Saudi Arabia Telecom Market Size (2024 - 2029)

Saudi Arabia Telecom Market Analysis

The Saudi Arabia Telecom Market size is estimated at USD 18.32 billion in 2024, and is expected to reach USD 22.22 billion by 2029, growing at a CAGR of 3.92% during the forecast period (2024-2029).

• The telecom sector in Saudi Arabia is anticipated to expand primarily due to the country's growing urban population and the widespread use of cell phones that enable 3G, 4G, and 5G services. Further, the Internet of Things (IoT), which connects with wired and wireless Internet, is predicted to be used more in the telecom industry throughout the forecast period, supporting the sector's expected growth during the forecast period.
• Saudi Arabia continues propelling investment in its telecommunication and digital infrastructure, functioning towards attaining the Saudi Vision 2030 initiative. Saudi Arabia's Communications, Space, and Technology Commission (CST) held an auction in early December 2022, where it allotted spectrum in the 2100MHz band for non-terrestrial network objectives. The auction was carried out as part of the effort by Saudi Arabia to cover rural and remote areas using advanced satellite technologies. STC secured both available spectrum blocks and, as the license holder under the auction terms, is required to build an Air-to-Ground network and provide the Kingdom with mobile satellite services. Such initiatives by the region would drive the studied market.
• Further, Saudi Arabia's ambitious investments in 5G are beginning to pay off. CITC (Communications, Space and Technology Commission) expects 5G and Wi-Fi 6E to increase their contribution to the country's GDP from USD 4.7 billion in 2021 to more than USD 18 billion by 2030. 5G is the launching pad required to accelerate the growth and deployment of rising technologies like Artificial Intelligence, IoT, cloud, and edge computing, with the possibility to transform the IT industry in various ways.
• According to a bulletin of the General Authority for Statistics, the rate of individuals using the Internet in Saudi Arabia jumped to 94.3 % in 2022. According to the data, the rate of individuals aged 15 years and above using the Internet increased to 94.3 %, an increase of 1.4 % compared to 2021. The rate of men using the Internet reached 95 %, while women stood at 93.3 %. Saudis constituted 93.6 %, while non-Saudis comprise 95.2 % of internet users. The percentage of households with access to the Internet was 96.5, and the percentage of families with a computer was 57.4. Such a huge rise in internet penetration in the region would drive the demand for telecom services in the Saudi Arabia region.
• The decline in employment opportunities, particularly in sectors heavily reliant on oil and related industries, has led to a reduction in household incomes and disposable incomes for a significant portion of the population in Saudi Arabia. As a result, many consumers have been made to reassess their spending priorities, leading to a potential decrease in the overall spending on telecom services, including mobile data plans, internet subscriptions, and value-added services.
• The decline in disposable incomes has also prompted many consumers to opt for more basic and cost-effective telecommunication packages, resulting in a shift away from higher-value and premium service offerings. This shift in consumer behavior may impact the average revenue per user (ARPU) for telecom operators. This can also be challenging for them to maintain sustainable revenue growth and profitability in the market.

Saudi Arabia Telecom Industry Segmentation

Telecommunication is an infrastructure that allows the transfer of all types of data, such as voice, text, audio, and video, across the world through a wired or wireless medium. The telecommunication sector is penetrating its services and coverage in remote areas and becoming vital to human lives. The telecom sector includes telephone, telecommunication, and internet service providers. The industry expanded in the past decades from telephonic voice calls to mobile data calls, Internet calls, text, Internet, and TV broadcasting services.

The Saudi Arabia Telecom market is segmented into telecom services by voice services (wired and wireless], data and messaging services, and OTT and payTV services) and telecom connectivity (fixed network and mobile network). 

The report offers market forecasts and size in value (USD) for all the above segments.