Saudi Vision 2030 Fuels Smart Home Growth In GCC

(MENAFN- GlobeNewsWire - Nasdaq) The Middle East smart home market presents opportunities driven by digital-government programs and smart-city projects. Elevated demand arises from advanced 5G and fiber rollouts, luxury real-estate integration, and a focus on security-driven solutions. High disposable incomes enhance premium market segments.

Dublin, Jan. 21, 2026 (GLOBE NEWSWIRE) -- The "Middle East Smart Home - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets's offering.

The Middle East smart home market, initially valued at USD 10.54 billion in 2025, is projected to expand to USD 29.73 billion by 2031, achieving a CAGR of 18.90% from 2026 to 2031. This growth is driven by digital-government programs, a premium consumer base, and robust smart-city initiatives. Saudi Vision 2030 and other Gulf Cooperation Council national agendas prioritize sustainable urban growth, providing vendors with a reliable outlook on residential automation. Enhanced telecommunications, including nation-wide fiber and 5G rollouts, eliminate bandwidth issues, supporting a comprehensive connected-device ecosystem. Additionally, high disposable incomes encourage premium pricing, while luxury real-estate projects increasingly offer turnkey automation packages as a selling point. Security-focused solutions remain in demand as households prioritize property protection, promoting surveillance and access-control solution adoption.

Middle East Smart Home Market Trends and Insights

Government Vision 2030 Smart-City Initiatives: National programs integrate smart-home elements into residential planning. Key projects like Saudi Arabia's NEOM and UAE's smart districts allocate budgets for advanced connectivity, IoT gateways, and management platforms, simplifying vendor market entry by standardizing device specifications and encouraging large-scale procurement. Sustainability goals within Vision 2030 frameworks promote energy-efficient designs, allowing automation to be seen as both luxury and compliance aids. These government-back projects bolster awareness, positioning the smart home market as a foundational aspect of regional digital economies.

Rapid Deployment of 5G and Fiber Infrastructure: With widespread fiber coverage and 5G deployment, network reach expands to areas previously under-served, facilitating multi-room surveillance and high-quality multimedia. Network slicing offers secure channels for critical devices, addressing reliability concerns. Enhanced connectivity shifts focus to software features, analytics, and user experience, further solidifying premium consumer demand.

Cybersecurity and Data-Privacy Concerns: Rising IoT-related breach reports increase consumer caution. Stricter data-protection laws in Saudi Arabia and UAE elevate vendor compliance costs. Consumers demand features like on-premises data storage and multi-factor authentication, making selling cycles longer but allowing companies with robust security offerings to potentially command higher market prices.

Other drivers and restraints include:

• High Electricity Tariffs Driving Energy-Management Adoption
• Real-Estate Developers Bundling Smart-Home Solutions
• Fragmented Technology Standards

Segment Analysis

Security systems represented 30.12% of the market in 2025, highlighting property protection as a top priority. Demand includes smart cameras, video doorbells, and biometric locks. Energy-management devices show a strong CAGR forecast of 20.75%, driven by tariff-influenced ROI and climate commitments. Control hubs evolve into AI-powered systems enhancing cross-selling. Entertainment packages benefit from high-definition streaming, but consumer focus remains on essential safety features.

A second growth area is wellness sensors monitoring air quality, integrated with HVAC systems in luxury villas, bolstering revenues. Matter framework advancements support interoperability, allowing multi-brand adoption. This creates a resilient product mix, safeguarding vendors against category-specific fluctuations and ensuring sustained market growth.

Wi-Fi supported 40.35% of the market share in 2025. Mesh extensions improve coverage, while the Thread protocol is expected to grow at 20.56% CAGR, supporting energy-efficient mesh networks. Dual-protocol firmware updates reduce consumer hesitancy. The combination of enhanced Wi-Fi and Thread devices positions the market for hybrid networking solutions.

The comprehensive Middle East Smart Home Market Report covers product, connectivity technology, residential type, sales channels, and includes market forecasts by value (USD).

List of companies covered in this report:

• Schneider Electric SE
• Honeywell International Inc.
• ABB Ltd.
• Johnson Controls International PLC
• Google LLC (Nest)
• Inc. (Ring LLC)
• Samsung Electronics Co. Ltd.
• Huawei Technologies Co. Ltd.
• Legrand SA
• Siemens AG
• LG Electronics Inc.
• Lutron Electronics Co. Inc.
• Bosch Security Systems GmbH
• Cisco Systems Inc.
• TP-Link Technologies Co. Ltd.
• Resideo Technologies Inc.
• Fibaro Group S.A.
• Aqara (Lumi United Technology Co. Ltd.)
• Dahua Technology Co. Ltd.
• Etisalat by e&

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