Saudi Arabia 5G Network Infrastructure Market - Forecasts From 2025 To 2030

Report CodeKSI061618056
PublishedOct, 2025

Description

The Saudi Arabia 5G Network Infrastructure Market is forecast to surge at a CAGR of 25.23%, reaching USD 3.133 billion in 2030 from USD 1.017 billion in 2025.

Saudi Arabia 5G Network Infrastructure Market Key Highlights

  • The implementation of Saudi Vision 2030, particularly its digital transformation pillar, directly drives demand for massive, high-density 5G infrastructure to enable smart city projects like NEOM and The Line.
  • The Communications, Space and Technology Commission (CST) has actively released and re-farmed spectrum, including low-band (600 MHz) and millimeter-wave (mmWave), creating the necessary frequency resources that mobile network operators (MNOs) require for network expansion and service differentiation.
  • Major telecom operators—STC, Zain KSA, and Mobily—have aggressively rolled out Non-Standalone (NSA) and Standalone (SA) 5G networks, with competitive dynamics propelling continuous investment in Radio Access Network (RAN) and backhaul infrastructure to achieve wider geographic coverage and higher throughput.
  • Enterprise-specific connectivity demands from critical sectors, notably Manufacturing, Energy (ARAMCO), and Logistics, accelerate the need for Private 5G Networks and advanced 5G capabilities such as network slicing and ultra-low latency, shifting infrastructure focus from consumer broadband to industrial automation.

The Saudi Arabian 5G Network Infrastructure market stands as a primary beneficiary of the Kingdom’s aggressive public-sector commitment to digital transformation. This strategic national imperative, anchored by Vision 2030, mandates the swift deployment of a world-class digital backbone to support economic diversification away from hydrocarbon dependency. The market is defined by a dynamic interplay between regulatory facilitation—specifically through the Communication, Space and Technology Commission (CST)—and intense competition among three key MNOs. This environment creates a robust demand signal for 5G network components, including RAN, 5G Core, and high-capacity transport solutions. The focus is increasingly moving beyond simple mobile broadband to enabling foundational infrastructure for next-generation, high-revenue enterprise use cases across various industrial and public sectors.

Saudi Arabia 5G Network Infrastructure Market Analysis

Growth Drivers

  • Saudi Vision 2030 Initiatives: The Saudi Vision 2030 initiatives serve as the central growth catalyst, explicitly requiring 5G infrastructure as the foundational layer for flagship smart city developments like NEOM. These projects necessitate ultra-high-capacity and ubiquitous connectivity to enable real-time data processing, AI integration, and autonomous systems, directly translating into substantial contract demand for 5G Core and advanced RAN equipment. Furthermore, the surging adoption of data-intensive applications, including 4K video, augmented reality (AR), virtual reality (VR), and industrial Internet of Things (IoT), compels MNOs to continuously upgrade and densify their networks. This data-driven consumption mandates immediate investment in Transport and Backhaul Network capacity to prevent congestion and maintain service quality, directly increasing the market's value proposition.

Challenges and Opportunities

  • Capital Expenditure and Technical Expertise: A primary challenge involves the immense capital expenditure and technical expertise required to manage multi-band spectrum deployment, especially integrating high-band millimeter-wave (mmWave) for high-density areas, which necessitates a significantly higher number of small cells and advanced radio units. This complexity can constrain the speed of localized deployment. Conversely, the transition to 5G Standalone (SA) architecture presents a significant opportunity. The deployment of a full 5G Core network, separate from the existing 4G infrastructure, unlocks advanced features like network slicing and ultra-reliable low-latency communication (URLLC), creating new revenue streams in the enterprise segment, particularly in sectors such as industrial automation and telemedicine, thereby stimulating fresh infrastructure demand.

Raw Material and Pricing Analysis

The Saudi Arabian 5G Network Infrastructure Market is fundamentally a physical product market encompassing hardware components such as remote radio units (RRUs), baseband units (BBUs), high-capacity routers, and fiber optic cable. Global supply chain reliance on advanced semiconductors and specialized passive electronic components dictates pricing volatility. Geopolitical tensions and sustained global demand for semiconductor chipsets create a supply constraint, indirectly increasing the cost of 5G infrastructure hardware. The price of specialized fiber optic cables and associated trenching and installation services constitutes a major local capital outlay, influenced by the cost of essential raw materials like optical-grade glass and polymer coatings, which directly impacts project budgets for Transport/Backhaul Network deployment across the Kingdom’s vast geography.

Supply Chain Analysis

The global supply chain for 5G infrastructure remains highly concentrated, primarily flowing from key production hubs in East Asia (China, South Korea) and North America/Europe (Finland, Sweden, USA). This dependence creates logistical complexities, including customs clearance, transportation delays, and direct exposure to international trade policy shifts. Key production dependencies are rooted in highly specialized electronics, radio frequency components, and software-defined networking elements. Saudi MNOs rely on established global vendors for core network elements and advanced RAN components, which necessitates a stringent focus on supply chain resilience and security compliance, particularly due to the strategic nature of national telecommunications infrastructure.

