Saudi Arabia Smart Grid Market

Saudi Arabia Smart Grid Market Size and Share: 

The Saudi Arabia smart grid market size was valued at USD 990.7 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 3,272.80 Million by 2033, exhibiting a CAGR of 14.20% from 2025-2033. The market is growing rapidly, propelled by increasing energy demands, the integration of renewable energy, and advancements in grid technologies. The deployment of smart meters, grid automation, and energy management solutions enhances efficiency and reliability.

Saudi Arabia’s drive towards energy diversification under Vision 2030 is a major catalyst for the growth of its smart grid market. The government’s focus on integrating renewable energy sources, such as solar and wind, has created a strong demand for advanced grid infrastructure to handle variable energy outputs. For instance, in December 2024, Saudi Arabia announced plans to automate 40% of its electricity distribution network by 2025, in line with Vision 2030 objectives. This will involve the use of smart meters and real-time monitoring to improve efficiency and support renewable energy integration. Smart grids facilitate efficient energy distribution and storage, ensuring grid stability and reliability. Additionally, the rising investments in clean energy projects and the need to reduce reliance on fossil fuels further highlight the importance of adopting advanced grid technologies.

Another key driver is the modernization of the nation’s electricity infrastructure. The widespread deployment of advanced metering infrastructure (AMI) and grid automation technologies is improving energy efficiency and enabling real-time monitoring of electricity consumption. Initiatives by the Saudi Electricity Company to deploy smart meters nationwide are enhancing billing accuracy and reducing energy waste. For instance, in October 2024, Saudi Meters Company partnered with Saudi Electricity Company, advancing local energy sector development and supporting Saudi Arabia's transition to a smarter, sustainable power grid. Furthermore, advancements in IoT and artificial intelligence technologies are optimizing grid operations and addressing the growing energy demands of the country’s expanding industrial and residential sectors.

Saudi Arabia Smart Grid Market Trends: 

Increasing Adoption of Renewable Energy Integration

Saudi Arabia’s drive to diversify its energy mix is accelerating the integration of renewable energy sources into its smart grid systems. Vision 2030 plays a pivotal role in advancing this transition, emphasizing large-scale deployment of solar and wind energy projects to reduce reliance on fossil fuels. For instance, in December 2024, TotalEnergies and Aljomaih Energy signed a 25-year Power Purchase Agreement with Saudi Power Procurement Company for the 300 MW Rabigh 2 solar project, advancing Saudi Arabia's renewable energy ambitions and Vision 2030 objectives. Moreover, smart grids enable efficient energy distribution and storage, enhancing grid stability and reliability. Advancements in energy storage and grid automation technologies further enhance the utilization of renewable energy, making the grid more resilient and adaptive to future demands. Furthermore, these efforts align with Saudi Arabia’s goal of achieving a sustainable energy system while strengthening energy security and reducing environmental impact.

Growth in Smart Metering Deployment

The deployment of smart metering systems is transforming energy management in Saudi Arabia. These meters provide precise real-time data on consumption of electricity, allowing consumers to monitor usage and utilities to optimize grid operations. Saudi Electricity Company is leading this initiative, aiming for widespread adoption across the country. For instance, in August 2024, Saudi Electricity Company (SEC) secured a USD 2 billion five-year syndicated loan led by Bank of China. The funding supports SEC’s efforts to expand and modernize its power network across the Middle East region. In addition, smart meters also enhance energy efficiency, reduce operational costs, and minimize energy theft. This trend reflects the nation’s broader digitalization efforts within the power sector, fostering greater transparency and accountability in energy consumption.

Increasing Investments in Grid Modernization

Saudi Arabia is witnessing substantial investments in grid modernization to support its growing energy demands and sustainability goals. The focus is on deploying technologies like automated distribution management systems, predictive maintenance tools, and Internet of Things (IoT) integration. These upgrades improve grid efficiency, minimize outages, and enhance energy security. Government and private sector collaborations are further accelerating these modernization efforts. Moreover, as part of the National Renewable Energy Program, modernized grids are critical for integrating renewable energy sources seamlessly while ensuring stability. For instance, in December 2023, ENOWA, a NEOM subsidiary, announced a high-voltage smart grid blueprint for NEOM, reducing corridor footprints and undergrounding costs by over 50%, representing a significant advancement in large-scale energy transition and infrastructure efficiency.

