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Ksa Electrical Grid Market Report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Saudi Arabia Electrical Grid Market, valued at USD 2.25 billion, is growing due to rapid urbanization, energy demand, and renewable projects like the National Renewable Energy Program targeting 50% renewables by 2030.

Region:Middle East

Author(s):Rebecca

Product Code:KRAD4360

Pages:99

Published On:December 2025

About the Report

Base Year 2024

Saudi Arabia Electrical Grid Market Overview

  • The Saudi Arabia Electrical Grid Market is valued at USD 2.25 billion, based on a five-year historical analysis. This growth is primarily driven by the country's rapid urbanization, increasing energy demand, and significant investments in renewable energy projects. The government's commitment to diversifying energy sources and enhancing grid infrastructure has further propelled market expansion.
  • Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their large populations and industrial activities. Riyadh, as the capital, is a central hub for government initiatives and investments, while Jeddah and Dammam are critical for commercial and industrial operations, making them focal points for electrical grid development.
  • In 2023, the Saudi government implemented the National Renewable Energy Program, which aims for about 50% of electricity generation capacity to come from renewable sources by 2030. This regulation aims to enhance energy security, reduce carbon emissions, and promote sustainable development within the electrical grid sector.
Saudi Arabia Electrical Grid Market Size

Saudi Arabia Electrical Grid Market Segmentation

By Grid Element:This segmentation includes various components essential for the electrical grid's functionality, such as generation, transmission, distribution, and system operations. Each sub-segment plays a crucial role in ensuring a reliable and efficient power supply across the country.

Saudi Arabia Electrical Grid Market segmentation by Grid Element.

By Component:This segmentation focuses on the various components that make up the electrical grid, including hardware, software, and services. Each component is vital for the effective operation and management of the electrical grid, ensuring that it meets the growing demands of consumers and industries.

Saudi Arabia Electrical Grid Market segmentation by Component.

Saudi Arabia Electrical Grid Market Competitive Landscape

The Saudi Arabia Electrical Grid Market is characterized by a dynamic mix of regional and international players. Leading participants such as Saudi Electricity Company (SEC), National Grid SA, ACWA Power, Saudi Aramco (Power Systems & Grid Business), NEOM Energy & Water Company (ENOWA), Siemens Energy Saudi Arabia, Hitachi Energy Saudi Arabia, Schneider Electric Saudi Arabia, GE Vernova (Grid Solutions) Saudi Arabia, Elsewedy Electric Saudi Arabia, Alfanar, Saudi Cable Company, Bahra Electric, Larsen & Toubro (L&T) Saudi Arabia – Power T&D, Hyosung Heavy Industries Saudi Arabia contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Electricity Company (SEC)

1999

Riyadh, Saudi Arabia

National Grid SA

2000

Riyadh, Saudi Arabia

ACWA Power

2004

Riyadh, Saudi Arabia

Siemens Energy Saudi Arabia

2010

Riyadh, Saudi Arabia

Hitachi Energy Saudi Arabia

2015

Riyadh, Saudi Arabia

Company

Establishment Year

Headquarters

Business Role (Utility, EPC, OEM, Technology Provider)

Installed Grid Capacity Supported (MVA / circuit?km)

Revenue from Saudi Grid-Related Activities

3–5 Year Revenue CAGR in Saudi Grid Business

Order Backlog / Project Pipeline in KSA

Market Share by Segment (Transmission, Distribution, Smart Grid)

