Saudi Arabia ISO Certification Market Growth & Trends [2031]

Report Description

Market Outlook:

The Saudi Arabia ISO Certification Market was valued at USD 24,317.1 Thousands in 2022 and is projected to reach USD 100,095.6 Thousands by 2031, expanding at a CAGR of 17.7% during the forecast period.

The Saudi Arabia ISO Certification market volume is estimated at 5,113 units in 2022 and is projected to reach 12,707 units in 2031 and is expected to grow at a CAGR of 11.0% by the year 2031.

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ISO Certifications are globally recognized standards that define criteria for various management systems, processes, and practices across various industries and sectors. These certification bodies play a crucial role in determining whether an organization meets the requirements of a particular ISO standard and granting certification accordingly. ISO certification is widely recognized around the world, making it easy for companies in Saudi Arabia to expand into international markets. Furthermore, ISO standards improve product quality, thus improving customer retention. Organizations are able to streamline operations, reduce waste, improve productivity, and enhance overall efficiency by implementing the requirements of the standard.

Macro-Economic Factors

Economic Growth

Economic growth plays a significant role in influencing the demand for ISO certification services during the period of economic expansion, as businesses invest in improvising their process, quality standards, and sustainability practices. This leads to increased demand for ISO certification to demonstrate compliance and enhance competitiveness.

The economy of Saudi Arabia is the largest in the Middle East as compared to others and the eighteenth largest across the globe. The economy of Saudi Arabia is heavily dependent on the petroleum sector. In recent years, oil sector has contributed 40% to the GDP of Saudi Arabia, with substantial fluctuations dependent on oil prices each year. The economic growth of Saudi Arabia influences the ISO certification market. The economy of Saudi Arabia is rapidly increasing due to the development of various industries.

• For instance, ISO 22000 has a substantial impact on different industries in Saudi Arabia, including food processing, agriculture, hospitality, retail, and exports, which profit from this certification. It enables rigid food safety regulations, which improve reputation, customer confidence, and economic growth.

Globalization & Trade

The rapid growth in international trade and globalization has increased the need for a standardized quality and environmental management system in Saudi Arabia. ISO certification enhances the credibility and reputation of Saudi Arabia-based businesses across the globe. It guarantees international partners and customers that the company is committed to quality management standards, allowing international trade and relationships. Trade agreements and regional integration initiatives have a significant impact on the ISO certification market, particularly for organizations that are involved in international trade. These agreements often include provisions related to compliance with international standards, prompting businesses to obtain ISO certifications to facilitate trade and meet market requirements.

Government Regulations

The ISO certification market in Saudi Arabia is not directly regulated by the government, as ISO standards are voluntary guidelines. However, several government bodies and initiatives play an important role in influencing the adoption of ISO standards in Saudi Arabia. Government of Saudi Arabia and regulatory bodies establish and enforce regulations to protect consumer safety, ensure product quality, and meet environmental standards.

One of the important government bodies, called the Saudi Standards, Metrology and Quality Organization (SASO), plays a key role in accrediting certification bodies and aligning national standards with ISO standards. A SASO certificate is a certification used in Saudi Arabia to ensure that imported goods have been properly inspected and tested to meet safety and quality standards.

Market Dynamics

Market Driver - Government Regulations, Standards, and Initiatives

Government of Saudi Arabia has implemented various policies to promote quality and excellence in various sectors. For instance, the Saudi Standards, Metrology and Quality Organization (SASO) is the national authority for standardization, conformity assessment, and quality. Furthermore, the Saudi Arabia government has implemented various standards across different industries to ensure quality, safety, and environmental sustainability. These regulations often require companies to obtain ISO certifications to demonstrate compliance. Certain industries in Saudi Arabia, such as oil & gas, construction, and healthcare, have stringent quality requirements. ISO certification is often a prerequisite for participation in these sectors, driving demand for the market.

• For instance, oil & gas companies in Saudi Arabia are required to comply with ISO 9001 for quality management and ISO 14001 for environmental management. Failure to comply with these standards results in penalties or loss of contract with government-owned oil companies such as Saudi Aramco.

Market Driver - Increasing Customer Demand for Product Differentiation and Customer Loyalty

Increasing customer demand for product differentiation and customer loyalty is a significant driver for the ISO certification market. Customers have many choices and expectations when it comes to the quality and safety of the products or services they use. They also want to support businesses that are socially and environmentally responsible. Therefore, customers tend to prefer businesses that have ISO certification, as it demonstrates the commitment of these businesses to meeting these standards and expectations. Thus, companies are increasingly adopting ISO certifications to differentiate their products from competitors, thereby driving the growth of the market.

• For instance, ISO certifications, such as ISO 9001 for quality management systems, are a way for businesses to stand out from their competitors by showing their dedication to consistent quality and customer satisfaction. For instance, an electronic manufacturer with ISO 9001 certification guarantees customers that its products are reliable and excellent, which boost loyalty and attract new customers.

