Saudi Arabia Power Market Overview
Market Size in 2024: 81.7 GW
Market Forecast in 2033: 104.4 GW
Market Growth Rate 2025-2033: 2.76%
According to IMARC Group's latest research publication, "Saudi Arabia Power Market Size, Share, Trends and Forecast by Generation Source, and Region, 2025-2033", The Saudi Arabia power market size was valued at 81.7 GW in 2024. Looking forward, IMARC Group estimates the market to reach 104.4 GW by 2025-2033, exhibiting a CAGR of 2.76% from 2025-2033.
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How AI is Reshaping the Future of Saudi Arabia Power Market
AI-powered analytics optimize electricity demand forecasting, reducing waste and ensuring stable power supply across Saudi Arabia’s expanding grid infrastructure.
Smart grids with AI improve fault detection and self-healing capabilities, minimizing outages and enhancing power reliability for millions of users.
Government-backed AI initiatives enable predictive maintenance, cutting operational costs and extending the lifespan of power generation and transmission equipment.
AI-driven energy management systems boost renewable integration by efficiently balancing intermittent solar and wind power with traditional sources.
Saudi utilities deploy AI chatbots and automated customer service platforms, enhancing consumer engagement and providing real-time support for power users.
Saudi Arabia Power Market Trends & Drivers:
Saudi Arabia’s power market is rapidly evolving driven by robust population growth and industrial expansion, pushing up electricity demand significantly. The country’s population, exceeding 36 million and urbanizing quickly, requires more reliable power supply for residential, commercial, and industrial needs. This growing demand is fueling investments in both traditional and renewable power generation. Key cities like Riyadh and Jeddah are witnessing rapid infrastructure upgrades to support industrial zones and smart city projects, ensuring power availability matches growth. The government’s focus on energy security and diversification further fuels infrastructure spending to keep pace with expanding consumption.
The aggressive push toward renewable energy is a dominant growth factor shaping Saudi Arabia power market trends. The government aims to generate half of its electricity from renewables, notably solar and wind, supported by large-scale projects totaling several gigawatts. Recent contracts for 4.5 gigawatts of solar capacity and expansions in wind farms highlight accelerated deployment. Collaborations with Chinese firms enhance local manufacturing and supply chain efficiencies, lowering costs and speeding rollouts. Integrating renewables aligns with environmental goals and reduces dependence on oil, positioning Saudi Arabia as a clean energy leader in the Middle East.
Technological modernization of the power grid is another key trend supporting market growth. Saudi Electricity Company (SEC) leads a $126 billion initiative to expand and digitize transmission and distribution networks, including the rollout of 12 million smart meters. Smart grid technologies enable better load management, reduce energy losses, and prepare the system for more renewable integration. Battery energy storage projects totaling over 22 gigawatt-hours, including a 500 MW pilot in Bisha, enhance grid stability and efficiency. This modernization boosts reliability, lowers costs, and supports the Kingdom’s Vision 2030 ambition of an advanced, sustainable energy ecosystem.
Saudi Arabia Power Industry Segmentation:
The report has segmented the market into the following categories:
Analysis by Generation Source:
Thermal
Hydro
Renewable
Others
Regional Insights:
Northern and Central Region
Western Region
Eastern Region
Southern Region
Competitive Landscape:
Saudi Electricity Company (SEC)
National Grid SA
Acwa Power
Kepco
SPPC
Recent News and Developments in Saudi Arabia Power Market
2025 August: Saudi Electricity Company announces major grid modernization program with AI-powered smart grid technologies, aimed at improving system reliability and enabling higher renewable energy integration across the national power network.
2025 July: NEOM announces breakthrough in renewable energy storage with the world's largest green hydrogen production facility, positioning Saudi Arabia as a global leader in clean energy export capabilities.
2025 June: Vision 2030 renewable energy initiatives accelerate with new solar and wind power projects totaling 5 GW capacity, supported by international partnerships and advanced energy storage systems for grid stability.
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