Saudi Arabia Electrical Grid Market Industry Analysis

Growth Drivers

  • Increasing Demand for Renewable Energy Sources:The Saudi Arabian government aims to generate 58.7 GW of renewable energy by 2030, with 40 GW from solar and 16 GW from wind. This ambitious target is driven by the need to diversify energy sources and reduce reliance on fossil fuels. In future, the renewable energy sector is projected to attract investments exceeding 7 billion USD, reflecting a robust commitment to sustainable energy solutions and enhancing grid capacity.
  • Government Initiatives for Infrastructure Development:The Saudi Vision 2030 plan allocates approximately 500 billion USD for infrastructure projects, including the electrical grid. This investment aims to modernize the grid, improve reliability, and support economic growth. In future, the government is expected to initiate several key projects, enhancing grid connectivity and efficiency, which will significantly bolster the electrical grid market and attract private sector participation.
  • Technological Advancements in Grid Management:The adoption of advanced technologies such as IoT and AI in grid management is transforming the electrical landscape in Saudi Arabia. In future, investments in smart grid technologies are projected to reach 1.2 billion USD, enhancing operational efficiency and reliability. These technologies facilitate real-time monitoring and predictive maintenance, reducing outages and improving service delivery, thus driving market growth.

Market Challenges

  • High Initial Investment Costs:The transition to a modern electrical grid requires substantial upfront investments, estimated at around 10 billion USD for the next five years. This financial burden can deter private investors and slow down project implementation. In future, the challenge of securing funding for large-scale infrastructure projects remains critical, as the government seeks to balance public and private sector contributions to meet energy demands.
  • Aging Infrastructure:A significant portion of Saudi Arabia's electrical grid infrastructure is over 30 years old, leading to inefficiencies and increased maintenance costs. In future, it is estimated that nearly 40 percent of the grid will require urgent upgrades or replacements. This aging infrastructure poses a challenge to reliability and service quality, necessitating immediate attention and investment to ensure a stable energy supply.

Saudi Arabia Electrical Grid Market Future Outlook

The future of the Saudi Arabia electrical grid market is poised for transformative growth, driven by a strong emphasis on renewable energy integration and technological innovation. As the government continues to invest in smart grid technologies and infrastructure modernization, the market is expected to evolve significantly. In future, the focus on sustainability and energy efficiency will likely lead to enhanced grid resilience, improved service delivery, and increased private sector participation, fostering a more robust energy landscape.

Market Opportunities

  • Expansion of Smart Grid Technologies:The increasing adoption of smart grid technologies presents a significant opportunity for market players. With an expected investment of 1.2 billion USD in future, companies can leverage these technologies to enhance grid efficiency and reliability, ultimately improving customer satisfaction and reducing operational costs.
  • Investment in Energy Storage Solutions:The growing demand for energy storage solutions is another promising opportunity. In future, the energy storage market in Saudi Arabia is projected to reach 500 million USD, driven by the need for grid stability and renewable energy integration. This investment can facilitate better energy management and support the transition to a more sustainable energy system.

Scope of the Report

SegmentSub-Segments
By Grid Element (Generation, Transmission, Distribution, System Operations)

Generation Infrastructure

High-Voltage Transmission Networks

Medium- & Low-Voltage Distribution Networks

System Operation & Control Centers

Interconnection & Export Lines

By Component (Hardware, Software, Services)

Substation Equipment (Transformers, Switchgear, Protection)

Transmission & Distribution Lines and Cables

Smart Metering & Advanced Metering Infrastructure

Grid Automation, SCADA & Control Systems

Grid Cybersecurity & Communication Systems

Engineering, Procurement & Construction (EPC) Services

Operation & Maintenance (O&M) Services

By Voltage Level (High, Medium, Low)

High Voltage (>110 kV)

Medium Voltage (1–110 kV)

Low Voltage (<1 kV)

By Application (Generation Integration, Transmission, Distribution, Smart Grid & Digitalization)

Renewable & Conventional Generation Grid Integration

Long-Distance Bulk Power Transmission

Urban & Rural Distribution Networks

Smart Grid, Advanced Metering & Demand Response

Grid Stability, Ancillary Services & Energy Storage Integration

By End-User (Utilities, Industrial, Commercial, Residential, Government & Defense)

Saudi Electricity Company & National Grid SA

Large Industrial Users (Oil & Gas, Petrochemicals, Mining, Manufacturing)

Commercial & Real Estate Developers

Residential Consumers

Government, Defense & Critical Infrastructure

By Region (Northern & Central, Western, Eastern, Southern)

