Overview of the Consumer Appliances and Intelligent Electronics for Industries in Saudi Arabia

The electronics industry in Saudi Arabia is experiencing remarkable growth and transformation in line with the goals set forth by the country in Vision 2030. This initiative aims to diversify the Saudi economy and reduce its reliance on oil revenues. The Saudi government is proactively investing in creating technology parks and special zones that will drive the growth of the electronics industry.

In 2023, the value of the electronics market in Saudi Arabia amounted to SAR 70.3Bn, and it is projected to experience a Compound Annual Growth Rate (CAGR) of 7.2% from 2023 to 2028, reaching a value of SAR 99.6Bn by 2028.

The leading segment in the industry is Consumer Appliances, representing a substantial 82.2% of the overall market, followed by Electronic Medical Devices and Industrial Electronics.

Recent Developments
  • In 2023, Saudi Arabia and India signed a Memorandum of Cooperation for collaboration in Digitization and Electronic Manufacturing. The agreement aims to enhance training, capacity building, and strengthen the Small and Medium-sized Enterprises (SME) and startup ecosystem through joint programs and information sharing.
  • At MWC2023, Saudi Telecom Company and Huawei forged a strategic partnership for the F5.5G era, including collaboration on industry standards, products, and solutions.
  • In Feb 2024, Crown Prince Mohammed bin Salman launched Alat, aiming to position Saudi Arabia as a global electronics and advanced industries hub. The company targets creating 39,000 jobs and contributing SAR 34.9Bn to non-oil GDP by 2030.
Challenges
  • Strict Information and Communications Technology (ICT) related regulations have restricted the penetration of electronic products, limiting their adoption in the rural region and impacting market growth.
  • Consumer price sensitivity has resulted in a slow adoption rate for new technologies in the electronic products market, impacting overall market growth.
  • The high prices of electronic components pose a challenge for both manufacturers and consumers, influencing the market dynamics and hindering widespread adoption.
  • Lack of awareness among consumers about electronic products is a significant challenge, affecting their willingness to adopt these technologies.
Market Segmentation

The electronics industry market is categorized into 3 broad segments, based on product type:

  • Consumer Appliances (82.2%): It includes smart home appliances, console gaming, smart TVs, smartphones, computer hardware, and audio devices. In 2023, the Consumer Appliances market in Saudi Arabia reached a total value of SAR 57.7Bn, and it is anticipated to reach SAR 81.0Bn by 2028. In 2023, computer hardware accounted for 51.0% of the total consumer appliances market, followed by smartphones at 13.0%.
  • Electronic Medical Devices (11.5%): It includes life-supporting or life-sustaining (LS) devices, medical diagnostics, imaging diagnostics, and patient aids such as diabetes, hearing aid, neurostimulation, diagnostic instruments, cardio, orthopedics, and smart wearables. The electronic medical devices market in Saudi Arabia was valued at SAR 8.1Bn in 2023 and is expected to reach SAR 10.8Bn by 2028.
  • Industrial Electronics (6.3%): It includes robotics (articulated robots, linear robots, cylindrical robots, delta robots, SCARA), smart heating and cooling, and network equipment. The Industrial Electronics market in Saudi Arabia reached SAR 4.4Bn in 2023 and is expected to grow to SAR 7.8Bn by 2028. The growth of the robotics industry in Saudi Arabia is propelled by a rising demand for automation in sectors such as healthcare, hospitality, retail, and construction, as well as an increasing preference for smart homes and appliances. Among all the product segments within the industrial electronics market, it is noteworthy that robotics, being the relatively newest market, represented a substantial 58.7% of the market share in 2023. This is particularly remarkable considering the relatively nascent stage of robotics.
Regulatory Environment & Sustainability

In 2021, the Saudi Standards, Metrology and Quality Organization (SASO) introduced a new Technical Regulation (TR) for Restriction of Hazardous Substances (RoHS) in Electrical and Electronic Equipment. This regulation outlines hazardous materials, specifying the conformity assessment procedure for importing electronic products into Saudi Arabia. Understanding and complying with these requirements is essential for those involved in importing electronics into the Kingdom.

The Saudi Food and Drug Authority (SFDA) oversees the regulation of medical devices and In Vitro Diagnostics (IVDs) available and distributed in Saudi Arabia. A Medical Device Market Authorization (MDMA) issued by the SFDA is mandatory for the marketing of medical devices, including IVDs, within the KSA.

The Kingdom has set up key institutions like the Saudi Data & AI Authority (SDAIA), National Center for Artificial Intelligence (NCAI), and National Data Management Office (NDMO). Additionally, it has implemented regulatory frameworks such as the National Data Governance Interim Regulations and IoT Regulatory Framework for the governance of robotics and automation.

