Artificial Intelligence - Saudi Arabia

The market size in the Artificial Intelligence market is projected to reach US$2.02bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.65%, resulting in a market volume of US$9.17bn by 2030.
In global comparison, the largest market size will be United States (US$50.16bn in 2024).

Definition:
Artificial intelligence (AI) is a branch of computer science that focuses on creating machines able to perform tasks traditionally requiring human intelligence, such as perception, reasoning, and learning. The Artificial Intelligence (AI) market includes a wide range of applications, such as speech recognition, image processing, and autonomous vehicles and has seen rapid growth in recent years due to advancements in technology and increased investment. The Artificial Intelligence (AI) market includes software, hardware, and services that enable organizations to develop and deploy AI applications.

Structure:

The Artificial Intelligence (AI) market is structured into six markets based on the technology:

The Computer Vision market covers applications that enable computers to interpret and understand digital images and video data.
The Machine Learning market covers the use of algorithms to enable computer systems to learn from data.
The Natural Language Processing market covers applications that enable computers to understand, interpret, and generate human language.
The Artificial Intelligence Robotics market covers the combination of AI, machine learning, and engineering to create intelligent machines that can perform tasks autonomously.
The Autonomous & Sensor Technology market covers machines and systems that operate independently by using sensors, AI, and machine learning to respond to changes in their environment.
The Generative AI market covers artificial intelligence that involves creating models capable of generating new content, such as images, videos, and text, which are indistinguishable from content created by humans.

Additional Information:

The Artificial Intelligence (AI) market comprises three key performance indicators: market sizes, market sizes by industry, and users of AI tools. Market sizes are generated by the funding amount of Artificial Intelligence (AI) companies. Key players of the Artificial Intelligence (AI) market include companies such as Google, Open AI, IBM, and Microsoft.

For more information on the data displayed, use the info button right next to the boxes.

Natural language processing tools, such as chatbots and speech recognition
Computer vision applications, such as object detection or face recognition
Machine learning tools, such as trained algorithms.

Robotics hardware, such as hardware used to build robots
Enterprise resource planning (ERP) software, such as SAP
Web development services, such as services intended for coding and designing websites.

The Artificial Intelligence market in Saudi Arabia is experiencing rapid growth, fueled by factors like increasing adoption of digital technologies, growing awareness of health and convenience offered by online services. The market's elevated growth rate is impacted by advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI.

Customer preferences: As technology continues to advance in Saudi Arabia, consumers are showing a growing interest in incorporating artificial intelligence (AI) into their daily lives. This trend is driven by the convenience and efficiency AI offers in various industries, such as healthcare, transportation, and finance. Moreover, the country's young and tech-savvy population is embracing AI-driven products and services, making it a key driver of market growth. This shift towards AI-based solutions is also influenced by the cultural emphasis on innovation and the desire for cutting-edge technologies in the region.

Trends in the market: In Saudi Arabia, the Artificial Intelligence market is experiencing a surge in demand for AI-powered chatbots, which are being utilized in various industries such as banking, retail, and healthcare. This trend is driven by the country's Vision 2030 initiative, which aims to diversify the economy and promote digital transformation. Additionally, there is a growing focus on using AI for smart city development and improving government services. As AI technology continues to advance, it is expected to have a significant impact on job creation and economic growth in the country. Industry stakeholders must stay abreast of these trends and invest in AI to remain competitive in the market.

Local special circumstances: In Saudi Arabia, the Artificial Intelligence market is expected to grow rapidly due to the government's Vision 2030 plan, which prioritizes investments in technology and innovation. The country's strategic location and proximity to major global markets have also made it a hub for AI development and adoption. Additionally, the country's cultural shift towards embracing technology, coupled with a supportive regulatory environment, has created a conducive ecosystem for AI growth. This has led to the emergence of various AI startups and initiatives, as well as increased investments from both local and international players.

Underlying macroeconomic factors: The Artificial Intelligence market in Saudi Arabia is also impacted by macroeconomic factors such as government initiatives to promote technological innovation and investments in digital infrastructure. The country's Vision 2030 plan aims to diversify the economy and reduce dependence on oil, leading to increased focus on emerging technologies like AI. Furthermore, the growing demand for AI solutions in sectors such as healthcare, finance, and transportation is driving the market growth in the country. Additionally, the government's efforts to build a knowledge-based economy and attract foreign investments in the AI sector are expected to further boost the market in the coming years. These factors, along with the country's stable economic health and favorable business environment, are creating a conducive environment for the growth of the Artificial Intelligence market in Saudi Arabia.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Artificial intelligence evokes images of supercomputer assistants, machines that can think creatively, and, to some, scenes from their favorite sci-fi movie. The reality, despite not being as futuristic, is not far off from this. AI refers to the ability of a computer or machine to mimic the competencies of the human mind, which often learns from previous experiences to understand and respond to language, decisions, and problems. The market for AI technologies is vast, amounting to around 200 billion U.S. dollars in 2023 and is expected to grow well beyond that to over 1.8 trillion U.S. dollars by 2030.

Artificial intelligence (AI), the technology that allows digital computers or computer-controlled robots to perform tasks more commonly associated with intelligent beings, has been leaping into the limelight following the release of a wide variety of Generative AI models in 2023. The United States, being the largest economy in the world, has a natural advantage. Although human-like androids such as those portrayed in the science fiction movie Blade Runner are still far from reality, applications of AI such as smartphone virtual assistants and industrial robots are already widespread in U.S. society. The industry’s powerful ability to improve efficiency and increase productivity has made it of strategic importance to U.S. industries and government, both of which push the U.S. lead in the AI race.