Saudi Arabia Telecom Market Analysis, Size, and Forecast 2025-2029

Saudi Arabia Telecom Market Size 2025-2029

The Saudi Arabia telecom market size is forecast to increase by USD 2.32 billion, at a CAGR of 2.4% between 2024 and 2029.

• The market is witnessing significant growth, driven by the surging demand for broadband services and the increasing investment in the development and commercialization of 5G networks. This digital transformation is fueled by the Saudi Arabian government's Vision 2030 initiative, which aims to diversify the economy and position the country as a global digital hub. However, this market expansion is not without challenges. Cybersecurity threats, including network attacks and online security breaches, pose a significant risk to telecom providers and their customers.
• As digitalization accelerates, ensuring robust security measures becomes increasingly crucial to maintain customer trust and protect sensitive data. Companies must invest in advanced security solutions and adopt best practices to mitigate these risks and capitalize on the opportunities presented by this dynamic market.

What will be the size of the Saudi Arabia Telecom Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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• In the dynamic telecommunications industry of Saudi Arabia, network security threats and data breaches pose significant challenges. Telecom equipment manufacturers are responding with advanced solutions, such as network slicing technologies and software-defined radio (SDR), to optimize network performance and enhance network security. The implementation of open RAN and 5G core network is driving network virtualization and network convergence, enabling next-generation wireless networks. Remote working trends necessitate robust network monitoring and network optimization. Augmented reality (AR) and virtual reality (VR) applications are transforming digital marketing, while next-generation mobile networks facilitate mobile payments and financial technology (fintech) innovations.
• Network troubleshooting and data leakage prevention remain critical priorities for telecom service providers. Satellite internet offers connectivity solutions in remote areas, and network monitoring tools ensure compliance with industry standards. Cognitive radio and network virtualization are key trends in spectrum management, ensuring efficient use of available resources.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• End-user
  • Consumer
  • Business
• Type
  • Wireless
  • Wireline
• Application
  • Residential
  • Commercial
• Technology Specificity
  • 5G
  • Fiber Optics
• Geography

By End-user Insights

The consumer segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth, driven by the increasing demand for advanced communication technologies and digital transformation. Consumers are at the forefront of this evolution, with smartphones becoming the primary tool for accessing the internet and using various applications such as social media, messaging services, streaming platforms, and online gaming. In 2023, there were approximately 37.93 million internet users in Saudi Arabia, representing a penetration rate of 99.1 percent. Social media usage is also prevalent, with an estimated 70 million users, accounting for 71 percent of the population. The telecom industry's growth is further fueled by the deployment of 5G networks, edge computing, data centers, and cloud computing.

Businesses are increasingly adopting machine learning, data analytics, and artificial intelligence to gain insights from big data and improve operational efficiency. Moreover, the implementation of software-defined networking (SDN) and network slicing is enabling network performance optimization and capacity planning. Telecommunications equipment manufacturers and service providers are investing heavily in mobile network infrastructure, including base stations, fiber optic cables, and home gateways, to meet the growing demand for mobile broadband and fixed line telephony. The Saudi Arabian government's digital inclusion efforts and smart city initiatives are also contributing to the market's growth. Overall, the market is poised for continued expansion as it embraces the latest wireless communication technologies and digital trends.

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The Consumer segment was valued at USD 10.02 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the Saudi Arabia Telecom Market drivers leading to the rise in adoption of the Industry?

• The significant surge in demand for broadband services serves as the primary catalyst for market growth.

• In Saudi Arabia, the telecom market is experiencing significant growth due to the increasing demand for advanced communication technologies. The proliferation of mobile devices and the widespread use of the Internet have led to a surge in the need for high-speed broadband connections. Telecom companies are responding by upgrading their network infrastructure, incorporating satellite communication and wireless communication technologies such as 5G, to support faster speeds and larger bandwidths. Moreover, the digital transformation in Saudi Arabia is driving the adoption of data analytics, machine learning, edge computing, and data centers to enable businesses to leverage data and improve operational efficiency.
• Social media, streaming services, and messaging services are also gaining popularity, fueling the demand for reliable and high-performance telecom networks. The telecom industry in Saudi Arabia is expected to continue its growth trajectory, driven by the government's initiatives to digitize various sectors, including healthcare, education, and finance. The adoption of these technologies is transforming the way people communicate and conduct business, making telecom services an essential component of modern life.

What are the Saudi Arabia Telecom Market trends shaping the Industry?

• The investment trend in 5G network development and commercialization is gaining significant momentum. This sector is poised for substantial growth in the upcoming market.

