Saudi Arabia Retail Technology Market

Saudi Arabia Retail Technology Market Overview:

The Saudi Arabia retail technology market size reached USD 440.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 3,750.0 Million by ​2033​, exhibiting a growth rate (CAGR) of 26.88% during 2025-2033. The increased digital transformation, rising e-commerce, government initiatives under Vision 2030, enhanced consumer experiences, artificial intelligence (AI) and the Internet of Things (IoT) adoption, expanding mobile payments, and the demand for data-driven insights in retail are some of the key factors influencing the market growth.

Saudi Arabia Retail Technology Market Trends:

The digital transformation fueled by Vision 2030:

The digital transformation initiatives under Vision 2030 have been pivotal in driving Saudi Arabia retail technology market growth. The Saudi government’s strategic push to diversify the economy and reduce dependency on oil is enhancing digitalization across the country. Vision 2030 emphasizes the modernization of various sectors, including retail, by promoting technology adoption across the board. This directive has led to a widespread integration of digital tools to enhance consumer engagement, streamline inventory management, and improve operational efficiencies within the retail sector. On 21^st February 2025, Riyadh and Jeddah announced spearheading a retail transformation in Saudi Arabia, with 394,900 square meters of new lifestyle retail space, encompassing food and beverage as well as entertainment, scheduled for completion by 2027. This initiative is part of the rapid expansion outlined in Vision 2030. As retailers seek to align with the goals of Vision 2030, they are increasingly adopting technology to create omnichannel experiences, where physical and digital retail channels blend seamlessly. This shift allows businesses to reach consumers through multiple touchpoints, improve brand loyalty, and provide personalized shopping experiences that meet modern consumer demands, thus strengthening Saudi Arabia retail technology market outlook.

The rapid expansion of e-commerce:

The rapid expansion of e-commerce in Saudi Arabia is influencing the retail sector, contributing to the increasing demand for retail technology solutions. As per a report published by the IMARC Group, the size of the e-commerce market in Saudi Arabia was valued at USD 222.9 Billion in 2024. It is projected to grow to USD 708.7 Billion by 2033, reflecting a compound annual growth rate (CAGR) of 12.8% from 2025 to 2033. With high internet and smartphone penetration, Saudi consumers are increasingly embracing online shopping, especially for convenience and broader product availability. As a result, retailers are adopting digital platforms, such as mobile apps and e-commerce websites, to meet this growing demand. Additionally, the rise in e-commerce has driven the need for advanced logistics and payment solutions, as retailers focus on optimizing last-mile delivery, ensuring secure payment processes, and offering flexible payment options such as digital wallets. This trend has also elevated interest in digital marketing, customer relationship management (CRM) tools, and data analytics, allowing retailers to better understand consumer preferences and anticipate shopping trends, which is further expanding the Saudi Arabia retail technology market share.

The adoption of advanced technologies such as AI and IoT

The growing adoption of advanced technologies including AI and IoT is transforming Saudi retail operations. AI-powered solutions are enabling predictive analytics, personalized recommendations, and customer service automation, such as chatbots. These tools help retailers improve customer satisfaction, optimize inventory, and forecast demand more accurately. On 10^th December 2024, Apple announced plans to enhance its presence in Saudi Arabia by launching an online store in 2025, followed by flagship retail locations in 2026. The company is also committing USD 2.7 Billion towards developer training, digital payment systems, and technological infrastructure, all aimed at supporting the growth objectives outlined in Vision 2030. With the help of smart shelves and interactive displays, IoT-enabled devices will aid real-time inventory tracking, enhanced store management, and enriched in-store experience. These technologies enable retailers to gather valuable insights into consumer behavior, enhance supply chain management, and create interactive experiences within the store. This is also contributing to the market growth with the increasing integration of such innovations to improve the retail operations that are agile and more in sync with the digital habits of the Saudi consumers.

Saudi Arabia Retail Technology Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on solution and application.

Solution Insights:

• Hardware
• Software

The report has provided a detailed breakup and analysis of the market based on the solution. This includes hardware and software.

Application Insights:

• Visual Marketing
• Smart Label
• Smart Payment System
• Intelligent System
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes visual marketing, smart label, smart payment system, intelligent system, and others.

Regional Insights:

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

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Retail Technology Market News:

• On October 2024, Zid, an Arab e-commerce platform launched an Amazon marketplace integration, allowing merchants to connect their stores to Amazon, reaching a broader regional customer base and streamlining the e-commerce management experience. This exemplifies Zid's dedication to providing merchants with tools to launch, grow, and scale effectively.

Saudi Arabia Retail Technology Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia retail technology market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia retail technology market on the basis of solution?
• What is the breakup of the Saudi Arabia retail technology market on the basis of application?
• What is the breakup of the Saudi Arabia retail technology market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia retail technology market? 
• What are the key driving factors and challenges in the Saudi Arabia retail technology market?
• What is the structure of the Saudi Arabia retail technology market and who are the key players?
• What is the degree of competition in the Saudi Arabia retail technology market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia retail technology market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia retail technology market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia retail technology industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.