KSA Smart Meter Market Outlook to 2030

KSA Smart Meter Market Overview 

• The KSA Smart Meter Market was valued at USD 2000 million in 2023. The market growth is driven by strong government support and regulations, the development of smart grids, and the modernization of utility operations.  

• Key players in the market include Saudi Electricity Company (SEC), Elster Group GmbH, Landis+Gyr, Itron Inc., and Schneider Electric. These companies dominate the market due to their extensive product portfolios and strong distribution networks. 

• In 2023, Saudi Electricity Company (SEC) announced the successful installation of 10 million smart meters across the kingdom, a significant milestone in its efforts to modernize the country's electricity infrastructure. This development is part of a broader initiative to enhance grid reliability and efficiency, supported by a USD 1 billion investment from the SEC.

KSA Smart Meter Current Market Analysis 

• The rapid urbanization in KSA, coupled with the development of smart cities, has fueled the demand for smart meters. In 2024, the urban population in KSA is projected to reach 36 million, representing a growth from previous years. Smart city projects, such as the NEOM city development, include extensive smart grid and smart meter installations to enhance energy management and sustainability. 

• The integration of IoT and AI technologies in smart meters is a notable trend in the KSA market. The AI-powered smart meters are being used to predict energy consumption patterns, optimize energy distribution, and detect anomalies. This trend is expected to continue, with utilities investing heavily in IoT and AI to enhance the functionality and efficiency of smart metering systems. 

• The West Region, including cities like Jeddah and Mecca, has an adequate commercial presence, with many businesses, shopping centres, and hotels. The commercial sector in this region leads the market, driven by the need for efficient energy management to reduce operational costs. 

KSA Smart Meter Market Segmentation 

The KSA smart meter market is segmented into distribution channels like technology, end-user, and region-wise. 

• By Technology: The Smart Meter Market in KSA is segmented into different product types like Advanced Metering Infrastructure (AMI), Automatic Meter Reading (AMR) and Others. In 2023, Advanced Metering Infrastructure (AMI) dominated the market due to its comprehensive features, including two-way communication, real-time monitoring, and data analytics. 

• By End-User: The Smart Meter Market in KSA is segmented into different end users like residential, commercial and industrial. In 2023, the residential segment was the largest end-user, driven by the large number of households and government incentives for smart meter adoption. 

• By Region: The Smart Meter Market in KSA is segmented into different regions like North, South, East, and West Regions. In 2023, the West Region, including major cities like Jeddah and Mecca, dominated the market. This dominance is attributed to the efficient energy management needs in businesses, shopping centers, and hotels in the region.  

KSA Smart Meter Market Competitive Landscape 

Company	Establishment Year	Headquarters
Saudi Electricity Company (SEC)	2000	Riyadh, Saudi Arabia
Elster Group GmbH	1836	Essen, Germany
Landis+Gyr	1896	Zug, Switzerland
Itron Inc.	1977	Liberty Lake, USA
Schneider Electric	1836	Rueil-Malmaison, France

The competitive landscape of the KSA smart meter market can be summed up in the following way: 

• Schneider Electric: In 2023, Schneider Electric introduced a new range of IoT-enabled smart meters in the KSA market. These meters provide enhanced functionalities, including real-time monitoring, remote management, and detailed energy usage reports. The launch of these advanced meters has been well-received, contributing to Schneider Electric's strong market presence in the kingdom. 

• Elster Group: In 2023, Elster Group GmbH secured a noteworthy contract from the Saudi government to supply and install 1 million smart meters. This contract, worth USD 150 million, reinforces Elster's position as a leading player in the KSA smart meter market. The deployment is expected to be finished by 2025, contributing to the market's overall growth. 

• Landis+Gyr: In 2022, Landis+Gyr launched a new range of AI-powered smart meters in KSA. These meters are equipped with advanced data analytics capabilities, allowing for predictive maintenance and improved energy management. The introduction of these innovative meters has set a new standard in the market, driving the adoption of advanced metering technologies. 

