Robotics has a bright future in Saudi Arabia's Vision 2030: Infinium Global Research

 

Robotics has a bright future in Saudi Arabia's Vision 2030: Infinium Global Research

Robotics plays a pivotal role in the realization of Saudi Arabia's Vision 2030, a comprehensive reform initiative aimed at diversifying the economy and reducing reliance on oil revenues.

Infinium Global Research anticipates that the robotics sector in Saudi Arabia will contribute significantly to economic growth, efficiency, and innovation across industries such as manufacturing, construction, and healthcare.

 

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Opportunity:

The artificial intelligence and robotics sector in Saudi Arabia is projected to contribute an estimated $135.2 billion, equivalent to 12.4 percent of the country's GDP by 2030. The government is actively promoting initiatives, including the automation of 4,000 manufacturing plants over the next five years. PricewaterhouseCoopers estimates a robust annual growth rate of 31 percent in AI and automation contributions from 2018 to 2030. Robotics and AI integration is a key focus in smart city projects, exemplified by NEOM, as well as in logistics strategies, highlighting Saudi Arabia's commitment to technological advancement.

 

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Market Attractiveness:

The integration of robotics offers substantial cost reduction potential, freeing up human labor for strategic initiatives, enhancing customer service, and improving the overall employee experience. Robotics companies in Saudi Arabia are encouraged to educate businesses on the cost-saving benefits of automation. Startups within the Kingdom should embrace innovation and present automation concepts to attract investments, with expectations of robotics investments exceeding $150 million in the next two years.

Investment:

Saudi Arabia has experienced a remarkable 52 percent surge in the registration of robotics firms, reaching 2,344 in Q2 2023. Riyadh led registrations with 1,387, followed by Makkah, the Eastern Province, Madinah, and Qassim. Venture capital firms in Saudi Arabia, including Prosperity7, have shown keen interest in the robotics sector, with investments such as $150 million in the Chinese startup Jaka Robotics. The regional market for industrial and service robots is poised to reach $4 billion by 2025.

 

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Recent Development:

In February 2023, Collins Aerospace collaborated with SRB Aerial Systems for the research, development, and deployment of unmanned aerial systems and robotics. This aligns with Saudi Arabia's Vision 2030, promoting locally owned and manufactured products. Additionally, in March 2023, Wave Lifestyle Tech partnered with the Saudi government to expand robot-based services, focusing on the food industry as part of Saudi Arabia's broader digital transformation initiatives.

Source: https://finance.yahoo.com/