Report Overview

Saudi Arabia Generative AI Market – Industry Trends & Forecast Report, 2030

Saudi Arabia Generative AI Market size was estimated at USD 452.18 million in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Generative AI Market size is projected to grow at a CAGR of 7.54% reaching a value of USD 2,467.12 million by 2030. Prominent drivers of the market include the increasing focus on technological advancement and digital transformation as part of Vision 2030. The adoption of generative AI is rapidly growing across sectors such as healthcare, finance, education, and entertainment, reflecting the Kingdom's commitment to becoming a knowledge-based economy. Government initiatives, including the creation of AI centers and the promotion of digital inclusivity, are pivotal in driving this expansion. Despite challenges like a talent shortage and regulatory hurdles, the competitive landscape in Saudi Arabia's generative AI market is becoming more dynamic, with both established companies and emerging startups vying for prominence. This growing sector is set to revolutionize industries, drive economic growth, and elevate the quality of life across the Kingdom.

Generative AI – Overview

Generative AI constitutes a branch of artificial intelligence (AI) dedicated to producing novel content, spanning images, videos, music, or text. In contrast to conventional AI models geared towards classification or prediction, generative AI models strive to generate fresh content absent in the training dataset. Leveraging extensive datasets, they discern patterns and correlations to generate new instances, often mimicking the style, structure, and attributes of the input data. Consequently, its application transcends various sectors, including healthcare, information technology (IT), robotics, and banking, financial services, and insurance (BFSI).

Saudi Arabia Generative AI Market

Growth Drivers

Saudi Government’s Supportive Initiatives and Vision 2030

Saudi Arabia's Vision 2030 drives significant investments in AI and digital technology to diversify the economy and build a knowledge-based society. Government initiatives such as the AI Center for Media and the "Generative Artificial Intelligence for All" initiative are pivotal in enhancing national media capabilities and promoting digital inclusivity. These efforts aim to position the Kingdom as a leader in AI innovation, fostering a robust environment for technology growth and investment. Aligned with Vision 2030, these initiatives are propelling substantial growth in Saudi Arabia's Generative AI (GenAI) market. This strategic focus is transforming sectors, enhancing operational efficiency, and enriching customer interactions in healthcare, telecommunications, and beyond. The Kingdom's commitment to economic diversification and digital infrastructure underscores its aspiration to lead global technological innovation, fostering economic sustainability and international competitiveness in the digital age.

Growing Tech-Savvy Population

The Kingdom's increasing focus on digital inclusivity and AI capacity-building reflects its growing tech-savvy population. As generative AI solutions gain traction, there is a rising demand for technology skills and engagement among the Saudi populace. Government-backed educational programs and initiatives are nurturing this trend, empowering citizens to participate actively in the digital economy and paving the way for a more technologically proficient workforce and consumer base.

Challenges

Shortage of Skilled Professionals

Although the Saudi Arabia AI landscape is expected to grow at a substantial rate, it faces a significant challenge due to the shortage of skilled professionals. This skill gap is particularly evident in the differential adoption of AI across the region, with advanced economies like the UAE and Saudi Arabia leading, while others lag due to limited access to talent and infrastructure. Despite heavy investments and the potential for substantial economic gains, fostering a workforce equipped with AI expertise is crucial. Addressing this shortage through targeted education and training is essential for leveraging AI technologies and achieving broader economic diversification and growth.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Generative AI Market

Escalating geopolitical tensions can have a multifaceted impact on Saudi Arabia Generative AI Market. Such instability can disrupt investment flows, delay technology collaborations, and hinder access to global talent and resources essential for AI development. Increased focus on national security may divert funding from technological innovation to defense. Additionally, geopolitical conflicts might complicate partnerships with international AI firms and restrict the import of crucial AI technologies. Despite these challenges, Saudi Arabia's commitment to Vision 2030 and strategic investments in AI could help mitigate these risks and maintain momentum in advancing its generative AI sector.

Saudi Arabia Generative AI Market

Segmental Coverage

Saudi Arabia Generative AI Market – By Component

By component, Saudi Arabia Generative AI Market is bifurcated into Software and Service segments. The software segment holds a higher share in the Saudi Arabia Generative AI Market by component. It is primarily through its advanced capabilities and transformative impact. Generative AI models are revolutionizing software development by automating complex tasks and fostering innovation across various industries. They excel in generating original content, streamlining software creation, and predicting market trends, underscoring their potential to reshape the future of human-machine collaboration. As these models evolve, they promise to propel the software industry into new realms of efficiency and creativity, marking a significant shift towards integrated AI-driven solutions in Saudi Arabia and beyond.