Government Regulations

Jurisdiction Key Regulation / Agency Market Impact Analysis
Saudi Arabia Communications, Space and Technology Commission (CST) – National Spectrum Strategy CST actively auctions and re-farms large blocks of spectrum (e.g., 600 MHz, 3.5 GHz, mmWave). This direct regulatory action increases MNO network capacity and compels continuous investment in new-band-compatible RAN and antenna infrastructure, accelerating demand.
Saudi Arabia Saudi Vision 2030 Digital Transformation Program The national strategy mandates ICT sector development. This government-driven demand provides fiscal stimulus and a guaranteed pipeline of large-scale infrastructure projects (e.g., smart cities), ensuring sustained long-term demand for all 5G network components.
Saudi Arabia Local Content and Procurement Regulations (Rawafed Program, STC) Regulations encouraging local procurement and the creation of technology centers (e.g., through partnerships with global vendors) increase the domestic value-add requirement. This can create demand for local assembly/service operations, but also introduces localization complexity for international suppliers.

In-Depth Segment Analysis

By Technology: Standalone (SA)

The transition to the 5G Standalone (SA) deployment mode is a critical growth driver for 5G Core Network and Edge Infrastructure components. Unlike the initial Non-Standalone (NSA) architecture, which relied on the existing 4G core, SA deployment mandates a completely new, cloud-native 5G Core, which includes the Access and Mobility Management Function (AMF), Session Management Function (SMF), and User Plane Function (UPF). The direct demand for these new, virtualized software and hardware elements is driven by the necessity to unlock advanced 5G capabilities—specifically, network slicing and URLLC—that are impossible in an NSA environment. Enterprises in the Industrial Automation sector require these features to deploy mission-critical applications like robotic control and real-time machine vision. Consequently, the MNO's competitive imperative to attract high-value enterprise clients compels investment in the SA Core and distributed Edge Infrastructure, moving network intelligence closer to the user to meet the stringent latency requirements of vertical industries.

By End-User: Manufacturing and Industrial Automation

The Manufacturing and Industrial Automation sector represents a specialized and high-growth segment for the 5G Network Infrastructure market. This segment’s growth is not driven by ubiquitous coverage but by high-reliability, low-latency private network deployments within specific industrial zones and facilities. Large entities, such as the national energy giant ARAMCO, are utilizing 5G to enable industrial IoT (IIoT), real-time asset tracking, predictive maintenance, and remote-controlled operations within their facilities. This direct application compels MNOs and infrastructure vendors to supply dedicated Private 5G Networks, which requires specialized small-cell RAN equipment, a dedicated, localized 5G Core solution (often hosted on-premise or at the network edge), and network management and orchestration tools designed for enterprise-level control. The economic benefit of increased operational efficiency and safety in these critical industrial settings justifies the significant investment, directly sustaining the high-end, customized demand for 5G infrastructure solutions.

Competitive Environment and Analysis

The Saudi Arabian 5G Network Infrastructure market operates as an oligopoly for MNOs (STC, Zain KSA, Mobily) but features a highly international and fiercely competitive ecosystem of global equipment vendors supplying them. The competitive dynamic among MNOs—driven by a race to achieve network coverage and speed leadership—ensures a constant demand for new infrastructure. Key suppliers leverage technological differentiation (e.g., cloud-native RAN, SA Core capabilities) and local partnership commitments to secure large-scale contracts.

Ericsson

Ericsson maintains a strong strategic position as a long-term partner to Saudi MNOs. Its strategy focuses on intellectual property and advanced technology, including the extension of its research and development (R&D) partnership with King Abdullah University of Science & Technology (KAUST), announced in July 2024, to advance 5G and 6G technologies. This academic collaboration demonstrates a commitment to aligning with Vision 2030's talent development and technological advancement goals. Furthermore, its focus on autonomous network capabilities, evidenced by a Memorandum of Understanding (MoU) with Mobily in early 2025 to explore intent-driven autonomous networks, positions the company as a provider of advanced, operational efficiency-focused network management and orchestration software.

Huawei Technologies Co., Ltd.

Huawei is a significant and long-established supplier, particularly in the Radio Access Network (RAN) and Transport segments. The company's strategic positioning leverages a full-suite 5G solution offering and demonstrated capability in rapid, large-scale deployment. Huawei’s commercial rollout of its SuperLink, a multi-band wireless transmission solution, with STC to enhance 5G connectivity in remote areas, highlights its focus on developing customized solutions for the Kingdom’s unique geographical challenges and its ability to deliver cost-effective, long-distance backhaul connectivity. This focus on extending coverage to underserved areas directly supports the MNOs' network expansion goals.