KSA Smart Meter Market Analysis 

KSA Smart Meter Market Growth Drivers: 

• Increasing Demand for Energy Efficiency: With the rising cost of energy and growing environmental concerns, there is a strong push towards energy efficiency in KSA. In 2024, it was reported that the residential sector accounted for nearly 50% of total electricity consumption. The demand for energy-efficient solutions has driven the adoption of smart meters, with over 3 million units installed in 2023 alone. 

• Advancement in Meter Technology: Advancements in technology, particularly in IoT and AI, have significantly enhanced the capabilities of smart meters. In 2024, IoT-enabled smart meters equipped with advanced data analytics features were introduced, allowing real-time monitoring and predictive maintenance. These technological improvements have made smart meters more attractive to utilities and consumers alike, contributing to their widespread adoption. 

KSA Smart Meter Market Challenges: 

• High Initial Costs: The deployment of smart metering systems involves substantial initial investments, which can be a barrier for smaller utilities and residential consumers. In 2024, the average cost of installing a smart meter, including infrastructure and maintenance, was USD 200 per unit. This high cost can deter adoption, particularly in regions with lower economic resources.  

• Technical Integration and Compatibility Issues: Integrating smart meters with existing grid infrastructure can be technically challenging. In 2024, it was reported that 20% of smart meter deployments faced issues related to compatibility with existing systems, resulting in delays and increased costs. The need for seamless integration and interoperability between different smart meter models and the existing grid infrastructure requires significant technical expertise and investment. 

• Consumer Resistance and Awareness: Despite the benefits of smart meters, there is still resistance from some consumers due to a lack of awareness and understanding of their advantages. Overcoming this resistance requires extensive education and awareness campaigns to highlight the benefits of smart meters in terms of energy savings and cost efficiency. Utilities and government agencies are working to address these concerns through targeted outreach programs and demonstrations of smart meter capabilities. 

KSA Smart Meter Market Government Initiatives:  

• Saudi Vision 2030: Launched in 2016, Saudi Vision 2030 aims to diversify the economy and reduce dependency on oil. As part of this initiative, investments have been made in modernizing the energy sector, including the deployment of smart grid and metering technologies. By 2024, the initiative had allocated USD 10 billion towards energy sector modernization, emphasizing the importance of smart meters in achieving energy efficiency and sustainability goals. 

• Investment in Renewable Energy Projects: The Saudi government has made investments in renewable energy projects, which are closely linked with smart metering technology. These projects aim to increase the share of renewable energy in the national grid, making it essential to have smart meters that can handle variable energy inputs from sources like solar and wind. 

• Regulatory Mandates: In 2024, the Saudi government introduced new regulations mandating the installation of smart meters in all new residential and commercial buildings. This regulatory support is aimed at accelerating the adoption of smart meters and ensuring compliance with energy efficiency standards. The mandates are expected to drive market growth by creating a consistent demand for smart metering solutions across the kingdom. 

KSA Smart Meter Future Market Outlook 

The KSA Smart Meter Market is expected to continue its growth in the coming years. The market is also expected to see a shift towards more organized retail, with established players and online platforms expanding their reach. 

KSA Smart Meter Future Market Trends 

• Development of Smart Cities: The development of smart cities is driving the demand for advanced metering infrastructure. Projects like NEOM and the Red Sea Project are incorporating smart grid technologies to ensure efficient energy management. In 2024, these projects were expected to install over 2 million smart meters, contributing to the growth of the market.  

• Energy Storage and Management Solutions: The integration of energy storage and management solutions with smart meters is an emerging trend. In 2024, several utility companies in KSA like Saudi Electricity Company (SEC), National Grid SA, and Marafiq began pilot projects to integrate smart meters with battery storage systems and energy management software. This integration allows for better demand response and load balancing, reducing peak demand and enhancing grid stability.  

• Regulatory Support and Incentives: Regulatory support and financial incentives are playing a crucial role in promoting the adoption of smart meters. In 2024, the Saudi government introduced new regulations mandating the installation of smart meters in all new residential and commercial buildings. Additionally, financial incentives such as subsidies and tax benefits for smart meter installations have been implemented to encourage adoption.