As per MRFR analysis, the GCC AI in IoT Market Size was estimated at 207.49 (USD Million) in 2023.The GCC AI in IoT Market is expected to grow from 266(USD Million) in 2024 to 1,050 (USD Million) by 2035. The GCC AI in IoT Market CAGR (growth rate) is expected to be around 13.295% during the forecast period (2025 - 2035)
Key GCC AI in IoT Market Trends Highlighted
Rapid technical breakthroughs and an increase in government initiatives are driving important trends in the GCC AI in IoT market. The focus on digital transformation, which is being led by several GCC governments looking to diversify their economies, is one of the main factors driving the market.Nations like Saudi Arabia and the United Arab Emirates are making significant investments in digital infrastructure and smart city initiatives, creating an atmosphere that is conducive to the growth of AI and IoT.
In addition to improving operational effectiveness, this strategic focus supports sustainable development in a number of industries, such as energy, transportation, and healthcare. There are several opportunities in the area as companies use AI and IoT devices to improve consumer experiences and streamline operations.In order to create smarter applications in a variety of industries, including manufacturing and agriculture, businesses in the GCC are investigating automated solutions that use AI algorithms for data analysis, predictive maintenance, and real-time monitoring.
New service models and revenue streams are being made possible by the push for IoT technology adoption across a range of industries, giving companies an opportunity to stay innovative and competitive.Increased cooperation between the public and private sectors to advance AI and IoT efforts has been a discernible trend in recent years. Collaborations are forming to create important frameworks and standards that aid in negotiating the challenges of digital transformation.
Businesses are also changing their tactics to guarantee compliance and foster customer trust as awareness of data security and privacy begins to rise. The market is expected to continue expanding as long as GCC countries prioritize technological integration, paving the way for further developments in AI and IoT.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
GCC AI in IoT Market Drivers
Increasing Adoption of Smart Cities Initiatives
The Gulf Cooperation Council (GCC) countries are increasingly focusing on smart city initiatives, which integrate Artificial Intelligence (AI) and Internet of Things (IoT) technologies to enhance urban infrastructure and management.For instance, the Saudi Vision 2030 plan emphasizes the transformation of cities into smart ecosystems, promoting efficient resource management and improved citizen services. A significant metric supporting this driver is the investment in smart city projects, which is projected to reach approximately 75 billion USD by 2030 across the GCC region.
This growth reflects the robust commitment from government entities such as the Dubai Smart City initiative, which aims to make Dubai the happiest city on earth by implementing more efficient and intelligent services.As these projects expand, the demand for AI solutions in IoT applications, such as smart traffic systems, automated waste management, and urban safety solutions, will likely drive the growth of the GCC AI in IoT Market.
Government Support and Regulatory Frameworks
The GCC governments are actively nurturing the AI and IoT ecosystem through policies and regulations aimed at fostering innovation and technological advancement. For example, the Qatar National Vision 2030 promotes the use of cutting-edge technologies, including AI in IoT, across multiple sectors.This supportive environment has led to increased funding for startups and established firms engaged in AI and IoT, with the UAE's Technical Innovation Strategy pushing for a significant increase in technology adoption nationwide.
Notably, investments in AI and IoT sectors are expected to exceed 10 billion USD by 2025, as projected by the UAE Artificial Intelligence Strategy 2031. This solid backing encourages enterprises to adopt AI-driven IoT solutions, thereby creating a favorable climate for growth in the GCC AI in IoT Market.
Rising Demand for Enhanced Operational Efficiency in Industries
Industries across the GCC, including oil and gas, logistics, and healthcare, are increasingly adopting AI-powered IoT solutions to enhance operational efficiency and reduce costs. The oil and gas sector, which is a major contributor to the GCC economy, is projected to invest over 30 billion USD in digital transformation projects by 2025.This transformation is primarily driven by the necessity for real-time monitoring and predictive maintenance capabilities enabled by AI and IoT integration.
For example, organizations like Saudi Aramco and Abu Dhabi National Oil Company are leveraging AI to analyze vast amounts of data collected from IoT devices, leading to improved decision-making and optimized operations. Consequently, such trends in various sectors will greatly stimulate the GCC AI in IoT Market as businesses seek to innovate and maintain competitive advantages.
Growing Focus on Security and Surveillance Solutions
With an increasing need for enhanced security measures in both private and public sectors, the GCC is witnessing a surge in demand for AI and IoT-based surveillance systems. Major events, such as the FIFA World Cup 2022 in Qatar, have prompted significant investments in smart surveillance technologies to ensure safety and security.The demand for smart surveillance solutions is expected to grow by at least 15% annually over the next decade, driven by projects such as the Qatar Ministry of Interior's investment in cutting-edge AI-enabled surveillance systems.
