Saudi Arabia Telecom Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Saudi Arabia Telecom Market Analysis

The Saudi Arabia Telecom Market size is estimated at USD 19.04 billion in 2025, and is expected to reach USD 23.07 billion by 2030, at a CAGR of 3.92% during the forecast period (2025-2030).

Saudi Arabia's telecom sector is undergoing a profound transformation driven by rapid urbanization and digital adoption. According to recent data from early 2023, the country boasts an impressive internet penetration rate of 99%, with 36.31 million internet users actively participating in the digital economy. The widespread adoption of digital technologies has catalyzed the development of smart cities, advanced infrastructure, and innovative telecommunications solutions across the kingdom. This digital revolution is further evidenced by the presence of 29.10 million social media users, representing 79.3% of the total population, highlighting the country's strong digital engagement and connectivity requirements.

The kingdom's telecom industry is witnessing substantial investments in next-generation technologies and infrastructure development. In January 2024, e& Group announced a significant commitment of USD 6 billion over the next two years to advance technology infrastructure and boost digital solutions across several markets, including Saudi Arabia. This investment aims to enhance network accessibility, improve connectivity, and ensure more affordable telecommunications services. The focus on infrastructure development is particularly evident in the mobile sector, where the country has achieved remarkable progress with 42.50 million active cellular mobile connections as of early 2023, representing a penetration rate of 115.9%.

The evolution of 5G technology is playing a pivotal role in shaping the future of Saudi Arabia's telecom sector. The Communications, Space and Technology Commission (CITC) projects that 5G and Wi-Fi 6E technologies will significantly impact the economy, with their contribution to the country's GDP expected to surge from USD 4.7 billion to more than USD 18 billion by 2030. This transformation is further accelerated by recent developments, such as Zain's March 2024 announcement of plans to expedite the deployment of 5G-Advanced (5G-A) services, with ambitious goals to cover the country's main 18 cities with 5G-A technology by 2027-2030.

The telecommunications industry is increasingly focusing on emerging technologies and digital transformation initiatives aligned with Saudi Vision 2030. The sector is witnessing a surge in investments in artificial intelligence, Internet of Things (IoT), and cloud computing solutions, creating new opportunities for telecom providers and technology companies. The IMF projects Saudi Arabia's population in 2024 to reach 36.24 million inhabitants by 2028, indicating a growing market for advanced telecommunications services and digital solutions. This demographic growth, combined with the country's position as a leader in 5G adoption within the Gulf region, is driving the continuous evolution and modernization of the telecommunications market share.

Saudi Arabia Telecom Market Trends

Increasing Development of Fiber-Based Networks and Fixed Broadband Service

The rapid expansion of fiber-based networks in Saudi Arabia and fixed broadband infrastructure has become a crucial driver for Saudi Arabia's telecom market growth. In February 2023, Dawiyat Integrated Telecommunications & Information Technology Co. announced plans to invest USD 2.6 billion in building a comprehensive fiber-optic network across the country, aimed at providing high-speed broadband services to remote areas. This substantial investment demonstrates the strong commitment to expanding fixed broadband accessibility throughout the Kingdom. The development of fiber infrastructure has significantly enhanced telecommunications capabilities, enabling the delivery of reliable, high-bandwidth internet services to both residential and business customers, resulting in improved internet speeds, reduced latency, and better network reliability.

The growing accessibility and affordability of fixed broadband services have contributed to increased internet penetration across diverse demographics. According to recent statistics, fixed broadband subscriptions reached 36.96 per 100 people in 2022, showcasing significant growth from 29.45 in 2021. This expansion has facilitated the advancement of digital technologies and applications, including telemedicine, e-commerce, and e-learning, accelerating the digitalization of various sectors. The robust infrastructure has also created opportunities for implementing smart city solutions and IoT applications, further driving the demand for reliable and high-speed connectivity across the Kingdom.

Successful Liberalization of Saudi Telecom Sector and Launch of MVNOs

The liberalization of Saudi Arabia's telecom sector has fostered healthy competition, innovation, and improved service offerings, resulting in a more dynamic and consumer-centric market environment. The introduction of Mobile Virtual Network Operators (MVNOs) has played a pivotal role in promoting competition and enhancing consumer choice, leading to more affordable and diverse telecom services. This is evidenced by recent strategic partnerships, such as SALAM's collaboration with Oracle in August 2023 to drive 5G innovation across the Middle East, focusing on delivering differentiated services to both consumer and enterprise customers aligned with Vision 2030's digital transformation goals.

The influx of new players, including both local and international MVNOs, has intensified competition, compelling traditional telecom companies in Saudi Arabia to enhance their service quality, customer experience, and product offerings. This competitive environment has attracted significant foreign investment and expertise, establishing collaborations between local and international players. For instance, in March 2024, Dell Technologies and TAWAL signed a memorandum of understanding to advance the telecommunications industry in Saudi Arabia, while Zain Saudi Arabia partnered with Nokia to develop next-generation ultra-broadband networks. These partnerships facilitate knowledge transfer, technology sharing, and the introduction of advanced telecom solutions, contributing to the overall modernization of telecommunications infrastructure.

