Saudi Arabia Telecom Market Overview

Market Size in 2024 : USD 16.8 Billion

Market Size in 2033: USD 22.7 Billion

Market Growth Rate 2025-2033: 3.4%

According to IMARC Group's latest research publication,"Saudi Arabia Telecom Market Report by Type (Mobile, Fixed-Line, Broadband), and Region 2025-2033", Saudi Arabia telecom market size reached USD 16.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 22.7 Billion by 2033, exhibiting a growth rate (CAGR) of 3.4% during 2025-2033.

Growth Factors Driving the Saudi Arabia Telecom Industry

• Rapid Expansion of 5G Networks

The introduction of 5G networks is one of the primary telecom industry drivers in Saudi Arabia, as it increases connectivity and facilitates the latest technologies application. TeleSky giants such as Zain Saudi Arabia and Nokia have joined hands to amplify the advancement of 5G networks with the Zain company announcing that it will cover 18 significant cities with 5G-Advanced services. Communications, Space and Technology Commission (CITC) recorded that 5G and WiFi 6E innovations can have a great effect on the economy and reported that a massive growth of the GDP can be seen in terms of contribution. This growth accommodates high-speed web, low latency, and IoT, which addresses the demands of the tech-savvy citizens. Vision 2030 has promoted 5G rapidly with governmental offers to investments and spectrums purchase such as the one zain bought a 600 MHz one, in order to stimulate more standalone 5 G usage and innovation in various industries.

• Government Support Through Vision 2030

The telecom industry is experiencing growth in recognition of the Envisioned 2030 aspirations in Saudi Arabia, which highlights the essentiality of a digital changeover and the diversification of its economy. The telecom sector has been liberalized thereby attracting foreign investment and competition. An example is the Shareek program in 2021 that opened up major investments in the private sector with $51 billion investment in eight companies that were to enhance digital infrastructure. Communications and Information Technology Commission (CITC) has implemented regulatory reform that will rationalize the spectrum acquisition and promote public-private partnerships. Improvement in the quality of services and affordability of the service has resulted in growth in telecom subscribers due to these policies. Through the promotion of smart city projects and online services, Vision 2030 helps the telecom business maintain a central position in revolutionizing such sectors as healthcare, education, and tourism, laying the foundation of a strong digital economy.

• Rising Smartphone Penetration and Data Demand

The growth factor of Saudi Arabia in the telecom market is the widespread usage of smartphones that is boosted by a young and techno-savvy generation. The three major smartphone markets include Saudi Arabia with a population of approximately 92 per cent of their own citizens owning smartphones. Other telecom operators such as STC and Mobily are pumping up investments on mobile services and have come up with new data packages to retain customers. The upsurge in digital content consumption has catalyzed the need to upgrade the infrastructure with increased 4G and 5G networks. Dawiyat Integrated Telecommunications is constructing a $2.6 billion fiber-optic network to deliver high-speed broadband connectivity in the remote places of the Arabian Peninsula as an example. This emphasis on mobile connection enables e-business and online services both of which guarantee that telecommunication companies satisfy the increasing demand of mobile connectivity to high-speed and uninterrupted internet usage.

Emerging Trends in the Saudi Arabia Telecom Market

• Integration of AI and IoT Solutions

AI and IoT are the two technologies the Saudi telecom market is adopting to improve its connectivity and customer experiences. Organisations such as Exotel introduced what it termed Ameyo, as a local cloud-based customer interaction that relies on the application of AI, in line with the digital ambitions of Vision 2030. Artificial intelligence services in support of customers and efficiency in the network are rising, and IoT-based applications are changing industries. To take an example, Zain IoT CCTV solutions enable provision of security by the government in eight major cities. The increasing needs of IoT devices and the low latency of 5G allows exchanging data in real-time, which can be applied to smart cities, healthcare, and agriculture. Telecom companies are investing in companies in cloud computing and Internet of Things connectivity to satisfy enterprise requirements, which bring new revenue streams and can make Saudi Arabia an innovation hub in innovative telecom technology.

• Focus on Smart City Initiatives

Saudi Arabia is reinventing its telecom industry through smart city projects marshaled under the vision of urban innovation in Vision 2030. Telecom operators such as TAWAL are installing smart poles and modular small cells, and in addition to connectivity, they provide services to enable such features as EV charging, and CCTV. That is why such solutions assist megaprojects in Riyadh and Vision 2030 projects, the development of infrastructure and tourism, particularly events such as Hajj. There is an increasing need and demand of high-speed internet and integration of IoT, and operators are improving networks to manage more data traffic. When we take the example of TAWAL, the company has installed more than 100 in-building enterprise solutions as well as smart cities solutions. The trend is also increasing telecom investment by assuring strong connectivity to service in the urban areas and making Saudi Arabia a hub in the smart city development.

• Growth of OTT and PayTV Services

OTT and PayTV service provision sector is booming in Saudi Arabia with the digital content demand in the country experiencing a boom. Coupled with strong 4G/5G network penetration and smart phone penetration, consumers are doing more video and game streaming. Telecoms such as STC and Mobily are cashing in on this and are diversifying their services by adding OTT platforms to their market. The segment is expanding at a very high rate and it is estimated that the demand of digital services will grow by 8 percent annually. Alliances with international technology companies enable partners to promote better distribution of contents as fiber networks investments give a guarantee of high-speed connections. This is an indication of shifting consumer demands, and the ability of the telecom providers to evolve to provide a smooth streaming process has cemented their position in the industry of digital entertainment.

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Saudi Arabia Telecom Industry Segmentation:

The report has segmented the market into the following categories:

Breakup by Type:

• Mobile
• Fixed-Line
• Broadband

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. 

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Future Outlook

Telecom is a very promising industry in Saudi Arabia, and 5G, AI, and IoT are just a few of the fields in which investments in telecom are ongoing. The sector will sustain the realization of smart city projects and digital change at all industries such as healthcare, education, and tourism, with Vision 2030 as a backbone of the sector. Telecom companies such as STC, Mobily and Zain are also building infrastructure and projects such as the Dawiyat fiber project that costs 2.6 billion dollars guarantee coverage in the more isolated regions. The emergence of e-commerce and the digital services will boost even higher internet speed as faster the internet the greater will be the demand and CITC friendly regulations promote innovations and competitions. The next-generation solutions will be powered by strategic partnerships like the cooperation between the Zain and Nokia, making Saudi Arabia a regional tech hub and guaranteeing the active, networked future.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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