Additionally, organizations like the Dubai Police are integrating AI technologies into their operations to enhance crime prevention and investigation capabilities. This trend contributes significantly to the growth prospects of the GCC AI in IoT Market, as the necessity for effective security solutions continues to escalate in the region.
AI in IoT Market Component Insights
The Component segment of the GCC AI in IoT Market focuses on critical elements that drive innovation and efficiency in various applications across industries. The region's investment in technology, particularly in smart cities and connected devices, underscores the relevance of this segment.Platforms play a pivotal role in orchestrating data flow, providing essential frameworks that integrate different IoT devices, while Software Solutions enable organizations to develop applications that leverage machine learning and data analytics for actionable insights.
The rise in demand for real-time data processing and analytics in sectors like healthcare, agriculture, and manufacturing propels the growth of these platforms and solutions within the sector. Moreover, the Services aspect encompasses consulting, implementation, and maintenance, which are vital for businesses seeking to adapt to the rapidly evolving digital landscape.
This component is particularly significant, as it facilitates organizations in optimizing their operations while ensuring seamless integration of AI capabilities into IoT ecosystems. The GCC region is witnessing a surge in startups and established firms alike focusing on these components, attributing to enhanced operational efficiency and improved decision-making.
In addition, governmental initiatives pushing for digital transformation across sectors further bolster the significance of the Component segment in this market. Understanding the interplay of these elements is crucial for stakeholders aiming to harness the full potential of AI in IoT within the GCC, as they navigate opportunities that arise from the rapid digitization of industries throughout the region.With projected advancements, the Component segment is poised to remain a dominant force within the broader ecosystem of the GCC AI in IoT Market, supporting a diverse range of applications and driving market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
AI in IoT Market Technologies Insights
The Technologies segment within the GCC AI in IoT Market signifies a pivotal area shaping the regional landscape with innovative advancements. Leveraging machine learning and deep learning, this sector enhances the capacity of IoT devices to process and analyze real-time data, promoting efficiency and accuracy in various applications.
Natural language processing plays a crucial role by enabling seamless human-device interactions, which can significantly improve user experiences and operational effectiveness. As businesses in the GCC integrate AI solutions into IoT, the demand for advanced analytics and intelligent automation surges, driving the need for skilled talent and fostering Research and Development initiatives.Moreover, various government-supported initiatives aim to bolster technology adoption, making it imperative for companies to adopt these technologies to maintain competitive advantages.
The ongoing emphasis on digital transformation across industries in the GCC, including smart cities, healthcare, and logistics, is poised to further catalyze growth in this segment, thereby presenting substantial opportunities for innovation and investment.As the market continues to evolve, the integration of these technological advancements positions the GCC as a dynamic player in the global AI in IoT landscape.
AI in IoT Market Vertical Insights
The GCC AI in IoT Market demonstrates significant potential in various verticals, reflecting diverse applications and emerging technologies that drive efficiency and productivity across multiple sectors. In Manufacturing, companies increasingly adopt AI-driven IoT solutions to enhance operational efficiency and predictive maintenance, resulting in accelerated production processes.The Energy and Utilities sector leverages these technologies to optimize resource management and enhance grid reliability, promoting sustainability and reducing operational costs. Transportation and Mobility benefit from AI in IoT through improved traffic management systems and smart logistics, leading to enhanced safety and reduced congestion.
The Banking, Financial Services, and Insurance (BFSI) segment utilizes AI for fraud detection and customer insights, thereby transforming traditional banking services. Government and Defense applications utilize AI in IoT for surveillance and resource allocation, ensuring enhanced security measures.Retail also gains from AI-driven IoT solutions, optimizing supply chains and enhancing the customer experience through personalized services. Furthermore, Healthcare and Life Sciences see advancements in remote patient monitoring and efficient healthcare delivery.Telecom companies are focusing on network optimization via AI in IoT to support growing data consumption. Each of these verticals holds significant importance, pushing the boundaries of innovation and service delivery in the GCC region.
GCC AI in IoT Market Key Players and Competitive Insights
The GCC AI in IoT market is witnessing significant competitive dynamics, driven by rapid technological advancements and increasing investments from various sectors seeking to leverage the combined power of artificial intelligence and the Internet of Things.As the region embraces smart solutions to enhance operational efficiency and foster economic diversification, businesses are racing to establish a strong foothold in this transformative space. The competitive landscape is shaped by established tech giants, innovative startups, and regional players, all striving to differentiate their offerings and expand their market share.