• The market is experiencing significant growth, driven by the deployment of 5G networks. This advanced mobile technology offers faster download speeds, minimal latency, and improved response times, providing businesses with a competitive edge. Notable companies from around the world, including those from the US, South Korea, and China, are investing in this technology in Saudi Arabia. For instance, in August 2023, Integrated Telecom Company Salam, the largest telecom operator in Saudi Arabia, announced a collaboration with Oracle to drive 5G innovation across the Middle East and Africa. Beyond 5G, the market is also witnessing increased adoption of network security, online gaming, cloud computing, network management systems, internet access, data services, artificial intelligence (AI), and M2M communication.
• Businesses are leveraging AI to gain insights through business intelligence (BI) and enhance their operations. Cloud computing is also gaining popularity due to its flexibility and cost savings. Network security is a critical concern for businesses, and they are investing in advanced security solutions to protect their data and networks. The market is expected to continue its growth trajectory, driven by these trends and the increasing demand for reliable and high-speed connectivity. With the increasing use of IoT devices and the growing popularity of online gaming, the market is poised for significant growth in the coming years.
• Network management systems are also becoming increasingly important as businesses look to optimize their networks and improve their operational efficiency. Overall, the market offers significant opportunities for businesses looking to expand their presence in the region.

How does Saudi Arabia Telecom Market face challenges during its growth?

• The escalating prevalence of network attacks and online security threats poses a significant challenge to the industry's growth trajectory. It is crucial for organizations to prioritize cybersecurity measures to mitigate these risks and ensure business continuity.

• The telecommunications market in Saudi Arabia is experiencing significant growth, driven by the increasing demand for advanced LTE technologies and mobile network infrastructure. Frequency licensing for LTE Advanced is a key factor propelling this growth, as telecommunications companies invest in network capacity planning to meet the rising demand for mobile broadband. The deployment of fiber optic cables and network slicing are also crucial elements in enhancing network efficiency and providing superior user experience. However, the market faces challenges from cybersecurity threats, which can disrupt critical services and communication channels.
• As the country's reliance on telecommunications services for online transactions, e-commerce, and digital communication increases, ensuring network security becomes paramount. Spectrum allocation and effective security measures are essential to mitigate the risks of network attacks and data breaches, which can erode consumer trust and hinder the adoption of new technologies.

Exclusive Saudi Arabia Telecom Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Etihad Etisalat Co.
• Huawei Technologies Co. Ltd.
• Integrated Telecom Company Salam
• Nokia Corp.
• Orange SA
• Proximus Group
• Saudi Telecom Co.
• Telefonaktiebolaget LM Ericsson
• Teleperformance SE
• Virgin Mobile KSA
• Vodafone Group Plc
• Zain Group

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Telecom Market In Saudi Arabia

• In February 2023, STC Group, the leading telecom operator in Saudi Arabia, announced the launch of its 5G standalone (SA) network, marking a significant technological advancement in the country's telecom sector. This development positions STC as the first telecom provider in Saudi Arabia to offer 5G SA services, providing enhanced connectivity and faster data speeds to its customers (STC Press Release, 2023).
• In May 2024, Saudi Telecom Company (Saudi Telecom) and Etisalat signed a strategic partnership to expand their 5G network coverage and enhance their digital services. This collaboration aims to strengthen their market position and improve their ability to offer advanced telecom solutions to their customers (Arab News, 2024).
• In October 2024, the Saudi Arabian General Authority for Civil Aviation (GACA) granted a license to Saudi Telecom to operate a nationwide drone delivery service. This approval marks a major milestone in the implementation of Saudi Arabia's drone delivery strategy, which aims to revolutionize the logistics sector and improve last-mile delivery efficiency (Saudi Press Agency, 2024).
• In January 2025, the Saudi Arabian Communications and Information Technology Commission (CITC) approved the merger of Zain Saudi and Mobily, two major telecom operators in the country. This merger is expected to create a leading telecom player in the Saudi market, with a combined market share of approximately 60% (Reuters, 2025).

Research Analyst Overview

The market continues to evolve, with dynamic market dynamics shaping the landscape of various sectors. Wireless communication technologies, such as 5G deployment and LTE advanced, are transforming the way businesses and individuals connect and communicate. Network security is a top priority, with the integration of AI and machine learning enhancing data analytics and ensuring robust cybersecurity. Online gaming and streaming services are gaining traction, driving demand for high-speed internet access and data services. Cloud computing and network management systems are essential tools for businesses undergoing digital transformation, enabling efficient data processing and network capacity planning.

M2M communication and edge computing are revolutionizing industries, from transportation and logistics to healthcare and energy. The role of data centers and fiber optic cables in supporting these technologies is paramount. Network slicing and software-defined networking (SDN) are also key elements of network performance optimization. Home gateways and cloud-based services are essential components of the evolving telecom ecosystem. Fixed line telephony and mobile network infrastructure continue to play a crucial role, with frequency licensing and spectrum allocation ensuring network capacity and efficiency. Smart cities and the Internet of Things (IoT) are driving innovation, with AI and big data enabling real-time insights and automation.

The ongoing unfolding of market activities and evolving patterns underscore the importance of business intelligence (BI) and network management systems in navigating this complex and dynamic landscape.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Telecom Market in Saudi Arabia insights. See full methodology.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Saudi Arabia
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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