Saudi Arabia Power Market Size (2024 - 2029)

The Saudi Arabia power generation market is projected to experience growth over the forecast period, driven by a shift towards cleaner energy sources such as solar, wind, and bioenergy, supported by favorable government policies. Despite potential challenges posed by regional geopolitical instability, the market's expansion is bolstered by opportunities arising from the privatization of the power sector, which could attract significant investments and expertise necessary for cost-effective renewable energy generation.

Market Size of Saudi Arabia Power Industry

Saudi Arabia Power Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 5.80 %
Market Concentration Low

Major Players

Saudi Arabia Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Power Market Analysis

The Saudi Arabia Power Market size is estimated at 87.81 gigawatt in 2024, and is expected to reach 116.41 gigawatt by 2029, growing at a CAGR of 5.80% during the forecast period (2024-2029).

  • Over the medium term, factors, such as increasing diversification of energy sources from oil and gas to cleaner energy sources, such as solar, wind, and bioenergy, are expected to drive the Saudi Arabian power market, along with supportive government policies leading to the development of renewable energy capacity during the forecast period.
  • On the other hand, the unstable geopolitics of the region is expected to act as a restraint for the market's growth.
  • Nevertheless, privatization of the power sector is expected to provide a significant opportunity. If the government capitalizes on this opening, it is likely to help with substantial investments needed to reform the power sector and provide the country with the expertise required to generate renewable energy at lower costs.

Saudi Arabia Power Industry Segmentation

The Power Market includes generating electricity using various methods, among which the most widely used are thermal and renewable energy sources. The Saudi Arabian power market is segmented by power generation and power transmission and distribution (T&D). By power generation, the market is segmented into thermal and renewables. For each segment except power transmission and distribution, the market sizing and forecasts have been done based on installed capacity (gigawatts).

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Saudi Arabia Power Market Size Summary

The Saudi Arabian power generation market is poised for significant growth over the forecast period, driven by a strategic shift towards diversifying energy sources. The country is increasingly investing in cleaner energy alternatives such as solar, wind, and bioenergy, supported by favorable government policies aimed at expanding renewable energy capacity. This transition is part of a broader effort to reduce dependence on hydrocarbons, which currently dominate the energy landscape. Despite challenges posed by regional geopolitical instability, the privatization of the power sector presents a substantial opportunity for attracting investments and acquiring the necessary expertise to enhance renewable energy production at reduced costs.

The thermal power segment, primarily fueled by natural gas and crude oil, continues to play a dominant role in Saudi Arabia's energy mix. However, the country is witnessing a gradual increase in electricity generation from gas-fired plants, reflecting a global trend towards cleaner energy. The government's commitment to expanding renewable energy infrastructure is evident in its ambitious plans to significantly boost solar and wind energy capacity. Notable projects, such as those undertaken by state-owned enterprises like Saudi Aramco and the King Abdullah Petroleum Studies and Research Center, underscore the nation's focus on reducing emissions and achieving its renewable energy targets. As a result, the Saudi Arabian power market is expected to experience robust growth, driven by both thermal and renewable energy developments.

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Saudi Arabia Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Power Generation Mix, 2022

    3. 1.3 Power Generation Installed Capacity and Forecast in GW, until 2028

    4. 1.4 Electricity Generation and Consumption Forecast in Terawatt-Hours (TWh), till 2028

    5. 1.5 Recent Trends and Developments

    6. 1.6 Government Policies and Regulations

    7. 1.7 Market Dynamics

      1. 1.7.1 Drivers

        1. 1.7.1.1 Increasing Diversification of Energy Sources from Oil and Gas to Cleaner Energy Sources

        2. 1.7.1.2 Supportive Government Policies for Increasing Renewable Power Capacity

      2. 1.7.2 Restraints

        1. 1.7.2.1 The Unstable Geopolitics of the Country

    8. 1.8 Supply Chain Analysis

    9. 1.9 PESTLE Analysis

Saudi Arabia Power Market Size FAQs

The Saudi Arabia Power Market size is expected to reach 87.81 gigawatt in 2024 and grow at a CAGR of 5.80% to reach 116.41 gigawatt by 2029.

In 2024, the Saudi Arabia Power Market size is expected to reach 87.81 gigawatt.

Saudi Arabia Power Generation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)