Saudi Arabia Advanced Manufacturing - Industry - Market, Share and Trends 2023-2028

Summary of Advanced Manufacturing

Advanced manufacturing, which includes techniques like – 3D printing, robotics and artificial intelligence – is seeing increased adoption across the Middle East. Countries in the region are investing heavily in developing advanced manufacturing capabilities in fields like – aerospace, automotive, electronics and defense.

Based on our estimates, we can say that the Saudi Arabia’s advanced manufacturing industry is forecasted to be a $6.09 billion industry in 2029 from $3.84 billion in 2023 with a CAGR of 8 %.

Saudi Arabia has made developing an advanced manufacturing industry a key part of its Vision 2030 economic diversification plans. The country is focused on localizing defense, automotive, and machinery production. The Saudi government has established special economic zones and innovation centers to attract foreign direct investment in advanced manufacturing.

Saudi Arabia has made developing an advanced manufacturing industry a strategic priority under its Vision 2030 economic reform agenda. Specific goals under Vision 2030 include increasing the manufacturing sector’s contribution to GDP from 10% to 14%, boosting exports of non-oil goods and services from 16% to 50% of non-oil GDP and increasing foreign direct investment inflows.

To achieve these aims— Saudi Arabia is focused on localizing production in priority sectors like defense, automotive, machinery/equipment and other transport vehicles. For defense, a key priority is domestic production of ammunition, drones, armored vehicles and other military equipment. In automotive – Saudi aims to produce over half of demand locally across segments from cars to buses to trucks.

Recent Trends and Insights

The Saudi mining industry is growing in a steadfast manner leading to give 1300 new licenses and that has gained around $32.4 Billion in investments. These were in the mining and minerals sector through nine new projects. This is according to recent data from the Ministry of Industry and Mineral Resources.

The Saudi government has established special economic zones and innovation centers to attract foreign investment and technology transfer in advanced manufacturing. This actually helps to provide more context on Saudi Arabia’s advanced manufacturing initiatives under Vision 2030.

Neom Zone – A $500 billion futuristic megacity project spanning three countries focused on biotech, digital media, renewable energy and other high-tech manufacturing. Offers regulatory exemptions, streamlined business licensing, zero income taxes, and integrated logistics infrastructure.

King Abdullah Economic City – A megaproject of over 100 square miles with a dedicated Industrial Valley housing aerospace, automotive, machinery and other advanced manufacturers.

Four Innovation Centers – In Riyadh, Jeddah, Eastern Province, Asir – Provide funding, training and infrastructure for technology startups in fields like – robotics, IoT sensors and 3D printing. Aim to build R&D and IP in niche advanced manufacturing domains.

Product Insights

Countries with growing aviation industries in Saudi Arabia are pursuing opportunities in aircraft components, unmanned aerial vehicles (UAVs), satellites and related technologies. For example – Strata Manufacturing in the UAE produces Airbus A380 wings and other aerostructures using advanced composite materials and robotics.

Key products include: military vehicles, artillery systems, ammunition, drones, satellites, cybersecurity systems. State-owned companies like- SAMI and Saudi Arabian Military Industries Corporation manufacture defense products locally using advanced techniques like precision engineering, composite materials and integrated electronics.

Gasoline engines, electric vehicle components, aftermarket parts. Seeking to produce 600k vehicles locally. Using automation, prototyping, testing and validation centers to enable domestic production. Aiming for 50%+ localization by 2030.

Solar panels, wind turbine parts, transformers, monitoring systems and other equipment needed for mega renewable projects. Utilizing additive manufacturing, advanced materials, robotics and more for domestic production.

Pipes, valves, pumps, drill bits, monitoring sensors, platform/rig components fabricated with precision manufacturing. Applying IIoT, advanced analytics to improve performance.

Semi-conductors, computers, heavy equipment for construction, agricultural machinery, machine tools etc. Focus on increasing efficiency, safety, output via embedded computing, automation and other Industry 4.0 technologies.

Key companies

Some major players within this vast domain of industry are:

• Minister of Industry and Mineral Resources
• NAMI
• Saudi Aramco
• KACST
• Immensa Technology Labs
• Namthaja
• Digital Fabrication Lab
• Fabrication Lab
• AM Conclave

Country Analysis

Saudi Arabia has emphasized developing advanced manufacturing capabilities in line with its Vision 2030 goals. The country aims to boost the industrial sector’s GDP contribution from $55 billion to $219 billion by 2030 through initiatives like- the National Industrial Development and Logistics Program.

Saudi Arabia has created new cities and economic zones offering specialized infrastructure and incentives to attract manufacturing foreign and domestic firms in industries like automotive, machinery, chemicals, defense systems and more.

Major investments have also gone towards establishing R&D centers at universities focusing on robotics, IoT, nanotechnology and other technologies applicable to advanced production. Sustained public and private efforts to incorporate advanced techniques into strategic manufacturing industries helps Saudi Arabia reduce import reliance and creates skilled jobs for nationals.

Beyond infrastructure, major R&D investments aim to build Saudi expertise and IP in advanced techniques like robotics, nanotech, and IoT to apply across priority sectors. New centers at King Saud University, King Abdullah University of Science and Technology (KAUST) and other institutions focus on technology research and commercialization.

Sustained public and private efforts to incorporate advanced manufacturing into defense, automotive, renewables and other strategic sectors will help Saudi Arabia achieve the manufacturing goals outlined in Vision 2030. This includes: reducing reliance on imported goods, increasing non-oil exports and creating skilled jobs for Saudi nationals.

Market segmentation

By Type:

• Additive manufacturing/3D printing
• Automation/robotics
• Industrial internet of things (IIoT) and industrial analytics
• Plant asset management (PAM)
• Manufacturing execution systems (MES)
• Industrial controls

By End user:

• Manufacturer and Retailer
• Distinct industries like automotive, aerospace, electronics
• Process industries like oil & gas, chemicals, pharmaceuticals
• Energy and utilities
• Food and beverage

By Enterprise Size:

• Large Industries
• Small & Medium Industries

Our Methodology

We have offered a well-founded review of Saudi Arabia’s advanced manufacturing market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.