Digital Agriculture in Saudi Arabia Trends and Forecast
The future of the digital agriculture market in Saudi Arabia looks promising with opportunities in the advisory service, precision agriculture & farm management, quality management & traceability, digital procurement, agri e-commerce, and financial service markets. The global digital agriculture market is expected to reach an estimated $37.8 billion by 2031 with a CAGR of 10.8% from 2025 to 2031. The digital agriculture market in Saudi Arabia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increasing awareness of digital agriculture and helping to increase adoption is a strategic government policy, advances in technology, minimising waste and efficient use of resources, and the reducing wastage and efficient use of resources.
• Lucintel forecasts that, within the operation category, monitoring & scouting is expected to witness the highest growth over the forecast period due to farmers and other stakeholders can remotely record any disruption in farm work through scouting and monitoring.
• Within the service category, advisory services are expected to witness the highest growth due to most tasks are handled by service providers, who also advise farmers on how to increase output.
Emerging Trends in the Digital Agriculture Market in Saudi Arabia
Saudi Arabia is accelerating the digital transformation of its agriculture sector as part of its Vision 2030 goals, aiming for enhanced food security, water efficiency, and sustainable desert farming. With limited arable land and water resources, the adoption of precision agriculture and data-driven tools is critical. Government backing and private-sector partnerships are fostering innovations in controlled-environment farming, smart irrigation, and AI-powered systems. These trends reflect the Kingdom‘s push to diversify its economy while creating a more self-reliant and tech-enabled agricultural ecosystem across its harsh climatic conditions.
• Controlled-Environment Agriculture (CEA) Growth: Saudi Arabia is scaling up CEA technologies like vertical farming and hydroponics to produce food in climate-controlled indoor spaces. This approach minimizes land and water use, crucial in arid zones. Digital systems monitor temperature, humidity, and nutrient delivery in real-time, ensuring higher yields. The trend supports year-round crop production and enhances food resilience in desert conditions. It’s particularly significant in urban centers like Riyadh and Neom, aligning with broader smart city initiatives.
• IoT-Enabled Smart Irrigation: Smart irrigation solutions using IoT sensors and cloud platforms are gaining traction to optimize water use. These systems track soil moisture and weather forecasts to automate irrigation cycles, conserving water and improving plant health. With agriculture consuming over 80% of the Kingdom’s freshwater, this trend is vital to water sustainability. Government incentives for tech adoption are accelerating deployments in wheat and date farming areas, helping reduce environmental stress and input costs.
• Satellite-Assisted Crop Management: Remote sensing using satellite imagery and drones is increasingly being adopted for monitoring crop performance and land use. These technologies help detect nutrient deficiencies, pest outbreaks, and water stress early. Saudi Arabia is partnering with regional space programs to integrate this data with national agriculture databases. This trend enhances planning accuracy, reduces input wastage, and supports precision agriculture across geographically dispersed farming areas.
• AI-Based Climate Risk Forecasting: With frequent temperature extremes and unpredictable rainfall, AI-powered platforms are being developed to model and forecast climate risks. These systems guide farmers on optimal sowing, harvesting, and irrigation schedules. The Saudi Agricultural and Livestock Investment Company (SALIC) is piloting such platforms in grain and fodder operations. The trend enhances adaptive capacity in farming operations and ensures proactive resource use in fragile desert ecosystems.
• Blockchain in Agri-Commodity Authentication: Blockchain is being used to validate the authenticity of domestically grown and imported agri-products. With rising demand for organic and halal-certified food, transparent digital tracking across the supply chain builds trust. This trend supports high-value exports and traceability in food logistics. It’s being explored in date exports, dairy supply chains, and organic produce for international and local markets, aligning with Saudi Arabia’s quality control and trade goals.
Saudi Arabia’s digital agriculture market is evolving through innovations in controlled farming, AI forecasting, water-saving technologies, and supply chain digitization. These trends reflect a strategic response to environmental constraints and align with national food security objectives. As Saudi Arabia leverages technology to boost productivity and resilience, digital agriculture is becoming a cornerstone in building a sustainable, high-tech future for the Kingdom’s agrifood system.
