, container, and last?mile tracking, while Dammam and the Eastern Province are pivotal for industrial, petrochemical, and port-related activities, making these cities essential for the growth of tracking services in the region.
• The Saudi government has strengthened regulations requiring the use of tracking and telematics systems in commercial transport to enhance safety and efficiency. The Public Transport Authority’s technical regulations for tracking land transport vehicles and the Mandatory Vehicle Tracking System framework issued under the Transport General Authority require licensed transport operators to install approved GPS-based tracking devices on designated categories of commercial vehicles, ensure continuous transmission of location data to the national platforms, and comply with data retention, integration, and reporting standards.

Saudi Arabia Tracking as a Service Market Segmentation

By Type:The market can be segmented into various types, including GPS Tracking, RFID Tracking, Cellular Tracking, Bluetooth Tracking, and Others. GPS Tracking is the most dominant segment, reflecting its core role in fleet management, route optimization, driver behavior monitoring, and asset tracking across logistics, ride?hailing, and field?service operations. The increasing reliance on satellite-based navigation, integration of GPS with telematics and IoT platforms, and its use in both outdoor logistics corridors and urban mobility services have made it a preferred choice for businesses and consumers alike.

By End-User:The end-user segmentation includes Transportation and Logistics, Retail, Healthcare, Manufacturing, and Others. The Transportation and Logistics sector is the leading segment, driven by the need for efficient fleet management, regulatory compliance, cold?chain monitoring, and real-time tracking of goods across domestic and cross?border routes. The growth of e-commerce and last?mile delivery, coupled with large-scale freight and logistics investments under Vision 2030, has intensified the demand for tracking solutions in this sector, as businesses strive to enhance delivery speed, on?time performance, and customer satisfaction.

Saudi Arabia Tracking as a Service Market Competitive Landscape

The Saudi Arabia Tracking as a Service Market is characterized by a dynamic mix of regional and international players. Leading participants such as STC Solutions, Mobily, Zain KSA, Al-Falak, Axiom Telecom, Al-Jazira Capital, Saudi Telecom Company, Nadec, Al-Muhaidib Group, Al-Faisaliah Group, Al-Babtain Group, Al-Rajhi Bank, Saudi Aramco, National Industrialization Company (Tasnee), Saudi Basic Industries Corporation (SABIC) contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Tracking as a Service Market Industry Analysis

Growth Drivers

• Increasing Demand for Real-Time Tracking Solutions:The Saudi Arabian logistics sector is projected to reach a value of SAR 110 billion in future, driven by the need for real-time tracking solutions. This demand is fueled by the growing e-commerce market, which is expected to surpass SAR 35 billion in future. Companies are increasingly adopting tracking services to enhance operational efficiency and customer satisfaction, leading to a significant rise in service adoption across various industries.
• Expansion of Logistics and Supply Chain Sectors:The logistics and supply chain sectors in Saudi Arabia are experiencing rapid growth, with an expected annual growth rate of 8% through future. This expansion is supported by the government's Vision 2030 initiative, which aims to diversify the economy and improve infrastructure. As logistics companies seek to optimize their operations, the demand for tracking as a service solutions is anticipated to increase, providing a robust market opportunity.
• Government Initiatives for Smart City Development:The Saudi government is investing heavily in smart city projects, with an estimated budget of SAR 600 billion allocated for urban development in future. These initiatives include the integration of advanced tracking technologies to enhance urban mobility and logistics efficiency. As smart cities evolve, the need for sophisticated tracking solutions will grow, creating a favorable environment for tracking as a service providers to thrive.

Market Challenges

• High Initial Investment Costs:The implementation of tracking as a service solutions often requires significant upfront investments in technology and infrastructure. For instance, the average cost of deploying a comprehensive tracking system can exceed SAR 1.2 million for medium-sized enterprises. This financial barrier can deter potential users, particularly small and medium-sized businesses, from adopting these solutions, limiting market growth.
• Data Privacy and Security Concerns:With the increasing reliance on tracking technologies, data privacy and security have become critical challenges. In future, it is estimated that cybercrime could cost the global economy over USD 12 trillion annually. In Saudi Arabia, businesses face stringent data protection regulations, which can complicate the implementation of tracking solutions. These concerns may hinder adoption rates and slow market growth as companies prioritize data security.

Saudi Arabia Tracking as a Service Market Future Outlook

The future of the tracking as a service market in Saudi Arabia appears promising, driven by technological advancements and increasing demand for efficiency. As businesses continue to embrace digital transformation, the integration of AI and machine learning into tracking solutions will enhance data analytics capabilities. Furthermore, the expansion of e-commerce and logistics sectors will create new avenues for growth, positioning tracking services as essential tools for operational success in the evolving market landscape.

Market Opportunities

• Growth in E-Commerce and Delivery Services:The e-commerce sector in Saudi Arabia is projected to grow significantly, reaching SAR 35 billion in future. This growth presents a substantial opportunity for tracking as a service providers to cater to the increasing demand for efficient delivery solutions, enhancing customer satisfaction and operational efficiency in the logistics chain.
• Integration with AI and Machine Learning:The integration of AI and machine learning technologies into tracking solutions can revolutionize data analysis and operational efficiency. In future, the AI market in Saudi Arabia is expected to reach SAR 12 billion, providing tracking service providers with the opportunity to enhance their offerings and deliver more value to customers through predictive analytics and real-time insights.