Saudi Arabia IoT Security Market 2026–2034: Market Growth, Investment & AI Trends

Market Overview

The Saudi Arabia IoT security market size was valued at USD 72.2 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 439.7 Million by 2034, exhibiting a growth rate (CAGR) of 22.24% during 2026-2034. Growth is being driven by the rising assimilation of artificial intelligence (AI), which is automating threat responses and improving accuracy in identifying and managing risks across connected devices. Increasing implementation of government regulations aimed at ensuring data privacy, network integrity, and protected communication among IoT devices is further contributing to market expansion. Rapid rollout of smart city projects, industrial IoT systems, and connected infrastructure under Vision 2030 is widening the attack surface and reinforcing demand for robust security frameworks, while growing investment in cybersecurity talent and local solution development is reducing reliance on foreign technology.

How AI is Reshaping the Future of Saudi Arabia IoT Security Market:

• AI-driven threat detection systems are analyzing large volumes of IoT data in real time, helping security teams identify unusual patterns and potential breaches faster than traditional rule-based tools.
• Machine learning models are enabling security systems to learn from previous incidents and adapt to new attack vectors without constant human intervention.
• Predictive, AI-based security is being deployed in critical infrastructure such as energy and utilities, alerting organizations to possible vulnerabilities before they are exploited.
• AI-oriented automation is reducing response time to attacks, limiting damage and helping maintain network integrity across smart homes, connected vehicles, and industrial IoT systems.
• AI-based analytics are supporting compliance with evolving CST and SAMA-aligned regulatory requirements, helping organizations meet national IoT security standards more efficiently.
• Rising AI investment is fueling innovation in the sector; the LEAP 2025 conference in Riyadh alone revealed USD 14.9 Billion in new AI investments aimed at broadening the Kingdom's economy beyond oil.

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Market Growth Factors

The increasing implementation of government regulations remains a central driver of market growth. As Saudi Arabia accelerates digital transformation across industries, the government is introducing stringent guidelines to ensure data privacy, network integrity, and secure communication among IoT devices. In August 2024, the Communications, Space and Technology Commission (CST) revised the 'IoT Regulatory Framework' document and renamed it to 'IoT Regulations' to encourage investment and innovation in IoT, improve service quality and efficiency, enhance user experience, and reinforce the Kingdom's regulatory framework. These regulations are enabling businesses to adopt advanced protection solutions, driving demand for IoT security services.

Vision 2030-aligned smart city projects, digital infrastructure programs, and connected services are also requiring robust security frameworks, leading to increased spending on security software, hardware, and consulting. Mandatory compliance obligations are pushing organizations in energy, healthcare, transportation, and manufacturing to formalize their IoT security posture rather than treat it as optional.

Strategic partnerships are accelerating capability-building in the local market. In February 2025, the National Security Services Company (SAFE) and iot squared signed a Memorandum of Understanding to jointly develop secure IoT solutions, combining SAFE's national security expertise with iot squared's technology base to address market gaps and deliver co-branded Security-as-a-Service offerings.

Growth of consumer and industrial IoT adoption is compounding demand for endpoint and network-level protection. The rising use of smart homes, connected vehicles, and industrial IoT systems across the Kingdom is widening the pool of connected endpoints that require continuous monitoring, encryption, and identity management, while policies promoting local cybersecurity talent are gradually reducing dependency on foreign technology providers.

We explore the factors driving the growth of the market, including technological advancements, consumer behaviors, and regulatory changes, along with emerging Saudi Arabia IoT security market trends.

Market Segmentation

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. The market has been categorized based on component, security type, vertical, and region.

Component Insights:

• Solutions
• Services

Security Type Insights:

• Network Security
• Endpoint Security
• Application Security
• Cloud Security
• Others

Vertical Insights:

• Energy and Utilities
• Manufacturing
• Automotive
• Transport
• Consumer Electronics
• Healthcare
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Key Players:

The market exhibits competitive intensity with global cybersecurity majors and regional specialists competing across solution and service categories. Some of the key players operating in the market include Cisco Systems, Inc., Palo Alto Networks, Inc., Fortinet, Inc., IBM Corporation, Check Point Software Technologies Ltd., sirar by stc, SEALSQ Corp, WISeKey International Holding Ltd., National Security Services Company (SAFE), and iot squared.

Recent Development & News

• February 2025: The National Security Services Company (SAFE) and iot squared signed a Memorandum of Understanding to collaborate on delivering secure IoT solutions in Saudi Arabia, focusing on cross-selling services, developing new IoT security offerings, and identifying market gaps by combining SAFE's security expertise with iot squared's technology.
• January 2025: SEALSQ collaborated with WISeKey to strengthen its presence in Saudi Arabia and support the Kingdom's digital transformation and cybersecurity advancements, delivering IoT security, public key infrastructure (PKI), and digital identity management solutions powered by SEALSQ's quantum-resistant cryptographic technologies.
• February 2025: The LEAP 2025 conference held at the Riyadh International Exhibition and Convention Centre revealed USD 14.9 Billion in new AI investments, aimed at broadening Saudi Arabia's economy beyond oil and fostering innovation, job creation, and a knowledge-driven economy that is expected to accelerate demand for AI-enabled IoT security solutions.
• August 2024: The Communications, Space and Technology Commission (CST) revised the 'IoT Regulatory Framework' document, renaming it 'IoT Regulations' to encourage investment and innovation in IoT, improve service quality, enhance user experience, and reinforce the Kingdom's regulatory framework for connected devices.

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