Saudi Arabia Power Market Overview
Market Size in 2025: 84.0 GW
Market Forecast in 2034: 106.0 GW
Market Growth Rate 2026-2034: 2.62%
According to IMARC Group's latest research publication, "Saudi Arabia Power Market Size, Share, Trends and Forecast by Generation Source, and Region, 2026-2034", The Saudi Arabia power market size reached 84.0 GW in 2025. Looking forward, IMARC Group estimates the market to reach 106.0 GW by 2026-2034, exhibiting a CAGR of 2.62% from 2026-2034.
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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:
Rapid urbanization and industrial expansion are driving Saudi Arabia’s power market growth, with electricity consumption rising sharply due to expanding residential and commercial needs. The industrial sector alone accounts for a significant share of demand, contributing to a 10% increase in energy use in recent periods. Government investments in infrastructure, such as new substations and transmission lines, aim to ensure reliable electricity supply across urban and remote areas. These efforts support the country’s economic diversification goals while addressing the growing power needs of smart cities like NEOM and other development projects.
The Kingdom’s aggressive push towards renewable energy under Vision 2030 is transforming the power market. Large-scale solar and wind projects have attracted substantial investments and led to a surge in renewable electricity share. Over 4.5 GW of solar and wind capacity have been awarded through competitive tenders, supported by companies like ACWA Power. Ambitious targets for renewable energy, combined with energy storage solutions on a gigawatt-hour scale, enhance grid stability and promote sustainability. This shift not only reduces reliance on oil but also positions Saudi Arabia as a leading player in clean energy transition.
Technological advancements and grid modernization are reshaping the Saudi power market by increasing efficiency and resilience. The adoption of smart grid technologies, including IoT, AI, and blockchain, enhances grid management and transparency. Recent partnerships, such as between SPARK Utilities and Saudi Electricity Project Development Company, focus on upgrading utility services, improving grid resilience, and enhancing customer connections. Investments in transmission and distribution infrastructure, including high-voltage substations and long-distance lines, further boost capacity to accommodate renewable integration, supporting sustainable growth of the power sector aligned with national energy goals.
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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