Recent Developments in the Digital Agriculture Market in Saudi Arabia
Digital agriculture in Saudi Arabia is advancing rapidly through public-private partnerships, investment in agri-tech infrastructure, and government-backed digital strategies. As part of Vision 2030, the nation is integrating smart technologies into agriculture to maximize output while reducing water and labor demands. Key developments include AI pilot programs, farm automation systems, and the digitization of supply chains. These efforts signal a long-term transformation of Saudi Arabia‘s agriculture ecosystem into a tech-enabled and sustainable industry.
• Launch of the National Agriculture Platform: The Ministry of Environment, Water, and Agriculture launched a national digital platform to centralize data on crops, livestock, and farming practices. It enables real-time data sharing, policy planning, and tech adoption tracking. This development improves coordination across ministries and stakeholders, enhances transparency, and supports farmers with digital access to subsidies, training, and crop planning tools.
• NEOM Food Innovation Hub Initiatives: As part of the futuristic NEOM project, a dedicated agri-tech innovation hub has been initiated. It focuses on AI-driven vertical farming, robotics, and gene-editing trials. These pilot farms act as innovation labs for scaling sustainable solutions across the Kingdom. The project is drawing global agri-tech players, turning Saudi Arabia into a regional digital agriculture center.
• Expansion of Agri-Tech Startups Through Investment Funds: Saudi venture capital and government-backed funds have increased investment in agri-tech startups developing smart irrigation kits, drone services, and AI farm analytics. Programs under Monsha’at and King Abdullah University of Science and Technology (KAUST) are mentoring these startups. This development supports innovation at the grassroots and drives job creation while improving farm productivity.
• Partnerships with Global Tech Providers: Saudi Arabia has signed strategic MoUs with international tech firms to bring precision agriculture tools to its farming community. Collaborations with companies in Europe and Asia are helping deploy cloud-based monitoring, automated harvesting systems, and agronomic sensors. These partnerships are bridging capability gaps and accelerating deployment timelines for digital transformation in rural regions.
• Digitization of Crop Insurance Systems: To mitigate risks in farming, Saudi Arabia is rolling out AI-supported crop insurance models. Digital platforms assess risk using satellite and field data and issue faster claims. This improves farmer confidence and encourages innovation in planting decisions. It also reduces dependency on manual field verification and enables more transparent and efficient support mechanisms.
Recent developments in Saudi Arabia’s digital agriculture landscape are reshaping farming from traditional to technologically advanced practices. Through government-driven platforms, startup investments, and smart infrastructure, the Kingdom is positioning itself as a leading innovator in arid-region agriculture. These digital initiatives are fostering efficiency, resilience, and global competitiveness in its food production system.
Strategic Growth Opportunities for Digital Agriculture Market in Saudi Arabia
Saudi Arabia is rapidly adopting digital agriculture to address water scarcity, food security, and labor shortages. Ambitious initiatives under Vision 2030 aim to modernize farming using automation, controlled-environment systems, and data-driven tools. Investments in IoT, AI, and remote sensing are supporting efficient resource use and crop productivity in harsh environments. Digital solutions are being designed for hydroponics, date palms, vegetables, and livestock. These tailored applications present high-growth opportunities for agritech providers aligned with national sustainability, food self-sufficiency, and export strategies.
• Smart Hydroponic and Controlled‑Environment Systems: Hydroponic farms using sensors, climate control, and LED lighting are scaling in greenhouses and vertical farms. These systems optimize water and nutrient delivery, enabling year‑round production of vegetables and leafy greens with minimal land and resource use. Data-driven climate systems reduce labor needs and ensure high crop consistency. Companies providing turnkey hydroponic packages and remote monitoring platforms are meeting demand from both investors and commercial growers. This supports food security goals and advances sustainability under extreme climate conditions.
• Automated Irrigation and Soil Sensing: Automated irrigation systems using soil moisture sensors, weather data, and remote control reduce water usage by up to 50%. In date palm groves and field crops, these systems conserve scarce water while supporting optimal growth. Solar-powered kits and mobile dashboards improve accessibility in remote locations. Providers that integrate regional climate models and support local languages are expanding adoption. Precision irrigation is becoming essential as Saudi Arabia shifts toward more sustainable farming practices under national environmental mandates.