Market Driver - Growing Emphasis on Quality Management and Standardization Among Various Industries

Saudi Arabia is a growing business hub of the Middle East. Recent business reforms of the country have spurred the growth of start-ups, which in turn drive the demand for the ISO certification market. Moreover, big firms are establishing their presence in the area, which further boost the demand for ISO certifications. ISO certification is an essential component for every industry to demonstrate their ability to produce quality products and services. When a company earns ISO certification, it pledges to follow a set of globally accepted quality management standards. Quality management and standardization are important for organizations to achieve operational excellence, reduce costs, increase efficiency, and foster innovation. The ISO Certification Standard empowers companies to transform their existing operational structures. Furthermore, business procedures change to reflect the shift of the organization toward an increasingly quality-oriented and customer-centric approach. ISO certification help organizations in various industries such as IT, construction, manufacturing, and others to improve their performance, reduce risks, and increase customer satisfaction.

Market Restraint - Financial Constraints

One of the primary restraints for the Saudi Arabia ISO certification market is the financial burden associated with the certification process. Small businesses, in particular, find the costs of obtaining and maintaining ISO certifications prohibitive. High cost of ISO certification, including consulting fees, auditing expenses, lead auditor training fees, documentation costs, and system upgrades, presents a significant barrier to the growth of the ISO certification market in the country. These costs pose a significant financial burden for small businesses, especially in developing countries such as Saudi Arabia, where the certification fees are higher than the average income. Small businesses also lack the resources and expertise to implement and maintain the ISO standard requirements. Therefore, some small businesses are not be able to afford ISO certification or not see the return on investment.

Market Opportunity - Integration of Digital Transformation

Integration of digital technologies and data-driven approaches represents a significant opportunity for the Saudi Arabia ISO certification market by modernizing processes, enhancing efficiency, and promoting global competitiveness. Leveraging technologies such as blockchain for transparent supply chain traceability or artificial intelligence for data analytics enhance the effectiveness of ISO compliance. For instance, digital technologies automate complex, time-consuming processes involved in ISO certification, reducing human errors and increasing efficiency. Furthermore, AI and machine learning technologies predict trends and provide insights for continuous improvement in quality management systems aligned with ISO standards. AI and machine learning also automate and optimize the certification processes such as data collection, analysis, reporting, and decision making. These technologies also enhance the user experience and interaction with the certification services, such as providing personalized & customized content, feedback, and support.

Scope of the Report

The report on the Saudi Arabia ISO Certification Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Segmental Outlook

The Saudi Arabia ISO Certification Market is segmented on the basis of ISO Standard, industry, and enterprise size.

On the basis of ISO Standard, the ISO certification market is segmented into ISO 9001, ISO 14001, ISO 27001, ISO 22000, ISO 13485, ISO 50001, ISO 22301, ISO/IEC 27032, ISO 41001, ISO 45001, ISO 10001/2/3, ISO 28000, and others. The ISO 9001 segment is expected to hold a significant market share during the forecast period. The growth of this segment is attributed to the increasing focus on adopting a risk-based approach in quality management systems. Furthermore, organizations are placing emphasis on identifying as well as mitigating risks to improve overall performance and customer satisfaction. ISO 9001 provides a recognized framework for organizations to improve operational efficiency, enhance customer satisfaction, and deliver consistent & high-quality products and services.

Based on Industry, the Saudi Arabia ISO certification market is segmented into aerospace, chemical & fibers, construction, electrical & electronics, information technology, machinery & equipment, manufacturing, hospitality, oil & gas, retail, transportation & storage, and others. The aerospace segment is projected to expand at a significant CAGR during the forecast period. Airline traffic and airline growth are accelerating. Moreover, small aircraft, business jets, and helicopters are expected to register significant growth in demand for regional connectivity and fast mobility, as demand from businesses and other travelers rises with economic growth.

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Based on enterprise size, the Saudi Arabia ISO certification market is segmented into SMEs and large enterprises. The large enterprises segment is expected to hold a significant market share in 2022 and is projected to expand at a significant CAGR during the forecast period. Large enterprises are more competitive than small enterprises, as they have more resources. This further reflects the extensive requirements and complex structures of large organizations, which necessitate comprehensive ISO certifications that are capable of managing diverse needs.

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Key Companies Developments

• On February 2022, Applus+ announced that it has strengthened its position in Indonesia with ASME Certification. The team at Applus+ in Indonesia is authorized by the National Board of Boiler and Pressure Vessel Inspectors and the company is able to perform the ASME certification. It takes special care as an Authorized Inspection Agency to ensure its inspectors have a high level of technical competency. Its team assists clients with inspections requiring certification and actively supports the inspection process.

• On January 2023, Bureau Veritas has inaugurated its regional headquarters in Riyadh, Saudi Arabia. This marks more than three decades of the group’s presence in the Kingdom of Saudi Arabia, with a footprint of six offices and five laboratories across the kingdom.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Saudi Arabia ISO Certification Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Saudi Arabia ISO Certification Market