Saudi Arabia’s Vision 2030 focuses on sustainability, aiming for Net Zero by 2060. The Kingdom pioneers’ solutions like the Circular Carbon Economy (CCE) and a diverse energy mix aims for 50.0% of energy from renewables by 2030.

 

Import-Export Analysis

Saudi Arabia’s electronics imports reached SAR 56.1Bn in 2023, growing at a CAGR of 3.9% since 2019, when it was SAR 48.0Bn. Air conditioning units, PCs, smartphones, and surgical and medical equipment are among the country’s top electronics imports. In 2021, China was the largest supplier of electronics to Saudi Arabia, including smartphones, computers, and smart heating and cooling devices. The US significantly contributed to the import of electronic medical devices, patient aids, and computers. Vietnam and India were the second and third largest suppliers of smartphones, respectively. Smart heating and cooling devices were primarily sourced from Thailand and the Republic of Korea, ranking them as the second and third largest suppliers.

(Note: HS codes: 8415, 8471, 8517, and 9018 have been considered to generate above mentioned insights as they account for the largest imports by value.)

In 2023, Saudi Arabia’s exports of electronic products reached SAR 11.9Bn, showing a significant increase from SAR 2.0Bn in 2019, with a CAGR of 53.2%. In 2021, the UAE was Saudi Arabia’s major trading partner, particularly for smartphones, computers, and smart heating and cooling devices. Bahrain and China were the second and third largest trading partners for Saudi Arabia in smartphones. Bahrain and the USA were the primary destinations for Saudi Arabia’s computer exports, ranking as the second and third most significant partners in this category.

(Note: HS codes: 8415, 8471, 8517, and 9018 have been considered to generate above mentioned insights as they have the largest imports by value.)

Local Manufacturing in the Electronics Industry

In 2023, local manufacturing within the electronic industry in Saudi Arabia was estimated to be around 41.1% of the overall electronics market. This expansion aligns with the goals of Saudi Arabia’s Vision 2030, which seeks to cultivate a more diverse and resilient economy. The vision involves the execution of diverse initiatives concentrated on advancing manufacturing across various sectors.

 

Competitive Landscape

The Electronics Industry in Saudi Arabia is largely dominated by global giants and specialized players, each carving out their niche in the market through diverse product offerings

Consumer Appliances:

Apple: Apple was founded in 1976 and reported an annual revenue of SAR 1,444.3Bn in 2023. Apple uses third parties to sell its products in Saudi Arabia. Their product lineup includes laptops, phones, iPads, watches, earphones, headphones, TVs and accessories, monitors, PCs, and smart speakers.

LG Electronics: LG Corporation, originally known as Lucky-Goldstar was established in 1947 and has since grown into a prominent South Korean conglomerate. The company boasts a diverse portfolio achieving an annual revenue of SAR 237.4Bn in 2023. In 1995, LG entered the Saudi Arabian market through a partnership with the Shaker Group, offering a comprehensive range of products including TVs & soundbars, lifestyle screens, wireless earbuds, speakers, projectors, refrigerators, washing machines, dryers, dishwashers, vacuum cleaners, cooking appliances, monitors, residential & commercial air conditioners, and air purifiers.

Samsung: Founded in 1969, Samsung Electronics recorded an annual revenue of SAR 825.5Bn in 2023. Samsung entered Saudi Arabia in 1978, establishing an office in Riyadh and securing the contract for the King Faisal Medical City hospital complex. The company offers various products, including tablets, watches, earphones, projectors, sound devices, refrigerators, washing machines, vacuum cleaners, dishwashers, cooking appliances, air conditioners, air purifiers, and monitors.

Bosch: Founded in 1886, Bosch reported an annual revenue of SAR 373.5Bn in 2023. Since 1965. Bosch has been represented in Saudi Arabia by the Juffali group, establishing its first sales and workshop office in Jeddah in 1966. Their product lineup includes ovens, microwaves, washer dryers, dishwashers, fridge freezers, coffee machines, toasters, vacuum cleaners, and bathroom scales.

Haier: Established in 1984, the Haier Group is a global leader in solutions for enhanced living and digital transformation, with a revenue of SAR 185.1Bn in the year 2022. In Saudi Arabia, Haier partnered with local group Al Jabr Electronics in 1998 to distribute a wide array of products, including refrigerators, washing machines, freezers, air conditioners, TVs, dryers, and ovens.

