Market Scenario
Saudi Arabia test and measurement equipment market was valued at US$ 383.37 million in 2023 and is projected to hit the market valuation of US$ 618.73 million by 2032, at a CAGR of 5.80% during the forecast period 2024–2032.
The test and measurement equipment market is benefitting from Saudi Arabia’s flourishing economy as well as its transformative Vision 2030 programs that have been known to be puzzling. The increasing job industry in the region, particularly through healthcare, tourism, IT, engineering and education fuels the demand for sophisticated instruments to ensure quality and performance. This drive is further heightened by the need created by Vision 2030’s focus on economic diversification; development of public services sector; as well as giant giga projects like NEOM among others. For instance, some specific initiatives set out by vision include localization of defense industries which was at a lowly 2% in 2018 but is expected to rise up to 50% by 2030 thereby indicating an exponential increase in technological and manufacturing requirements.
Moreover, this boom in the test and measurement equipment market can also be seen in terms of technology and manufacturing sectors within Saudi Arabia where they are experiencing unprecedented growth rates according to many experts though it may sound paradoxical due to bursty language use. Over recent years this country has emerged as MENA’s largest ever tech market with software engineers being sought after more than any other profession followed closely behind cloud engineers etc. It should also be noted that National Industrial Development Logistics Program (NIDLP) seeks nothing short of cementing KSA as an industrial powerhouse hence targeting creation one million six hundred thousand jobs plus attracting USD 453 Billion worth investments by year 2030 alone thus making sure there is no shortage when it comes down to needing test-and- measurement-equipment for these sectors.
Additionally, such emphasis on quality assurance or compliance would require utilization advanced testing facilities. This can be illustrated using regulations like SFDA’s traceability mandate where businesses must adhere strictly with certain standards so that products do not go bad easily or fail consumers expectations. Such a focus can enhance adoption rates for process improvement tools leading wider markets for T&M equipment. Furthermore, another area fueling growth is the expansion of healthcare and education systems under Vision 2030. For instance, the country plans to raise private health care spending up by 35% come 2030 which will see many new hospitals being built both locally and internationally besides other medical facilities. While in education sector, there are high chances that more investments shall be made. Thus, necessitating use different testing instruments following increased demand for quality improvement efforts even if they seem hard to understand at first glance in the test and measurement equipment market.
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Market Dynamics
Driver: Rapid Growth in Key End-User Industries
Demand for test and measurement equipment market in Saudi Arabia has risen, thanks to the rapid growth of many important end-user industries. When the government invests in new hospitals and clinics so as to expand healthcare, this leads directly to medical testing equipment. Abdulla Fouad Medical Supplies & Services (AFMS) and MediServ are among the companies that provide these supplies throughout the country’s health industry. Additionally, there are extensive infrastructure undertakings such as new cities, railways, airports and industrial zones which must test construction materials carefully. The $500 billion NEOM smart city project alone demonstrates how much concrete, steel and other building materials need testing in Saudi Arabia.
Moreover, economic diversification efforts by governments have spurred on manufacturing sectors with strongholds in automotive production; aerospace technologies as well electronics assembly lines being set up across different regions within the same country or worldwide where it is necessary for them all to meet international standards through rigorous tests before they can be introduced into those markets nationally or internationally but sometimes only regionally because some countries may lack capacity towards carrying out such tasks due either limited finances/technical know-how. Furthermore, the manufacturing sector in the test and measurement equipment market is being boosted by the government’s economic diversification drive especially in areas such as automotive, aerospace and electronics.
Apart from this, stringent testing and certification requirements in these industries further fuel demand for sophisticated test & measurement equipment. This can be seen from the expected CAGR of 7.7% of Saudi Arabia’s Automotive market up to 2026 which shows an increasing need for such devices within this space. Finally, utilities are investing heavily on power infrastructure to cope with about 6% yearly increase of national electricity consumption so far met by CEPCO Sales being authorized Megger distributor in Saudi Arabian Kingdom among others
Trend: Rapid Adoption of Advanced Technologies
The use of more and more advanced technology such as 5G, IoT, and driverless vehicles is on the rise in Saudi Arabia test and measurement equipment market. Consequently, demand for test and measurement equipment that guarantees performance and safety of these technologies has gone up. Saudi Arabia is utilizing state-of-the-art technology in several sectors as it aims for digitalization. For example, AI alone is expected to contribute $135.2 billion to the Saudi economy by 2030. This change can be seen clearly in manufacturing oil & gas; here AI solutions are being used for equipment lifetime analytics, asset tracking among others like satellite/aerial image analytics.
