Saudi Arabia Solar Energy Market Size (2024 - 2029)

The solar energy market in Saudi Arabia is poised for substantial growth, driven by supportive government policies and efforts to meet increasing power demand through solar energy, which is expected to reduce dependency on fossil fuels. Despite challenges such as the adoption of alternative clean power sources and the availability of fossil fuels, the market is recovering from the impacts of the COVID-19 pandemic and returning to pre-pandemic levels. The National Renewable Energy Program's ambitious goals for solar energy capacity by 2030 are anticipated to offer significant opportunities for market expansion.

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Market Size of Saudi Arabia Solar Energy Industry

Saudi Arabia Solar Energy Market - Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 51.00 %
Market Concentration Medium

Major Players

Saudi Arabia Solar Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Solar Energy Market Analysis

The Saudi Arabian solar energy market is expected to reach 1,028 MW by the end of the current year, and it is projected to register a CAGR of 51% during the forecast period.

Although the COVID-19 pandemic affected the market studied in 2020, it has been recovering and reached pre-pandemic levels. Over the forecast period, factors such as supportive government policies, increasing efforts to meet power demand using solar energy, and decreased fossil-fuel dependency are expected to drive the market's growth. However, the increasing adoption of alternate clean power sources, such as wind, and the availability of fossil fuels are expected to restrain the growth of the solar energy market during the forecast period.

Saudi Arabia's National Renewable Energy Program aims to achieve 40 GW of solar energy installed capacity by 2030. This is expected to create significant opportunities for the market in the near future.

Saudi Arabia Solar Energy Industry Segmentation

Solar energy is a type of renewable energy where solar panels are used to generate electricity. Solar panels deployed on rooftops or mounted on the grounds are utilized effectively by energy consumers. 

Saudi Arabia's solar energy market is segmented by type into solar photovoltaic (PV) and concentrated solar energy (CSP). For each segment, the market sizing and forecasts have been done based on the installed capacity (MW).

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Saudi Arabia Solar Energy Market Size Summary

The solar energy market in Saudi Arabia is poised for significant growth, driven by supportive government policies and initiatives aimed at diversifying the energy mix and reducing dependency on fossil fuels. The National Renewable Energy Program, part of the broader Vision 2030, sets ambitious targets for solar energy capacity, with substantial investments in solar photovoltaic (PV) and concentrated solar power (CSP) projects. The country's unique geographical and climatic conditions make solar energy a particularly attractive option, and the declining costs of solar modules further bolster the market's potential. Despite challenges from alternative clean energy sources like wind and the availability of fossil fuels, the solar PV segment is expected to dominate the market due to its versatility and cost-effectiveness.

Saudi Arabia's commitment to expanding its renewable energy capacity is evident in its strategic projects and partnerships, including significant contracts awarded to international companies for solar PV developments. The ongoing and upcoming projects, such as those in Al Hanakia and Tabarjal, are set to enhance the country's solar energy infrastructure substantially. The market is moderately fragmented, with key players like ACWA Power Company and Alfanar Group actively participating in the sector's growth. As the country continues to implement its National Renewable Energy Program, the solar energy market is expected to experience robust expansion, contributing to Saudi Arabia's goal of achieving a substantial share of renewable energy in its primary energy mix by 2030.

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Saudi Arabia Solar Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Solar Energy Installed Capacity and Forecast in MW, till 2027

    3. 1.3 Renewable Energy Mix, 2020

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

      2. 1.6.2 Restraints

    7. 1.7 Supply Chain Analysis

    8. 1.8 PESTLE Analysis

  2. 2. MARKET SEGMENTATION - BY TYPE

    1. 2.1 Solar Photovoltaic (PV)

    2. 2.2 Concentrated Solar Power (CSP)

Saudi Arabia Solar Energy Market Size FAQs

The Saudi Arabia Solar Energy Market is projected to register a CAGR of greater than 51% during the forecast period (2024-2029)

Alfanar Group, Abu Dhabi Future Energy Company (Masdar), EDF Renewables, Saudi Electricity Company and ACWA Power Company are the major companies operating in the Saudi Arabia Solar Energy Market.

Solar Energy in Saudi Arabia Market Report Snapshots

Solar Energy in Saudi Arabia Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)