Saudi Arabia AI-Based Cybersecurity Market Overview
Market Size in 2024: USD 456.30 Million
Market Size in 2033: USD 4,284.48 Million
Market Growth Rate 2025-2033: 26.22%
According to IMARC Group’s latest research publication, “Saudi Arabia AI-Based Cybersecurity Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033”, The Saudi Arabia AI-based cybersecurity market size reached USD 456.30 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 4,284.48 Million by 2033, exhibiting a growth rate (CAGR) of 26.22% during 2025-2033.
How AI is Reshaping the Future of Saudi Arabia AI-Based Cybersecurity Market
- Revolutionizing Threat Detection and Response: AI-powered threat intelligence platforms are transforming cybersecurity operations through real-time anomaly detection, behavioral analysis, and predictive threat modeling, reducing incident response time by 60-70% while identifying advanced persistent threats (APTs) that bypass conventional security systems across critical infrastructure and government networks.
- Enabling Autonomous Security Operations: Machine learning algorithms are automating security operations center (SOC) functions through intelligent alert prioritization, automated investigation workflows, and orchestrated response actions, reducing false positives by 85% while enabling 24/7 threat monitoring and mitigation without human intervention, addressing the Kingdom’s cybersecurity talent shortage.
- Advancing Fraud Detection and Prevention: AI-driven fraud detection systems are protecting the BFSI sector through sophisticated pattern recognition, transaction monitoring, and identity verification technologies, preventing an estimated SAR 1.5 billion in fraudulent transactions annually while maintaining seamless user experiences for over 2 million banking customers across digital platforms.
- Strengthening Endpoint and Network Security: Deep learning models are enhancing endpoint protection through zero-day threat detection, malware classification, and behavioral monitoring capabilities, identifying and neutralizing 95% of ransomware attempts before encryption occurs while protecting the Kingdom’s expanding IoT ecosystem across smart city developments and industrial facilities.
- Facilitating Compliance and Risk Management: AI-powered compliance platforms are automating regulatory adherence through continuous monitoring, risk assessment, and policy enforcement aligned with the Personal Data Protection Law (PDPL) and Essential Cybersecurity Controls (ECCs), reducing compliance costs by 40% while ensuring data sovereignty and protection standards across government and private sector organizations.
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Saudi Arabia AI-Based Cybersecurity Market Trends & Drivers:
Saudi Arabia’s AI-based cybersecurity market is experiencing explosive growth driven by an escalating threat landscape, with the Kingdom experiencing 88 ransomware incidents in 2024 targeting critical sectors including manufacturing (25.41%), information technology (10.50%), and construction (9.94%). The Kingdom witnessed a 35% surge in cyber-attacks during 2024, with phishing and ransomware causing an estimated $1.5 billion in damages, while 70% of businesses experienced at least one cyber-attack, underscoring the urgent need for advanced AI-powered defense mechanisms capable of countering sophisticated threat actors.
Vision 2030’s ambitious digital transformation initiatives are accelerating AI-based cybersecurity adoption, with the government allocating over $14.9 billion for AI investments in early 2025, with significant portions dedicated to enhancing cybersecurity infrastructure powered by machine learning. The Kingdom’s designation as a Tier 1 “role-modeling” nation in the 2024 Global Cybersecurity Index by the UN’s International Telecommunication Union reflects years of strategic policy decisions, with the National Cybersecurity Authority (NCA) implementing comprehensive frameworks and the Saudi Data and Artificial Intelligence Authority (SDAIA) leading AI integration across critical infrastructure.
The rapid expansion of smart city projects and critical infrastructure is creating unprecedented demand for AI-based security solutions, with NEOM, The Line, and Red Sea Project requiring sophisticated cyber-physical protection systems to secure deeply networked environments. The Saudi smart cities market, valued at $6.72 billion in 2024 and projected to reach $18.74 billion by 2030, demands robust AI-driven cybersecurity to protect IoT devices, autonomous systems, and interconnected infrastructure. Over 6,000 government services (97% of total) have been digitized, requiring advanced protection for sensitive citizen data, while the expansion of digital health initiatives like the SEHA Virtual Hospital and fintech platforms under the Financial Sector Development Program necessitate AI-powered security frameworks. The implementation of the Personal Data Protection Law (PDPL) in September 2024 and updated Essential Cybersecurity Controls are driving organizations to adopt AI-based compliance and protection solutions, while 59% of IT professionals already utilize AI tools for cybersecurity according to recent surveys.
We explore the factors propelling the Saudi Arabia AI-based cybersecurity market growth, including technological advancements, consumer behaviors, and regulatory changes.
Saudi Arabia AI-Based Cybersecurity Industry Segmentation:
The report has segmented the market into the following categories:
Component Insights:
- Hardware
- Software
- Services
Type Insights:
- Network Security
- Endpoint Security
- Application Security
- Cloud Security
Application Insights:
- Identity and Access Management
- Risk and Compliance Management
- Data Loss Prevention
- Unified Threat Management
- Fraud Detection/Anti-Fraud
- Threat Intelligence
- Others
Technology Insights:
- Machine Learning
- Natural Language Processing
- Context-aware Computing
Vertical Insights:
- BFSI
- Retail
- Government and Defense
- Manufacturing
- Enterprise
- Healthcare
- Automotive and Transportation
- Others
Breakup by Region:
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Recent News and Developments in Saudi Arabia AI-Based Cybersecurity Market
- February 2025: DragonForce ransomware group targeted a prominent Riyadh-based real estate and construction firm, exfiltrating over 6TB of sensitive data, highlighting the evolving ransomware-as-a-service (RaaS) threat landscape and the critical need for AI-powered threat detection and response systems across Saudi enterprises.
- January 2025: The Saudi Data and Artificial Intelligence Authority (SDAIA) announced Project Transcendence, a landmark $100 billion initiative aimed at accelerating AI and advanced technology adoption, with significant investments allocated to AI-powered cybersecurity infrastructure and threat intelligence capabilities.
- September 2024: The Personal Data Protection Law (PDPL) became fully enforceable under SDAIA supervision, mandating comprehensive data protection measures and driving increased adoption of AI-based compliance monitoring and automated security controls across organizations processing Saudi resident data.
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