Saudi Arabia Smart Grid Industry Segmentation: 

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia smart grid market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on component and end user.

Analysis by Component:

• Software
  • Advanced Metering Infrastructure
  • Smart Grid Distribution Management
  • Smart Grid Network Management
  • Substation Automation
  • Others
• Hardware
  • Sensor
  • Programmable Logic Controller
  • AMI Meter
  • Networking Hardware
  • Others
• Services
  • Consulting
  • Support and Maintenance
  • Deployment and Integration
     

The software segment is vital to the Saudi Arabia smart grid market, offering tools for grid management, real-time data analytics, and energy optimization. These software solutions enable utilities to monitor energy usage, predict demand, and detect faults, ensuring efficient grid operations. Advanced systems like energy management software, demand response programs, and grid analytics enhance decision-making and operational reliability. The growing integration of renewable energy sources further boosts demand for software that supports dynamic load balancing and grid stability. With increased focus on digital transformation, utilities are heavily investing in advanced software to modernize their energy infrastructure and improve service delivery.

The hardware segment forms the backbone of the Saudi Arabia smart grid market, encompassing essential components like smart meters, sensors, transformers, and energy storage systems. These physical assets enable seamless energy transmission, real-time data collection, and efficient grid performance. Smart meters are widely deployed to improve energy monitoring and billing accuracy, while IoT-enabled sensors ensure better fault detection and system automation. Furthermore, investments in grid infrastructure upgrades, including advanced transformers and storage solutions, are crucial for accommodating renewable energy integration. The hardware segment is critical in enhancing grid resilience, ensuring energy security, and supporting the nation’s growing energy demands.

The services segment is integral to the Saudi Arabia smart grid market, encompassing consultation, installation, maintenance, and support services. Expert consultancy aids in planning and deploying smart grid systems tailored to the country’s energy goals. Installation and integration services ensure seamless implementation of advanced hardware and software solutions, while ongoing maintenance guarantees system reliability and efficiency. Additionally, training and support services empower utilities and personnel to maximize the benefits of smart grid technologies. With the increasing complexity of modern grid systems, the demand for specialized services is rising, ensuring the successful adoption and long-term sustainability of smart grid initiatives.

Analysis by End User:

• Residential
• Commercial
• Industrial
   

The residential segment is a significant contributor to the Saudi Arabia smart grid market, driven by increasing electricity demand from a growing population and urbanization. Smart meters are being widely deployed in homes to provide accurate billing, enable energy consumption monitoring, and encourage energy efficiency. Advanced home energy management systems integrated with smart grids allow residents to optimize their electricity usage. Government initiatives to modernize the power sector and promote renewable energy adoption further boost the role of smart grids in residential areas, enabling reliable energy distribution and reducing wastage, ultimately supporting sustainability goals.

The commercial segment plays a pivotal role in the Saudi Arabia smart grid market, focusing on enhancing energy efficiency in businesses, offices, and retail spaces. Smart grid solutions provide advanced energy management systems, enabling commercial establishments to monitor real-time electricity consumption and reduce operational costs. Integration with renewable energy systems ensures consistent power supply and aligns with sustainability objectives. Additionally, demand response programs supported by smart grids help manage peak energy loads, improving grid stability. These solutions are particularly critical for large-scale commercial complexes that require reliable energy distribution and efficient management of their extensive power demands.

The industrial segment has a major importance for the Saudi Arabia smart grid due to the high consumption of energy by the manufacturing, oil and gas, and other sectors. The benefits of smart grid technologies are providing industrial facilities with advanced monitoring, predictive maintenance, and real-time energy management features, which helps minimize energy wastage while reducing operational costs to keep downtime low. The further integration of renewable energy sources will aid sustainability and energy security objectives. Furthermore, the advanced grid solutions allow industries to keep optimizing their energy consumption, improving process efficiency, and bringing their contributions to the economic and environmental objectives in Vision 2030.