Another indication of the country’s effort towards going digital is ICT market which is projected to hit USD 50.60 billion by 2024. Energy and utility industries have embraced advanced digital technologies so as to improve operational efficiency while meeting sustainability goals at the same time. The use of sophisticated monitoring systems along with control technologies has also become common in various sectors like oil refineries among others like foundries cement plants power generation petrochemical development etcetera metals. The government’s efforts to enhance medical care infrastructure have necessitated the adoption of digital health technologies such as electronic healthcare records and telemedicine within the healthcare sector.
Electronics products are currently experiencing a high demand level hence leading to a boom in Test and Measurement Equipment Market; this can be attributed by increasing investments on research & development coupled with advancements made in communication & networking systems too. The mobile device manufacturers together with telecom service providers as well network equipment manufacturers among others are expected to further accelerate growth through adopting testing procedures alongside measuring solutions.
Challenge: Localization Requirements and Increasing Competition from Domestic Suppliers
To promote localization of manufacturing and sourcing, the Saudi Arabian government has put in place policies like the In-Kingdom Total Value Added (IKTVA) program by Saudi Aramco. As per IKTVA, it is required that not less than 70% of goods and services within the energy sector should be purchased from local suppliers. This move towards localization is making it harder for foreign manufacturers in the test and measurement equipment market to thrive in Saudi Arabia. They feel compelled to either open local manufacturing plants, form partnerships with Saudi firms or increase domestic content in their products to meet IKTVA targets.
Moreover, this drive towards localization is also giving rise to competition from within the testing industry itself since now there are more local competitors who have emerged as a result of it growing on their own capabilities. One such company would be Saudi Dutest Industrial Company which was established back in 2011 as an offshoot of UAE based Dutest for lifting gear production together with providing testing services for clientele within its locality thus making things even tougher for external suppliers due to better equipped rivals being present.
Segmental Analysis
By product Type
Voltmeter segment holds highest share of 16.3% in 2023 and is projected to grow with the highest CAGR of 6.11% during the forecast period in the Saudi Arabia test and measurement equipment market.
Saudi Arabia's heavy investment in industrial development, particularly in sectors like oil and gas, petrochemicals, and manufacturing, has spurred the demand for voltmeters as indispensable tools for testing electrical circuits and equipment in these industries. Also, the country’s focus on construction works up to power plants or transportation is only possible through the use of voltmeters for electrical system testing and maintenance too. The sector has witnessed a rising demand for voltmeter due to the increased concern about solar energy or wind power which are renewable sources of electricity that require continuous monitoring systems.
The adoption of volt meters in different sectors of the test and measurement equipment market has been boosted by technological advancement which has made them more accurate, efficient and versatile. A lot also needs to be done with regard to setting regulations as well as standards that make it mandatory for people operating within various industries to test their electrical systems frequently beside monitoring them; this alone greatly increases demand for volt meters hence making their prices go higher than before. Besides this, general growth in economy across Saudi Arabia acts stimulus towards investment into technology plus infrastructure thereby indirectly leading test and measurement equipment such as volts meter. Moreover; safety consciousness together with educational campaigns aimed at promoting usage of right tools during testing periods have played significant roles towards creating strong foundation upon which volt meter market can grow robustly within the nation while increasing efficiency awareness for testing electrical systems so as to safeguard lives and property
By Application
The pressure measurement segment held the highest share of 14.4% in Saudi Arabia's test and measurement equipment market in 2023, driven by various key factors. Being a worldwide leader in the oil and gas sector, this country relies heavily on pressure measurement for key processes like extraction, refining, and transportation. This creates a huge demand for accurate pressure measuring technologies. Additionally, significant investments made in the petrochemical industry coupled with ongoing industrial expansion programs such as Vision 2030 necessitate correct pressure measurements throughout manufacturing, construction, and utilities sectors.
Furthermore, infrastructure projects such as power plants or desalination plants require efficient process monitoring and control systems which increase the need for pressure measurement solutions even more. Moreover, it should not be forgotten that without proper water management including treatment facilities there would be no sustainable development in any region let alone Saudi Arabia where most resources are limited by technology level hence making technological advancement one among other things that drives market growth together with strict government regulations while sustainability initiatives could also fuel urbanization rates besides R&D investments expected from collaboration between international partners aimed at improving living standards globally. Examples which show just how widely used the pressure measurement technology is include its incorporation into Saudi Aramco’s oil operations; SABIC’s manufacturing processes; Ras Al-Khair Desalination Plant located near Jubail Industrial City; as well as various industrial operations within Jubail Industrial City itself thereby underscoring significance of this device across different sectors within Saudi Arabian economy.
The opposite will happen with the calibration instrument segment in Saudi Arabia’s test and measurement equipment market that will have an impressive CAGR of 6% during forecast period ending mainly due to high demand levels associated with accurate measurement devices because every industry needs precise and reliable instruments for smooth running of their activities but also compliance issues may arise if businesses don’t meet required measurements hence leading to quality decline or even total closure as per set standards by regulatory bodies internationally recognized too.
