People's reliance on technology is growing every day. Recently, there have been rapid developments in technological advancement, including IoT. People commonly use IoT devices such as smart watches and other devices.

This also happens in Saudi Arabia. Popularity among the populace is growing for this cutting-edge technology. A research firm, GMI Research, noted in their Saudi Arabia IoT device market forecast that the market would see a remarkable growth over the coming years.

Leading players in the Saudi Arabia IoT device market include ORBCOMM, IBM Corporation, Oracle Corporation, Nokia, among other top market players.

The market is segmented by application into building and automation, smart energy and utilities, smart manufacturing, agriculture, banking and financial services, government and defence, and others. Meanwhile, by component, the market is segmented into processor, sensor, and connected IC.

The Market Major Drivers

There are multiple variables that contribute to driving the market growth.

1. The government support to adopt latest technology

The government of Saudi Arabia has taken initiatives to digitalize the country, including the National Transformation Program. The country is also going to build a smart city. The key to unlocking the smart city is by focusing on digital infrastructure development and the integration with the Internet of Things.

2. The rising need for upgraded technology among population

With the increasing internet penetration in many areas in the country, there is also a rising need for upgraded technology. Many people and industries have utilized data analytics and Artificial Intelligence. The market will continue to grow as a result of the increase in the amount of data created by big data.

The Challenges

Despite its rapid development, the market also sees challenges looming on the horizon.

1. Security and privacy concerns

As IoT will exchange confidential data over the internet, it is prone to various cyberattacks. The lack of encryption, insufficient data protection, and weak authentication can lead to potential hacking and unauthorized access. IoT security market can prevent this by detecting, monitoring, and blocking any malicious attempts.

2. High cost

These advanced devices usually will come with a high cost, whether for the physical components such as cameras or sensors, for the initial installation, and also the maintenance. This can, in turn, hinder the development of the market. However, in the long run, these technological advancements will gradually reduce expenses as they will increase efficiency and productivity.

The Future Prospects

Nonetheless, the market has bright prospects on the horizon.

1. Partnerships between companies

The partnerships and collaborations between local and international technology companies plays an important role in driving the growth of the market in Saudi Arabia. These collaborations will see huge investments from public and private companies. It also gathers expertise and resources to develop innovative solutions.

2. The implementation of IoT in many aspects of life

There has been an increasing implementation of smart technology in many aspects of life. There are IoT applications in healthcare, security, supply chain management, among other sectors. 5G connectivity and integration of machine learning algorithms will also accelerate the growth of this market in Saudi Arabia.