Electronic Medical Devices:

Baxter International: Founded in 1931, Baxter recorded an annual revenue of SAR 56.6Bn in 2023. In 2009, Baxter partnered with The Olayan Group to establish Baxter Company Limited (BCL), marking its entry into the Saudi Arabian market. The company specializes in infusion systems, specialized patient monitoring, IV preparation and compounding, acute renal therapy, hemodialysis, and peritoneal dialysis.

Boston Scientific Corporation: Boston Scientific Corporation was founded in 1978 and reported an annual revenue of SAR 48.8Bn in 2023. The company established a direct presence in Saudi Arabia in 2021, following years of operating through indirect channel partners. Its diverse product portfolio includes access devices, diagnostics, mapping and navigation equipment, ablation systems, ultrasound imaging systems, electrophysiology recording systems, CO2 laser systems, deep brain stimulation systems, defibrillators, direct visualization systems, and thrombectomy systems.

Medtronic: Medtronic was established in 1949 and reported an annual revenue of SAR 117.1Bn in 2023. Recognizing the significant opportunities in the Saudi Arabian market, Medtronic entered the region in 2013 and established Medtronic Saudi Arabia in 2015.Their product portfolio includes electrosurgical hardware, pacemakers, hemostasis management systems, oxygenators, monitoring systems, Integrated Power Console (IPC) systems, parathyroid detection systems, oximeters, ventilators, and visualization solutions.

Fresenius Medical Care Ag & Co: Founded in 1996, Fresenius Medical Care reported an annual revenue of SAR 160.1Bn in 2023. The company entered the Saudi Arabian market in 2022 by establishing its first Nephrocare clinic in Riyadh. Fresenius Medical Care’s product offerings include peritoneal dialysis machines, home hemodialysis machines, acute dialysis machines, and dialyzers.

General Electric Healthcare: Founded in 1892, GE HealthCare is a leading innovator in global medical technology and digital solutions, with an annual revenue of SAR 68.6Bn in 2023. Since the 1980s, GE HealthCare has been established in Saudi Arabia, offering products such as imaging, ultrasound, diagnostic ECG, and ventilators.

Industrial Equipment:

Johnson Controls International: Johnson Controls was founded in 1885 and headquartered in Cork, Ireland. As of September 30, 2023, it reported annual net sales of SAR 100.5Bn. In Saudi Arabia, Johnson Controls Arabia was established in 1991, initially known as AlSalem Johnson Controls, and became a leading distributor of York HVAC products. Following York’s acquisition by Johnson Controls in 2005, Johnson Controls Arabia merged with its parent company, establishing itself as a premier multi-industrial entity in the region. The company’s product range includes building automation and controls, industrial refrigeration, fire detection and suppression, security, energy efficiency, digital solutions, renewable solutions, residential and smart homes, air conditioning products, air purifiers, HVAC products, refrigeration, and smart building technologies.

Arabian Robotics Company: Founded in 2016 in Dammam, the Arabian Robotics Company is a globally leading developer and provider of industrial robotics solutions with an annual revenue of SAR 18.7Mn. The company specializes in creating robotic solutions for industrial applications, offering competitive services, and forming alliances with leading technology firms. Their product lineup includes the Inspection Robot (SAIR) and various drones.

ABB Group: Founded in 1883, ABB is a technology leader specializing in electrification and automation, with an annual revenue of SAR 114.0Bn in 2023. In Saudi Arabia, ABB established its factory in Riyadh’s second industrial city in 1986, focusing on a range of products including control room consoles, operator workplaces, robotic solutions such as articulated, collaborative, and autonomous mobile robots, as well as EV charging solutions.

Trane Technologies: Trane was founded in 1885, formally incorporated in 1913. Trane has grown to achieve an annual revenue of SAR 66.4Bn in 2023. In 2017, Trane expanded into Saudi Arabia through a joint venture with its Jeddah-based distributor, Dallah Trading Company, culminating in the establishment of a new manufacturing facility in KAEC.  The company offers a wide range of products, including smart thermostats, air conditioners, VRF systems, chillers, heat pumps, and various building automation solutions under its portfolio.

General Electric Grid Solutions: Grid Solutions, a division of GE Renewable Energy, was founded in 1879 and operates with an annual revenue of SAR 255.0Bn (2023). GE introduced their smart grid solutions to Saudi Arabia in 2012, showcasing products such as asset monitoring, protection relays, automation and control systems, substation solutions, communications tools, and related automation and protection services.

 

 

Share

Related White paper

See More

Overview of the Electronic Medical Devices in Saudi Arabia

Read More

Regional Headquarters Program, Saudi Arabia

Read More

Local Content Policies

Read More