Northern & Central Region (including Riyadh)

Western Region (including Makkah, Madinah, Jeddah, NEOM)

Eastern Region (including Dammam, Dhahran, Jubail)

Southern Region

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Saudi Electricity Company, Saudi Energy Efficiency Center)

Manufacturers and Producers of Electrical Equipment

Utility Companies

Energy Sector Policy Makers

Infrastructure Development Agencies

Energy Technology Startups

Financial Institutions and Banks

Players Mentioned in the Report:

Saudi Electricity Company (SEC)

National Grid SA

ACWA Power

Saudi Aramco (Power Systems & Grid Business)

NEOM Energy & Water Company (ENOWA)

Siemens Energy Saudi Arabia

Hitachi Energy Saudi Arabia

Schneider Electric Saudi Arabia

GE Vernova (Grid Solutions) Saudi Arabia

Elsewedy Electric Saudi Arabia

Alfanar

Saudi Cable Company

Bahra Electric

Larsen & Toubro (L&T) Saudi Arabia Power T&D

Hyosung Heavy Industries Saudi Arabia

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Saudi Arabia Electrical Grid Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Saudi Arabia Electrical Grid Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Saudi Arabia Electrical Grid Market Analysis

3.1 Growth Drivers

3.1.1 Increasing demand for renewable energy sources
3.1.2 Government initiatives for infrastructure development
3.1.3 Technological advancements in grid management
3.1.4 Urbanization and population growth

3.2 Market Challenges

3.2.1 High initial investment costs
3.2.2 Regulatory hurdles and compliance issues
3.2.3 Aging infrastructure
3.2.4 Limited skilled workforce

3.3 Market Opportunities

3.3.1 Expansion of smart grid technologies
3.3.2 Investment in energy storage solutions
3.3.3 Partnerships with international firms
3.3.4 Development of microgrid systems

3.4 Market Trends

3.4.1 Shift towards decentralized energy systems
3.4.2 Increased focus on sustainability and carbon neutrality
3.4.3 Adoption of digital technologies in grid management
3.4.4 Growing interest in electric vehicle infrastructure

3.5 Government Regulation

3.5.1 Renewable Energy Policy Framework
3.5.2 National Grid Code Compliance
3.5.3 Energy Efficiency Standards
3.5.4 Environmental Impact Assessments

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Saudi Arabia Electrical Grid Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Saudi Arabia Electrical Grid Market Segmentation

8.1 By Grid Element (Generation, Transmission, Distribution, System Operations)

8.1.1 Generation Infrastructure
8.1.2 High-Voltage Transmission Networks
8.1.3 Medium- & Low-Voltage Distribution Networks
8.1.4 System Operation & Control Centers
8.1.5 Interconnection & Export Lines

8.2 By Component (Hardware, Software, Services)

8.2.1 Substation Equipment (Transformers, Switchgear, Protection)
8.2.2 Transmission & Distribution Lines and Cables
8.2.3 Smart Metering & Advanced Metering Infrastructure
8.2.4 Grid Automation, SCADA & Control Systems
8.2.5 Grid Cybersecurity & Communication Systems
8.2.6 Engineering, Procurement & Construction (EPC) Services
8.2.7 Operation & Maintenance (O&M) Services

8.3 By Voltage Level (High, Medium, Low)

8.3.1 High Voltage (>110 kV)
8.3.2 Medium Voltage (1–110 kV)
8.3.3 Low Voltage (<1 kV)

8.4 By Application (Generation Integration, Transmission, Distribution, Smart Grid & Digitalization)

8.4.1 Renewable & Conventional Generation Grid Integration
8.4.2 Long-Distance Bulk Power Transmission
8.4.3 Urban & Rural Distribution Networks
8.4.4 Smart Grid, Advanced Metering & Demand Response
8.4.5 Grid Stability, Ancillary Services & Energy Storage Integration