• Drone-Based Field Management and Crop Monitoring: Drones are increasingly used to survey farms, apply crop protection substances, and map field health. In large farms and remote regions, drones enable rapid identification of stress, nutrient deficiency, or pest infestation. This automation reduces reliance on manual labor and improves yield predictions. Service providers offering localized drone services and analytics support are gaining traction. This application supports efficient large‑scale operations and aligns with mechanization goals under Vision 2030.
• Livestock Monitoring and Automated Feed Systems: Livestock operations are adopting wearable sensors and IoT-enabled feed dispensers to monitor animal health, reproduction, and feed efficiency. Remote monitoring and alert systems help detect disease early and optimize nutrition. These tools reduce veterinary costs and improve productivity, particularly in camel and cattle farming. Suppliers combining analytics dashboards and veterinary integration are expanding in pastoral zones. Such systems support biosecurity protocols and reduce labor dependencies in remote livestock facilities.
• Digital Traceability and Agri‑Fintech Platforms: Traceability tools using blockchain and QR codes are being used for produce, livestock products, and export commodities like dates. These platforms document quality, origin, and processing information, helping access premium export markets. Agri-fintech integration enables farmers to secure loans and insurance based on farm data. Digital marketplaces linking producers to retailers and logistics firms are shortening supply chains. Providers offering end-to-end traceability and financial services are well-positioned as the market pivots toward food safety and export readiness.
Digital agriculture in Saudi Arabia is gaining momentum through controlled-environment farming, irrigation automation, drone services, livestock monitoring, and traceability platforms. These applications are strengthening resource efficiency, food production, and export capacity. With strong alignment to Vision 2030 and sustainability goals, agritech providers offering integrated, localized solutions stand to benefit from rapid sector growth across Saudi farming systems.
Digital Agriculture Market in Saudi Arabia Driver and Challenges
Saudi Arabia’s digital agriculture market is shaped by strategic priorities, environmental constraints, technological readiness, and economic diversification. Key drivers include Vision 2030 targets, government-led pilot schemes, private investment, and rising consumer standards. Connectivity expansion and climate resilience efforts are further enhancing interest in agri-tech. However, implementation challenges exist, including high capital requirements, low farm-level digital literacy, and regulatory complexity, especially around water rights and data sharing. Addressing these dynamics is crucial to ensuring impactful adoption and sustainable modernization of Saudi agriculture.
The factors responsible for driving the digital agriculture market in Saudi Arabia include:
• Vision 2030 and National Modernization Goals: Vision 2030 aims to reduce food imports, enhance sustainability, and diversify the economy through high-tech agriculture. Government strategies fund agri-tech innovations, setup digital farming zones, and incentivize private sector participation. These policies create demand frameworks for digital solutions like precision irrigation and greenhouse automation. Companies aligning with national innovation goals and sustainability mandates gain pilots, subsidies, and market access. This supportive environment positions digital tools as key enablers of Saudi agricultural transformation.
• Severe Water Scarcity and Environmental Pressures: Extreme arid climate and limited freshwater resources have made water-saving technologies essential. Digital irrigation systems, soil sensors, and remote field management offer pathways to reduce consumption and meet conservation targets. Environmental policies tie agricultural expansion to water efficiency, creating demand for digital solutions. Custom-developed products that integrate regional climate modeling and real-time monitoring are preferred, supporting sustainable intensification even in desert farming environments.
• Rise in Private Agri-Tech Investment: Increased interest from investors, tech funds, and global partnerships is fueling agri-tech solutions in Saudi Arabia. Startups offering drones, sensors, and data analytics are receiving funding and expanding operations. Partnerships with international agri-tech firms are bringing expertise and infrastructure. This investment ecosystem drives product innovation, local adaptation, and market entry, creating a virtuous cycle of solution development and farmer adoption.
• Expansion of Rural Connectivity and Infrastructure: Expansion of 5G networks, improved power grids, and digital infrastructure in agricultural zones support real-time data gathering and remote operations. Connectivity enables IoT ecosystems to function effectively in greenhouses and expansive farms. With telecom operators partnering on pilot farming programs, reliable internet access is becoming a critical enabler for digital adoption across regions.
