As Saudi Arabia continues to invest in its sweeping “Vision 2030” plan to jumpstart the nation’s logistics infrastructure, the effort will spark fast growth in robotics, according to a report from Infinium Global Research, an India-based market analysis firm.
The master plan calls for building dozens of distribution centers and transforming the kingdom into a “global logistics hub” connecting the continents of Asia, Europe, and Africa. The idea is to diversify the nation's economy and decrease its reliance on oil revenues, but enabling that new capability will require a pivotal role for robotics and automation, Infinium said.
To reach that goal, Saudi Arabia's artificial intelligence (AI) and robotics sector is poised to make a significant impact, contributing an estimated $135.2 billion, equivalent to 12.4% of the country's GDP by 2030, the report said, citing PricewaterhouseCoopers. The government is actively propelling initiatives like the automation of 4,000 manufacturing plants over the next five years. And the kingdom's logistics development strategy underscores the integration of robotics and AI into smart city projects, including NEOM.
Saudi Arabia has already undertaken substantial initiatives to facilitate the adoption of robotics in its economy, nurturing an annual growth rate in the AI and automation sector of an average 31% from 2018 to 2030.
According to Infinium, Saudi startups are known for their groundbreaking solutions, and the kingdom is set to witness a significant uptick in robotics investments, with expectations of exceeding $150 million in the next two years, in response to the rapid development of smart cities and the digital transformation wave gaining momentum. For example, the kingdom has witnessed a 52% surge in the registration of robotics firms, reaching 2,344 in the second quarter of 2023, compared to 1,537 in the same period the previous year.