8.5 By End-User (Utilities, Industrial, Commercial, Residential, Government & Defense)

8.5.1 Saudi Electricity Company & National Grid SA
8.5.2 Large Industrial Users (Oil & Gas, Petrochemicals, Mining, Manufacturing)
8.5.3 Commercial & Real Estate Developers
8.5.4 Residential Consumers
8.5.5 Government, Defense & Critical Infrastructure

8.6 By Region (Northern & Central, Western, Eastern, Southern)

8.6.1 Northern & Central Region (including Riyadh)
8.6.2 Western Region (including Makkah, Madinah, Jeddah, NEOM)
8.6.3 Eastern Region (including Dammam, Dhahran, Jubail)
8.6.4 Southern Region

9. Saudi Arabia Electrical Grid Market Competitive Analysis

9.1 Market Share of Key Players(Micro, Small, Medium, Large Enterprises)

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Business Role (Utility, EPC, OEM, Technology Provider)
9.2.3 Installed Grid Capacity Supported (MVA / circuit?km)
9.2.4 Revenue from Saudi Grid-Related Activities
9.2.5 3–5 Year Revenue CAGR in Saudi Grid Business
9.2.6 Order Backlog / Project Pipeline in KSA
9.2.7 Market Share by Segment (Transmission, Distribution, Smart Grid)
9.2.8 Geographic Coverage within KSA (Regions Served)
9.2.9 Average Project Execution Time vs Plan
9.2.10 Grid Reliability KPIs (SAIDI/SAIFI where applicable)
9.2.11 Technology & Innovation Index (Digital, HVDC, Storage Integration)
9.2.12 Partnership & Localization Depth (In?Kingdom Content, JVs)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis(By Class and Payload)

9.5 Detailed Profile of Major Companies

9.5.1 Saudi Electricity Company (SEC)
9.5.2 National Grid SA
9.5.3 ACWA Power
9.5.4 Saudi Aramco (Power Systems & Grid Business)
9.5.5 NEOM Energy & Water Company (ENOWA)
9.5.6 Siemens Energy Saudi Arabia
9.5.7 Hitachi Energy Saudi Arabia
9.5.8 Schneider Electric Saudi Arabia
9.5.9 GE Vernova (Grid Solutions) Saudi Arabia
9.5.10 Elsewedy Electric Saudi Arabia
9.5.11 Alfanar
9.5.12 Saudi Cable Company
9.5.13 Bahra Electric
9.5.14 Larsen & Toubro (L&T) Saudi Arabia – Power T&D
9.5.15 Hyosung Heavy Industries Saudi Arabia

10. Saudi Arabia Electrical Grid Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Energy
10.1.2 Ministry of Finance
10.1.3 Ministry of Municipal and Rural Affairs
10.1.4 Ministry of Environment, Water and Agriculture

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Corporate Investments in Renewable Energy
10.2.2 Budget Allocations for Grid Modernization
10.2.3 Expenditure on Energy Efficiency Programs
10.2.4 Funding for Smart Grid Initiatives

10.3 Pain Point Analysis by End-User Category

10.3.1 Residential Users
10.3.2 Commercial Users
10.3.3 Industrial Users
10.3.4 Government & Utilities

10.4 User Readiness for Adoption

10.4.1 Awareness of Smart Grid Technologies
10.4.2 Willingness to Invest in Renewable Solutions
10.4.3 Training and Support Needs
10.4.4 Infrastructure Readiness

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of Energy Savings
10.5.2 Expansion of Renewable Energy Use Cases
10.5.3 Long-term Cost Benefits
10.5.4 User Satisfaction and Feedback Mechanisms

11. Saudi Arabia Electrical Grid Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations(Branding strategies, Product USPs)

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan(Urban retail vs rural NGO tie-ups)