• Consumer Demand for Quality and Export Standards: Rising domestic and international expectations for food safety and traceability are driving digital adoption. Export crops and animal products must meet global standards for certification and origin tracking. Traceability systems and quality-monitoring platforms help open premium markets. Companies offering blockchain-enabled and certifiable solutions aligned with international standards are well-placed to support Saudi producers in global trade.
Challenges in the digital agriculture market in Saudi Arabia are:
• High Capital Expenditure: Many digital systems require heavy upfront investments in hardware, software, and infrastructure. Small-scale farms may find implementation costs prohibitive, even with subsidies. Leasing, rental models, and cooperative purchasing schemes can improve accessibility. Without innovative financing, adoption among smaller producers may remain limited.
• Digital Literacy Gaps: Many rural farmers and operators lack experience with digital tools or data interpretation. This limits effective use and long-term adoption of agri-tech. Training programs, extension services, and user-friendly designs are essential to build trust and capacity. Scaling digital uptake requires both tech deployment and human capacity building.
• Regulatory Complexity: Water rights regulation, data privacy concerns, and food export certifications introduce compliance burdens. Farms must navigate multiple licensing steps for water use, pesticide applications, and traceability. Simplifying regulatory processes and offering clear compliance tools will help reduce friction and speed up the adoption of digital systems.
Saudi Arabia’s digital agriculture is propelled by strategic vision, resource pressures, technology investment, and export objectives. Challenges like capital costs, digital literacy, and regulatory complexity must be addressed for equitable adoption. Providers offering modular, finance-friendly, and user-supportive models aligned with national policy will drive widespread impact. A coordinated approach integrating technology, training, and governance will enable sustainable modernization of Saudi agriculture.
List of Digital Agriculture Market in Saudi Arabia Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, digital agriculture companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the digital agriculture companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Digital Agriculture Market in Saudi Arabia by Segment
The study includes a forecast for the digital agriculture market in Saudi Arabia by type, operation, offering, and technology.
Digital Agriculture Market in Saudi Arabia by Type [Analysis by Value from 2019 to 2031]:
• Hardware
• Software
• Service
Digital Agriculture Market in Saudi Arabia by Operation [Analysis by Value from 2019 to 2031]:
• Farming & Feeding
• Monitoring & Scouting
• Marketing & Demand Generation
Digital Agriculture Market in Saudi Arabia by Offering [Analysis by Value from 2019 to 2031]:
• Advisory Services
• Precision Agriculture & Farm Management
• Quality Management & Traceability
• Digital Procurement
• Agri E-commerce
• Financial Services
Digital Agriculture Market in Saudi Arabia by Technology [Analysis by Value from 2019 to 2031]:
• Peripheral Technologies
• Core Technologies
Features of the Digital Agriculture Market in Saudi Arabia
Market Size Estimates: Digital agriculture in Saudi Arabia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Digital agriculture in Saudi Arabia market size by type, operation, offering, and technology in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different type, operation, offering, and technology for the digital agriculture in Saudi Arabia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the digital agriculture in Saudi Arabia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the digital agriculture market in Saudi Arabia?
Answer: The major drivers for this market are the increasing awareness of digital agriculture and helping to increase adoption is a strategic government policy, advances in technology, minimising waste and efficient use of resources, and the reducing wastage and efficient use of resources.
Q2. What are the major segments for digital agriculture market in Saudi Arabia?
Answer: The future of the digital agriculture market in Saudi Arabia looks promising with opportunities in the advisory service, precision agriculture & farm management, quality management & traceability, digital procurement, agri e-commerce, and financial service markets.
Q3. Which digital agriculture market segment in Saudi Arabia will be the largest in future?
Answer: Lucintel forecasts that, with in the operation category, monitoring & scouting is expected to witness the highest growth over the forecast period due to farmers and other stakeholders can remotely record any disruption in farm work through scouting and monitoring.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the digital agriculture market in Saudi Arabia by type (hardware, software, and service), operation (farming & feeding, monitoring & scouting, and marketing & demand generation), offering (advisory services, precision agriculture & farm management, quality management & traceability, digital procurement, agri e-commerce, and financial services), and technology (peripheral technologies and core technologies)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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