By Industry Vertical
The energy and power segment holds highest share of 24.1% in the test and measurement equipment market and is projected to keep growing at the highest CAGR of 6.17% during the forecast period.
Mainly, it’s Saudi Arabia’s need for energy that is growing so fast; it is being propelled by economic development, a rising population and subsidized power at home. This has established the country as the leading consumer of test and measurement devices. Current data demonstrates this inclination when the overall energy consumption rose by 2.5% up to 228 million tonnes oil equivalent (Mtoe) in 2022 and each person used 9,102 kWh of electricity every year on average. For this reason, the government makes significant investments into its energy industry where about 9% GDP goes towards subsidies in order to keep prices affordable.
Another thing that complicates things is that most of Saudi Arabia’s power supply comes from oil and gas which means they have no choice but to use advanced measurement systems in their operations. In fact, petroleum accounts for roughly forty four percent (44%) while natural gas takes fifty six percent (56%) of primary energy consumption in Saudi Arabia’s test and measurement equipment market. Advanced equipment is relied upon heavily by major players such as Saudi Aramco which happens to be world largest producer company for crude oil because it helps them maintain safety standards during exploration refining among other processes as well ensuring efficiency in the test and measurement equipment market.
Additionally, under Vision 2030 the government has set renewable targets alongside increasing natural gas production thus creating more demand for test-measurement-equipment within this space too. A good example would be NEOM smart city project which requires scrutiny throughout its development stages until performance reliability are met besides aligning with environmental requirements; also initiatives like Saudi Green Initiative whose aim is to have half of all electricity generated come from renewables by next decade will need rigorous testing against various standards during implementation phase given these goals’ ambitious nature vis-à-vis their expected timelines achievement potential with regard sustainable power sources availability across Kingdom over same period etcetera — so there can never be enough measurements done here.
By Distribution Channel
In Saudi Arabia test and measurement equipment market, offline distribution sector is leading with over 84.3% of the market share. Several factors allowed this dominance which are deeply ingrained in Saudi business culture. They prefer direct contact thus face-to-face interactions are very important to them as they build personal relations and trust before buying high value goods; this was supported by a finding that 70% of B2B purchasers in Saudi Arabia would rather have sales person meet them physically. Offline distributors who have established themselves locally can always take advantage of such situation because it is easier for them than online channels.
Apart from this, the after-sales support services plus training facilities availability is adding fuel to the segment’s dominance. Calibration installation maintenance and user training are some of what may be needed for use with test & measurement equipment especially those bought in large quantities or for heavy duty work like industrial testing machines used by factories making various products; this was proved when more than 80 % of industrial firms said responsive local support was among their top considerations during equipment selection. Most suppliers from virtual stores find it hard offering real demonstrations on how these gadgets should be operated since they do not have physical offices where technicians could go show people what needs to be done so Arabic training materials becomes useless instead.
In addition, flexible payment terms also play an important role towards success experienced within the offline segment of the test and measurement equipment market in Saudi Arabia. The fact that people want different payment options shows why this area has thrived; most small medium enterprises (SMEs) owners who buy such items demand suppliers provide easy ways through which money can be paid without disrupting cash flows hence Saudi Arabian customers need a lot from them including financial help since many lack access to formal credit channels while evaluating risks faced by borrowers only individuals living near potential clients know better about their repayment abilities therefore if one falls under bad debt category due to inability pay back loan issued then others within same neighborhood might also struggle settling debts incurred earlier resulting into no supplier offering any type of finance as revealed after surveying over 60% of SMEs in KSA who cited lack supplier financing being major barrier towards acquiring equipment necessary for smooth business operations.
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Key Players in Saudi Arabia Test and Measurement Equipment Market
Recent Developments in Saudi Arabia Test and Measurement Equipment Market
Market Segmentation Overview:
By Product Type
By Application
By Industry Vertical
By Distribution Channel
By Sales Channel
| Report Attribute | Details |
|---|---|
| Market Size Value in 2023 | US$ 383.37 Mn |
| Expected Revenue in 2032 | US$ 618.73 Mn |
| Historic Data | 2019-2022 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Unit | Value (USD Mn) |
| CAGR | 5.80% |
| Segments covered | By Product Type, By Application, By Industry Vertical, By Distribution Channel, By Sales Channel |
| Key Companies | AMETEK Inc., Anritsu Corporation, EXFO Inc., Fluke Corporation, Fortive, Keysight Technologies, Inc., Leader Electronics Corporation, National Instruments Corporation, Rohde & Schwarz, Tektronix, Inc., Teledyne Technologies, VIAVI Solutions Inc., Yokogawa Electric Corporation, Other Prominent Players |
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