Largely Conducive Regulatory Environment Favoring Increasing Competition and Advanced Infrastructure

The Saudi Arabian government has implemented supportive regulatory policies that have enhanced competition for existing and emerging telecom providers in Saudi Arabia, encouraging open competition and ensuring customer benefits through competitive pricing and diverse service offerings. The regulatory environment has particularly facilitated the development of advanced infrastructure, including fiber-based networks and 5G technology, positioning the Kingdom as a significant regional hub for advanced telecommunications services. This is exemplified by the widespread deployment of 5G services, with coverage reaching 78% of the Kingdom's population, enabling the effective delivery of high-speed internet and enhanced data connectivity.

The regulatory authorities' proactive approach to promoting an investment-friendly environment has attracted both domestic and international telecom players, driving substantial infrastructure investments. In October 2023, STC Group announced one of the largest 5G network expansions, planning to cover more than 75 cities and governorates in Saudi Arabia, with current 5G network technologies already reaching over 90% of locations in major cities. The Communications and Information Technology Commission (CITC) has also played a crucial role in spectrum allocation and management, ensuring efficient deployment of advanced technologies and supporting the growing demand for data-intensive applications. This supportive regulatory framework has encouraged strategic collaborations and partnerships between service providers in Saudi Arabia and technology companies, promoting knowledge exchange and the adoption of best practices in the industry.

Segment Analysis: By Telecom Services

Data and Messaging Services Segment in Saudi Arabia Telecom Market

The Data and Messaging Services segment continues to dominate the Saudi Arabia telecom market share, commanding approximately 57% of the market share in 2024. This substantial market position is primarily driven by the increasing adoption of high-speed internet services and the growing digital transformation initiatives across various industries in Saudi Arabia. The segment's growth is further supported by the expansion of fiber networks, deployment of 5G services, and the increasing demand for mobile data services. Telecom operators in the region are actively expanding their infrastructure and forming strategic partnerships to enhance their data service capabilities, particularly in areas such as cloud computing, IoT connectivity, and enterprise solutions. The segment's strong performance is also attributed to the rising smartphone penetration and the growing trend of digital content consumption among Saudi consumers.

OTT and PayTV Services Segment in Saudi Arabia Telecom Market

The OTT and PayTV Services segment is emerging as the fastest-growing segment in the Saudi Arabia telecom market, with an expected growth rate of approximately 8% during 2024-2029. This remarkable growth is driven by the increasing consumer preference for digital entertainment platforms and streaming services. The segment is witnessing significant developments as telecom operators partner with content providers to offer bundled services and enhanced viewing experiences. The growth is further accelerated by the rising demand for Arabic content, strategic investments in local content development, and the increasing adoption of smart devices. Telecom providers are actively expanding their OTT and PayTV offerings through innovative packages and partnerships with global streaming platforms to capture the growing digital entertainment market in Saudi Arabia.

Remaining Segments in Telecom Services Market

The Voice Services segment, encompassing both wired and wireless communications, continues to play a vital role in the Saudi Arabia telecom market. While traditional voice services are experiencing a gradual transition, the segment remains essential for both consumer and business communications. The wireless voice services segment, in particular, maintains its significance through innovative offerings and bundled packages. Telecom operators are focusing on modernizing their voice infrastructure through technologies like VoLTE (Voice over LTE) and VoIP solutions, ensuring the segment's continued relevance in the evolving telecommunications landscape. The integration of voice services with advanced features and digital solutions demonstrates the segment's adaptation to changing market demands.

Segment Analysis: By Telecom Connectivity

Mobile Network Segment in Saudi Arabia Telecom Market

The mobile network segment dominates the Saudi Arabia telecom market, commanding approximately 83% of the market share in 2024, with revenues reaching $15.13 billion. This segment encompasses wireless networks utilizing cellular technology supported by base stations providing 3G, 4G, and 5G services. The segment's dominance is primarily attributed to the increasing smartphone penetration, proliferation of IoT devices, and growing demand among industries owing to enhanced digitization coupled with the momentum toward the digital economy in line with Saudi Vision 2030. The widespread rollout of 5G services, driven by continuous efforts from the Communications and Information Technology Commission (CITC) and market vendors, has resulted in better call quality and internet speeds, creating substantial demand for mobile data and voice services. The segment is projected to maintain its growth trajectory at around 4% through 2029, supported by the rapid development of e-commerce services and increasing demand for mobile data services.

Fixed Network Segment in Saudi Arabia Telecom Market

The fixed network segment represents a crucial component of Saudi Arabia's telecommunications infrastructure, providing physically connected services to specific locations such as offices, homes, and businesses through coaxial cables, copper wires, and fiber optics. This segment encompasses traditional landline telephony, fixed broadband services, and enterprise connectivity solutions. The Communications and Information Technology Commission's "Open Access" initiative has been instrumental in utilizing existing fiber-optic infrastructure and encouraging investments to expand subscriber choices. The segment has witnessed substantial modernization efforts, particularly in voice call networks for business and home sectors through SIP TRUNKS, while also experiencing significant growth in fiber-based broadband deployment across major cities like Jeddah, Mecca, Riyadh, Medina, and Damma.