3.1 Urban Distribution Strategies

3.2 Rural Distribution Strategies


4. Channel & Pricing Gaps(Underserved routes, Pricing bands)

4.1 Channel Analysis

4.2 Pricing Band Evaluation


5. Unmet Demand & Latent Needs(Category gaps, Consumer segments)

5.1 Category Gaps Analysis

5.2 Consumer Segments Identification


6. Customer Relationship(Loyalty programs, After-sales service)

6.1 Loyalty Program Development

6.2 After-sales Service Strategies


7. Value Proposition(Sustainability, Integrated supply chains)

7.1 Sustainability Initiatives

7.2 Integrated Supply Chain Strategies


8. Key Activities(Regulatory compliance, Branding, Distribution setup)

8.1 Regulatory Compliance Activities

8.2 Branding Activities

8.3 Distribution Setup Activities


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy(Product mix, Pricing band, Packaging)

9.1.1 Product Mix Considerations
9.1.2 Pricing Band Strategy
9.1.3 Packaging Solutions

9.2 Export Entry Strategy(Target countries, Compliance roadmap)

9.2.1 Target Countries Identification
9.2.2 Compliance Roadmap Development

10. Entry Mode Assessment(JV, Greenfield, M&A, Distributor Model)

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model Evaluation


11. Capital and Timeline Estimation (Capital requirements, Timelines)

11.1 Capital Requirements Analysis

11.2 Timeline Development


12. Control vs Risk Trade-Off (Ownership vs Partnerships)

12.1 Ownership Considerations

12.2 Partnership Evaluations


13. Profitability Outlook (Breakeven analysis, Long-term sustainability)

13.1 Breakeven Analysis

13.2 Long-term Sustainability Strategies


14. Potential Partner List (Distributors, JVs, Acquisition targets)

14.1 Distributor Identification

14.2 Joint Venture Opportunities

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry (Market Setup ? Market Entry ? Growth Acceleration ? Scale & Stabilize)

15.1.1 Market Setup Activities
15.1.2 Market Entry Strategies
15.1.3 Growth Acceleration Tactics
15.1.4 Scale & Stabilize Actions

15.2 Key Activities and Milestones

15.2.1 Key Activities Identification
15.2.2 Milestone Development

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of government publications and reports from the Saudi Electricity Company
  • Review of industry reports from the Ministry of Energy and other regulatory bodies
  • Examination of market trends and forecasts from energy sector think tanks and research institutions

Primary Research

  • Interviews with senior executives from major utility companies operating in Saudi Arabia
  • Surveys targeting energy policy experts and consultants in the electrical grid sector
  • Field interviews with engineers and project managers involved in grid infrastructure projects

Validation & Triangulation

  • Cross-validation of data through multiple sources including government and industry reports
  • Triangulation of findings from primary interviews with secondary data insights
  • Sanity checks conducted through expert panel discussions and feedback sessions

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total electricity consumption trends based on national energy statistics
  • Segmentation of market size by residential, commercial, and industrial sectors
  • Incorporation of future growth projections based on government energy diversification plans

Bottom-up Modeling

  • Collection of data on installed capacity and grid infrastructure from utility companies
  • Operational cost analysis based on maintenance and expansion of grid facilities
  • Volume and revenue estimates derived from electricity sales and tariff structures

Forecasting & Scenario Analysis

  • Multi-variable regression analysis incorporating factors such as population growth and urbanization
  • Scenario modeling based on potential regulatory changes and renewable energy integration
  • Development of baseline, optimistic, and pessimistic forecasts through 2035

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Residential Electricity Consumption120Homeowners, Property Managers
Commercial Grid Usage100Facility Managers, Business Owners
Industrial Power Demand90Operations Directors, Energy Managers
Renewable Energy Integration80Project Developers, Sustainability Officers
Grid Infrastructure Development70Engineers, Project Managers

Frequently Asked Questions

What is the current value of the Saudi Arabia Electrical Grid Market?

The Saudi Arabia Electrical Grid Market is valued at approximately USD 2.25 billion, driven by rapid urbanization, increasing energy demand, and significant investments in renewable energy projects, as well as government initiatives to diversify energy sources and enhance grid infrastructure.

Which cities are key players in the Saudi Arabia Electrical Grid Market?

What are the main drivers of growth in the Saudi Arabia Electrical Grid Market?

What challenges does the Saudi Arabia Electrical Grid Market face?

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