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region
   

The Northern and Central regions of Saudi Arabia are key contributors to the smart grid market due to their rapidly expanding urban centers and increasing energy demands. Riyadh, as the capital, drives large-scale energy infrastructure projects, emphasizing smart grid technologies for efficient power management. The region is witnessing significant investments in advanced metering infrastructure and grid automation to enhance operational reliability. Efforts to integrate renewable energy sources further highlight the importance of modernized grids. Moreover, these developments align with national objectives to create a resilient, sustainable, and efficient energy system for the region’s growing population.

The Western region comprises Jeddah, Mecca, and Medina and is an important area in the Saudi Arabia smart grid market. This region experiences high energy demand, principally due to the high population density and millions of pilgrims who visit this area every year. The smart grid technologies are being deployed to improve the energy distribution services, control the peak loads, and guarantee the system stability during different seasons. Additionally, ventures such as use of improved grid systems and solar projects near Mecca encourage the use of renewable energy projects. Furthermore, modernization of energy infrastructure serves the purpose of achieving urbanization goals in the region as well as providing a reliable power supply for residents and visitors.

The Eastern region contributes significantly as one of the major drivers for the adoption of smart grid technologies in Saudi Arabia. Industrial facilities require modern grid solutions for effective management of their immense energy consumption. Moreover, smart grids monitor energy use in real time and offer predictive maintenance to minimize downtime and operating costs. The existence of large-scale commercial renewable energy projects such as large-scale solar farms from such sources that require a modern, automated grid system. This ensure of reliable energy distribution is in line with the Vision 2030 sustainability goals and the contribution of the region toward diversifying the country's economy.

The Southern region has become a lucrative market for smart grid due to increased government support for the development of energy networks in the area. The growing urbanization and industrialization require an advanced grid to augment increased energy demand. Smart meters and grid automation are being installed to encourage energy efficiency and reduce energy losses. In addition, the renewable potential of the region will be harnessed through several initiative projects with an integration of smart grids, focusing mainly on solar. These developments not only improve the availability of power supply but also contribute to the regional economic growth and sustainability goals.

 Competitive Landscape: 

The Saudi Arabia smart grid market is shaped by increasing investments in advanced technologies and innovative energy solutions. Key market players are focusing on deploying integrated systems for energy management, grid automation, and renewable energy integration to address the country’s evolving energy demands. In addition, collaborative efforts between private organizations and government initiatives under Vision 2030 are driving market growth. Moreover, emphasis on cost-efficient and scalable solutions is helping companies meet the country’s growing energy demand. For instance, in September 2024, Larsen & Toubro’s Power Transmission & Distribution division secured contracts to develop advanced grid systems, including ±500 kV HVDC links, 380 kV overhead lines, and a 380 kV gas-insulated substation in Saudi Arabia, underscoring the market’s commitment to modernization and technological leadership.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia smart grid market with detailed profiles of all major companies.

Latest News and Developments: 

• In November 2024, Engie and Al Jouf Cement signed a PPA to build a 22 MWp solar PV plant in Turaif, Saudi Arabia. The project advances Saudi Vision 2030, focusing on emission reduction and renewable energy adoption in the industrial sector. The implementation of renewable energy in the industrial segment enhances sustainability, grid stability, and efficacy, supporting the advancement of Saudi Arabia's smart grid market.
• In September 2024, Huawei Digital Power launched a solar-storage microgrid in Saudi Arabia’s Red Sea New City, delivering over 1 TWh of green electricity annually. With 400 MW PV capacity and 1.3 GWh energy storage, the system operates independently of power networks, leveraging grid-forming technology and intelligent inverters to ensure stability and efficiency in off-grid and grid-connected modes.

 Saudi Arabia Smart Grid Market Report Scope:

Key Benefits for Stakeholders: 

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia smart grid market from 2019-2033. 
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia smart grid market. 
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia smart grid industry and its attractiveness. 
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.