Saudi Arabia Generative AI Market – By Technology

Based on technology, Saudi Arabia Generative AI Market is divided into Generative Adversarial Networks (GANs), Transformers, Variational Auto-encoders (VAE), Diffusion Networks, and Retrieval Augmented Generation segments. The transformers segment holds the highest share in the Saudi Arabia Generative AI Market by technology. It is primarily due to their unparalleled versatility in natural language processing (NLP), excelling in tasks like machine translation, text generation, and sentiment analysis. Leveraging self-attention mechanisms, they capture intricate linguistic dependencies, making them indispensable across industries for automating customer interactions, content creation, and conversational AI. Their pre-trained models, such as GPT-3, facilitate rapid deployment and fine-tuning, driving efficiency in applications from healthcare analytics to financial forecasting. Meanwhile, the generative adversarial networks (GANs) segment is expected to witness the fastest growth rate during the forecast period. The GANs is generating realistic images, videos, and multimedia content, revolutionizing creative industries with innovations like deepfakes and style transfer. GANs empower artists and designers to push boundaries in virtual reality, gaming, and advertising, while also enhancing scientific research through synthetic data generation for drug discovery and medical imaging. Despite challenges like training stability and ethical concerns, both technologies continue to evolve, shaping the future of AI-driven innovation and application across diverse sectors globally.

Saudi Arabia Generative AI Market – By Data Modality

Based on data modality, Saudi Arabia Generative AI Market is divided into Text, Image, Audio & Speech, and Code segments. The text segment holds the highest share in Saudi Arabia Generative AI Market by data modality. It is primarily driven by the widespread adoption of Transformer-based Models, which excel in natural language processing tasks such as machine translation, text generation, and sentiment analysis. These models leverage advanced self-attention mechanisms to capture complex linguistic patterns, making them indispensable across industries for automating customer interactions, content creation, and enhancing data-driven decision-making processes. Their versatility and ability to handle large-scale textual data sets them apart, positioning them as the leading segment in Saudi Arabia's generative AI landscape.

Saudi Arabia Generative AI Market – By Application

Based on application, Saudi Arabia Generative AI Market is divided into Business Intelligence & Visualization, Content Management, Synthetic Data Management, Search & Discovery, and Automation & Integration segments. The business intelligence & visualization segment holds the highest share in the Saudi Arabia Generative AI Market by application. It is primarily due to enhanced data utilization and strategic decision-making. Integrating Generative AI technologies within BI tools introduces GenerativeBI, a groundbreaking approach that revolutionizes data analysis and interpretation. By leveraging Generative AI, BI platforms gain predictive capabilities, enabling precise trend forecasting and scenario simulations. This advancement not only enhances decision-making processes but also enriches data completeness through synthetic data generation, ensuring robust insights without compromising privacy. Furthermore, the integration of natural language processing makes complex data accessible, empowering non-technical users to interact intuitively with data. GenerativeBI thus represents a transformative leap towards proactive, narrative-driven analytics, positioning businesses to anticipate challenges and seize opportunities in an increasingly competitive landscape.

Saudi Arabia Generative AI Market – By End Use

On the basis of end use, Saudi Arabia Generative AI Market is segmented into Media & Entertainment, BFSI, IT & Telecommunications, Healthcare, Automotive & Transportation, and Gaming. The IT & telecommunications segment holds the highest share in Saudi Arabia Generative AI Market by end use. dominance stems from substantial investments in AI infrastructure and burgeoning applications across software and internet platforms. The region's strategic focus on digital innovation positions IT & telecommunications at the forefront of generative AI adoption. The government’s initiatives integrating AI into communications and financial technologies underscore the sector's pivotal role in driving generative AI growth within MENA (Middle East and North Africa). As the region embraces an 'AI-first' approach, IT & Telecommunication is expected to lead in deploying AI-native platforms, ensuring substantial advancements and competitive advantages in the evolving market landscape. Meanwhile, the BFSI segment is expected to witness the fastest growth rate during the forecast period. It is primarily driven by the transformative impact of Generative Artificial Intelligence (AI) across industries, particularly in finance and banking. Saudi Arabia, known for its ambitious Vision 2030 initiative, is embracing generative AI to innovate and enhance customer experiences. This adoption is part of a broader strategy to diversify the economy and establish global leadership in technology. With significant advancements in app development and digital solutions, the Kingdom's finance and banking sector is leveraging generative AI to personalize services, automate content creation, enhance customer engagement, and bolster fraud detection and risk management capabilities. This strategic integration underscores Saudi Arabia's commitment to technological advancement and economic resilience in a dynamic global landscape.

Competitive Landscape

Major players operating in Saudi Arabia Generative AI Market include Microsoft Corporation, IBM Corporation, Google LLC, Oracle, Mobcoder, Takamul Smart Technology, Saudi Aramco, Xcelore, Schlumberger, and Accenture. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2024 - Sprinklr, in collaboration with Google Cloud, introduced a local data hosting solution in Saudi Arabia, ensuring compliance with regional data residency, security, and privacy regulations. The partnership is said to underscore Google Cloud's commitment to supporting secure and compliant data solutions in Saudi Arabia Generative AI Market, leveraging advanced AI technologies, such as Sprinklr AI+, to enhance customer experiences and operational efficiency.

