Saudi Arabia Power Market Size, Share Analysis, Trends & Forecast 2025-2033
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.
Growth Factors in the Saudi Arabia Power Market
- Massive Investments in Renewable Energy
Saudi Arabia’s power industry is being propelled by billions of dollars flowing directly into renewable projects. The government, through initiatives like the National Renewable Energy Program, has unleashed $8.3 billion in fresh capital to fund seven new solar and wind projects that will add 15,000MW of clean energy to the grid. The Public Investment Fund (PIF) has announced a staggering $50 billion allocation for renewables alone. These investments are supporting landmark ventures such as the 1,500MW Sudair Solar PV plant, while major companies like ACWA Power are leading the charge, managing 70% of the Kingdom’s renewable initiatives. With a strategic aim of achieving 50% of its power mix from clean sources, such large-scale funding is not just modernizing the grid, but is also fueling local manufacturing, creating jobs, and establishing Saudi Arabia as a regional hub for green energy.
- Urbanization and Industrial Growth Driving Electricity Demand
Saudi Arabia’s booming cities and expanding industries are key engines of rising power consumption. The country’s population has topped 32 million, with a remarkable 70% under age 40, resulting in a surging demand for energy at home and in businesses. Over 40% of the Kingdom’s electricity is now used by the industrial sector, while residential construction is thriving in a $97.8 billion building market. Massive urban development is reflected in projects like Riyadh’s 75 infrastructure upgrades and a sharp 7.6% hike in average residential rents. In response, authorities have inked deals for an additional 10.9GW of capacity, mixing gas and solar plants to serve more than 34.5 million power consumers. As megaprojects reshape the skyline and manufacturing accelerates, the push to extend, diversify, and strengthen the power grid has become an urgent national priority.
- Government Schemes and Pro-Business Policies
Vision 2030 and allied government schemes are directly shaping the power landscape. Robust support in the form of tenders, incentives, and streamlined licensing is pulling in a 44% increase in foreign direct investment, which stands at $5.9 billion. The Ministry of Energy is catalyzing collaboration through tax breaks and public-private partnerships, while progressive regulatory bodies oversee fair pricing and service quality. Notable milestones include the $3.57 billion expansion of the Qurayyah power plant and new energy storage and smart grid initiatives in 51 cities. Programs like the Regional Headquarters Program have also enticed over 600 global companies to establish a Saudi footprint, fostering world-class partnerships. These dynamic policies are delivering state-of-the-art projects, pushing operational efficiency, and making Saudi Arabia’s power market both vibrant and globally competitive.
Key Trends in the Saudi Arabia Power Market
- Rapid Diversification Toward Renewable Sources
Saudi Arabia is in the midst of a dramatic shift from conventional oil-based power to renewables, with solar and wind taking center stage. The Sudair Solar PV project, valued as one of the world’s largest single-source solar contracts, and the Dumat Al Jandal wind farm illustrate this change in action, each bringing over 1,500MW of fresh green energy online. The country’s National Renewable Energy Program has commissioned five new solar plants and two wind projects, aiming to inject 15,000MW into the grid within the next few years. By focusing on solar and wind farms, authorities are not only meeting rising demand but also freeing up oil for export and sharply cutting carbon emissions, solidifying Saudi Arabia’s reputation as a clean energy advocate.
- Mega Investments in Grid Digitalization and Smart Technologies
Digital transformation is emerging fast in Saudi Arabia’s power sector, with heavy investments in smart grids and automation. To keep pace with surging consumption, more than 5,000km of the power grid is being upgraded, integrating advanced technologies for remote monitoring and real-time data analysis. National grid modernization involves rolling out 5G infrastructure in 51 cities, making way for smart meters and automated power management that improve reliability and curb transmission losses. Siemens Energy’s collaborations with local partners have already brought world-class technologies into play, including the supply of advanced gas turbines and the expansion of local manufacturing capacity. These upgrades are positioning the Kingdom’s power sector at the cutting edge and building a more resilient, efficient, and digitally connected energy ecosystem.
- Rise of Proactive Foreign Partnerships and Local Manufacturing
Global companies are flocking to Saudi Arabia’s power market, spurred by new government programs and incentives. Deals such as Doosan Enerbility’s $612 million contract for a 1,800MW plant and TotalEnergies’ 300MW Rabigh 2 solar project show strong foreign participant engagement. Meanwhile, the drive for self-sufficiency is evident in the expansion of facilities like the Siemens Energy Dammam Hub, which is ramping up local production of key power plant components. This dual trend—strategic international collaborations alongside a “Made in Saudi” push— is accelerating knowledge transfer, local job creation, and technology adoption, all of which support a highly innovative and competitive power industry.
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Saudi Arabia Power Market Industry Segmentation:
The report has segmented the market into the following categories:
Analysis by Generation Source:
- Thermal
- Hydro
- Renewable
- Others
Regional Analysis:
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Future Outlook
Looking ahead, Saudi Arabia’s power sector is set to be one of the world’s most dynamic energy markets. With visionary policies fueling record investments, the country is not only scaling up traditional generation but is rapidly evolving into a global leader in renewables and grid innovation. The focus on sustainability, grid modernization, and foreign collaborations will keep drawing new players and capital, while the transition to clean energy is expected to deliver a more resilient and flexible power system. As urbanization and industrial activity continue growing, and as technologies like energy storage and smart metering mature, Saudi Arabia will likely achieve its ambitious energy mix targets. This means not just reliable power for homes and industries, but also new job opportunities, a cleaner environment, and a stronger, future-ready economy that can support the nation’s long-term vision for prosperity and global influence.
Research Methodology:
The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.
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