Nokia

Nokia reinforces its presence through a strategic focus on network innovation and specialized solutions. In July 2025, Nokia, in collaboration with the CST, Mobily, and Zain KSA, completed a pilot using shared indoor 5G Standalone (5G SA) spectrum in the 4.0–4.1 GHz band. This initiative, utilizing its Shikra radios and Multi-Operator Core Network (MOCN) software, aims to significantly reduce deployment costs and complexity for indoor coverage in public and enterprise venues. This strategic focus on shared infrastructure and indoor coverage addresses a critical market gap and positions Nokia as a key enabler for both public and private enterprise 5G adoption.

Recent Market Developments

  • July 2025: Indoor 5G SA Network Sharing Pilot Nokia, in partnership with the Communication, Space & Technology Commission (CST), neutral host provider ACES NH, Mobily, and Zain KSA, completed a pilot deployment of indoor 5G Standalone (5G SA) coverage using shared spectrum in the 4.0–4.1 GHz band. This development, which utilizes Nokia's Shikra radios and active sharing software, proves that a single neutral host system can serve multiple operators, directly reducing deployment costs and accelerating the availability of high-speed indoor 5G services for both public and private networks.
  • January 2025: 4G/5G Femtocell Solution for Enterprises Nokia and Zain KSA announced a collaboration to deploy the region's first 4G/5G Femtocell solution for enterprise clients. The initiative involves deploying Nokia’s 4G and 5G smart nodes to ensure secure and reliable indoor network availability at diverse business locations. This product launch is specifically designed to enhance indoor connectivity for Zain KSA's B2B clients, demonstrating a tangible shift in MNO infrastructure investment towards specialized enterprise-grade indoor coverage solutions.

Saudi Arabia 5G Network Infrastructure Market Segmentation

  • BY COMPONENT
    • RAN
    • 5G Core Network
    • Transport or Backhaul Network
    • Edge Infrastructure
    • Network Management and Orchestration
    • Others
  • BY SPECTRUM BAND
    • Low-band (<1 GHz)
    • Mid-band (1-6 GHz)
    • High-band/ mmWave (>24 GHz)
  • BY DEPLOYMENT TYPE
    • Public Carrier Networks
    • Private 5G Networks
    • Shared Infrastructure
    • Hybrid
  • BY DEPLOYMENT MODE
    • Standalone
    • Non-Standalone
  • BY END-USER
    • Telecom Operators
    • Manufacturing and Industrial Automation
    • Transportation & Logistics
    • Energy and Utilities
    • Healthcare
    • Education
    • Retail and Hospitality
    • Public Sector
    • Other Enterprises

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter's Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. SAUDI ARABIA 5G NETWORK INFRASTRUCTURE MARKET BY COMPONENT

5.1. Introduction

5.2. RAN

5.3. 5G Core Network

5.4. Transport or Backhaul Network

5.5. Edge Infrastructure

5.6. Network Management and Orchestration

5.7. Others

6. SAUDI ARABIA 5G NETWORK INFRASTRUCTURE MARKET BY SPECTRUM BAND

6.1. Introduction

6.2. Low-band (<1 GHz)

6.3. Mid-band (1-6 GHz)

6.4. High-band/ mmWave (>24 GHz)

7. SAUDI ARABIA 5G NETWORK INFRASTRUCTURE MARKET BY DEPLOYMENT TYPE

7.1. Introduction

7.2. Public Carrier Networks

7.3. Private 5G Networks

7.4. Shared Infrastructure

7.5. Hybrid

8. SAUDI ARABIA 5G NETWORK INFRASTRUCTURE MARKET BY DEPLOYMENT MODE

8.1. Introduction

8.2. Standalone

8.3. Non-Standalone

9. SAUDI ARABIA 5G NETWORK INFRASTRUCTURE MARKET BY END-USER

9.1. Introduction

9.2. Telecom Operators

9.3. Manufacturing and Industrial Automation

9.4. Transportation & Logistics

9.5. Energy and Utilities

9.6. Healthcare

9.7. Education

9.8. Retail and Hospitality

9.9. Public Sector

9.10. Other Enterprises

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Ericsson

11.2. Nokia

11.3. Huawei Technologies Co., Ltd.

11.4. Cisco Systems, Inc.

11.5. Samsung Electronics Co., Ltd.

11.6. Mavenir Systems, Inc.

11.7. Parallel Wireless, Inc.

11.8. NEC Corporation

11.9. Juniper Networks, Inc.

11.10. Qualcomm Technologies

11.11. Hewlett-Packard Enterprise Company

11.12. ZTE Corporation

11.13. Rakuten Symphony

12. RESEARCH METHODOLOGY

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Ericsson

Nokia 

Huawei Technologies Co., Ltd.

Cisco Systems, Inc.

Samsung Electronics Co., Ltd.

Mavenir Systems, Inc.

Parallel Wireless, Inc.

NEC Corporation

Juniper Networks, Inc.

Qualcomm Technologies

Hewlett-Packard Enterprise Company

ZTE Corporation

Rakuten Symphony

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