Key factors influencing competition include product innovation, strategic partnerships, and the ability to provide scalable and secure solutions tailored to the specific needs of diverse industries across the GCC.Oracle has positioned itself as a formidable player in the GCC AI in IoT market through its comprehensive cloud services and data management solutions, which are increasingly crucial for businesses looking to adopt AI-driven IoT systems.
The company’s strengths lie in its robust analytics capabilities and advanced AI tools, which enable organizations to optimize their IoT applications for better performance and insights. Oracle's presence in the region is marked by its commitment to localization, allowing it to cater effectively to the unique challenges and regulatory requirements of GCC markets.The synergy between Oracle's existing database solutions and its IoT offerings enables clients to harness data efficiently, paving the way for innovative applications across various sectors, including manufacturing, logistics, and energy.
NVIDIA is making significant strides in the GCC AI in IoT market, focusing on delivering high-performance computing solutions that facilitate the development and deployment of AI applications in IoT ecosystems. The company’s key products in the region include powerful AI platforms, graphics processing units, and AI frameworks that accelerate data processing and machine learning tasks.
NVIDIA’s strengths lie in its partnerships with local enterprises and governmental bodies, which enhance its market presence and foster collaborative initiatives. The company is also engaged in various mergers and acquisitions to strengthen its foothold and expand its product offerings in the GCC, diversifying its capabilities in the rapidly evolving IoT landscape.With its cutting-edge technology, NVIDIA is well-positioned to drive innovation and support organizations in their journey toward smart, connected solutions across the GCC.
Key Companies in the GCC AI in IoT Market Include
GCC AI in IoTMarket Developments
To accommodate the growing demand for cloud and AI technologies in the GCC, Oracle increased its capacity fivefold in January 2025 by expanding its AI infrastructure in the United Arab Emirates. At CES 2025 that same month, Siemens and NVIDIA presented ground-breaking developments in digital twin and industrial AI technologies, partnering to provide physically based visualization for product lifecycle management.
Accenture published its technological Vision 2025 report in April 2025, examining the possible effects of generative AI on a number of fronts, such as workforce development, customer experience, and technological development. Cisco released its AI Readiness Index in February 2025, which assesses how prepared multinational corporations are to implement AI solutions across six pillars.The company also unveiled new network technologies that enable service providers to rethink networks for AI. In order to improve its products with AI capabilities, SAP released more than 200 AI use cases and upgrades in Q1 2025 in March 2025.
Huawei promoted AI for good in September 2024, highlighting the technology's contribution to digital transformation and its potential to raise productivity and standard of living. Qualcomm's strong position in on-device AI was highlighted in July 2025 when the firm reported a 24% growth in its IoT segment due to rising demand for AI processing.
GCC AI in IoT Market Segmentation Insights
AI in IoT Market Component Outlook
AI in IoT Market Technologies Outlook
AI in IoT Market Vertical Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 207.49(USD Million) |
| MARKET SIZE 2024 | 266.0(USD Million) |
| MARKET SIZE 2035 | 1050.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 13.295% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Oracle, NVIDIA, Siemens, Google, Accenture, Cisco, SAP, Huawei, IBM, Intel, Amazon, Dell, Qualcomm, Microsoft, Ericsson |
| SEGMENTS COVERED | Component, Technologies, Vertical |
| KEY MARKET OPPORTUNITIES | Smart city developments, Industrial automation solutions, Enhanced predictive maintenance, Advanced healthcare applications, Sustainable energy management |
| KEY MARKET DYNAMICS | Growing adoption of smart technologies, Government support and investment, Increasing data security concerns, Rising demand for automation, Expanding connectivity infrastructure |
| COUNTRIES COVERED | GCC |
Frequently Asked Questions (FAQ):
The GCC AI in IoT Market is expected to be valued at 266.0 million USD in 2024.
By 2035, the GCC AI in IoT Market is anticipated to reach a valuation of 1050.0 million USD.
The anticipated CAGR for the GCC AI in IoT Market from 2025 to 2035 is 13.295%.
The key components of the GCC AI in IoT Market include platforms, software solutions, and services.
The market value for platforms in the GCC AI in IoT Market is expected to reach 320.0 million USD by 2035.
In 2024, the software solutions segment of the GCC AI in IoT Market is expected to be valued at 100.0 million USD.
The value of services in the GCC AI in IoT Market is projected to reach 330.0 million USD by 2035.
Major players in the GCC AI in IoT Market include Oracle, NVIDIA, Siemens, Google, Accenture, Cisco, SAP, Huawei, IBM, Intel, Amazon, Dell, Qualcomm, Microsoft, and Ericsson.
Innovation in technologies and applications is a significant growth driver in the GCC AI in IoT Market.
Regional dynamics such as investment in smart city initiatives and digital transformation are positively influencing the growth of the GCC AI in IoT Market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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