• In February 2024 - Saudi Arabia launched the "GenAI for All" initiative during the Digital Cooperation Organization's Third General Assembly. The initiative aims to advance research and policy frameworks for generative artificial intelligence (GenAI) across member states, emphasizing ethics and capacity building.

Scope of the Report

By Component

• Software

• Service

By Technology

• Generative Adversarial Networks (GANs)

• Transformer

• Variational Autoencoder (VAE)

• Diffusion Networks

• Retrieval Augmented Generation

By Data Modality

• Text

• Image

• Audio & Speech

• Code

By Application

• Business Intelligence & Visualization

• Content Management

• Synthetic Data Management

• Search and Discovery

• Automation & Integration

By End User

• Media & Entertainment

• BFSI

• IT & Telecom

• Healthcare

• Automotive & Transportation

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Generative AI Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Government initiatives and vision 2030 to promote investments in technology including AI
         2. Rapid digitalization across various sectors
         3. Growing tech-savvy population
      2. Restraints
         1. Increasing data privacy and security concerns
         2. high costs associated with implementing AI solutions
         3. Shortage of skilled professionals
      3.  Opportunities
         1. Development of smart cities and infrastructure
         2. Increasing adoption of telemedicine and AI in personalized medicine
      4. Challenges
         1. Developing comprehensive AI regulations
         2. Integration with existing systems
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Generative AI Market: Marketing Strategies
5. Saudi Arabia Generative AI Market: Pricing Analysis
6. Saudi Arabia Generative AI Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
         1. Software
         2. Service
      2. By Technology
         1. Generative Adversarial Networks (GANs)
         2. Transformer
         3. Variational Autoencoder (VAE)
         4. Diffusion Networks
         5. Retrieval Augmented Generation
      3. By Data Modality
         1. Text
         2. Image
         3. Audio and Speech
         4. Code
      4. By Application
         1. Business Intelligence & Visualization
         2. Content Management
         3. Synthetic Data Management
         4. Search & Discovery
         5. Automation & Integration
         6. Others
      5. By End User
         1. Media & Entertainment
         2. BFSI
         3. IT & Telecom
         4. Healthcare
         5. Automotive & Transportation
         6. Others
7. Competitive Landscape
   1. List of Key Players and Their Products
   2. Saudi Arabia Generative AI Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Saudi Arabia Generative AI Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, and SWOT Analysis)
   1. Microsoft Corporation
   2. IBM Corporation
   3. Google LLC
   4. Oracle
   5. Mobcoder
   6. Takamul Smart Technology
   7. Saudi Aramco
   8. Xcelore
   9. Schlumberger
   10. Accenture
   11. Other prominent players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Saudi Arabia Generative AI Segmentation

Figure 2       Saudi Arabia Generative AI Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Saudi Arabia Generative AI Market Size, By Value (USD Million), 2019–2030

Figure 5       Saudi Arabia Generative AI Market Share, By Component, By Value (USD Million), 2019–2030

Figure 6       Saudi Arabia Generative AI Market Share, By Technology, By Value (USD Million), 2019–2030

Figure 7       Saudi Arabia Generative AI Market Share, By Data Modality, By Value (USD Million), 2019–2030 

Figure 8       Saudi Arabia Generative AI Market Share, By Application, By Value (USD Million), 2019–2030

Figure 9    Saudi Arabia Generative AI Market Share, By End User, By Value (USD Million), 2019–2030                                       

List of Tables      

Table 1        Saudi Arabia Generative AI Market Size, By Value (USD Million), 2019–2030

Table 2        Saudi Arabia Generative AI Market Share, By Component, By Value (USD Million), 2019–2030

Table 3        Saudi Arabia Generative AI Market Share, By Technology, By Value (USD Million), 2019–2030

Table 4        Saudi Arabia Generative AI Market Share, By Data Modality, By Value (USD Million), 2019–2030

Table 5        Saudi Arabia Generative AI Market Share, By Application, By Value (USD Million), 2019–2030

Table 6        Saudi Arabia Generative AI Market Share, By End User, By Value (USD Million), 2019–2030 

Table 7        Microsoft Corporation Company Overview

Table 8        Microsoft Corporation Financial Overview

Table 9        IBM Corporation Company Overview

Table 10      IBM Corporation Financial Overview

Table 11      Google LLC Company Overview

Table 12      Google LLC Financial Overview

Table 13      Oracle Company Overview

Table 14      Oracle Financial Overview

Table 15      Mobcoder Company Overview

Table 16      Mobcoder Financial Overview

Table 17      Takamul Smart Technology Company Overview

Table 18      Takamul Smart Technology Financial Overview

Table 19      Saudi Aramco Company Overview

Table 20      Saudi Aramco Financial Overview

Table 21      Xcelore Company Overview

Table 22      Xcelore Financial Overview

Table 23      Schlumberger Company Overview

Table 24      Schlumberger Financial Overview

Table 25      Accenture Company Overview

Table 26      Accenture Financial Overview