Saudi Arabia Power Market Size To Surpass 104.4 GW By 2033: Demand & Outlook

(MENAFN- IMARC Group) The Saudi Arabia power market size was valued at 81.7 GW in 2024. Looking forward, IMARC Group estimates the market to reach 104.4 GW by 2025-2033, exhibiting a CAGR of 2.76% from 2025-2033. Rapid industrialization, population growth, and renewable energy investments are driving demand and shaping the expansion of Saudi Arabia's power market.

Key Highlights

• Market size (2024): 81.7 GW
• Forecast (2033): 104.4 GW
• CAGR (2025–2033): 2.76%
• Saudi Arabia's power market shifts to renewables, targeting 50% by 2030, with solar and smart grid advancements.
• Vision 2030, population growth, and industrial expansion fuel demand and renewable energy investments.
• Thermal power dominates, accounting for over 90% of electricity generation, primarily from natural gas.

How Is AI Transforming the Power Market in Saudi Arabia?

• AI is transforming Saudi Arabia's power market by enabling precise energy demand prediction, helping utilities balance supply efficiently during peak consumption periods like summer.
• Smart grids powered by AI optimize energy distribution, reduce losses, and integrate renewable sources, with 32% grid automation achieved and 40% targeted by end-2025.
• Saudi Aramco uses AI for predictive maintenance and production optimization, boosting operational efficiency and safety while reducing emissions in its extensive energy operations.
• The Saudi government's $14.9 billion AI initiative supports AI adoption in power infrastructure, driving innovation in renewable integration, smart grids, and energy management systems.
• AI-driven automation streamlines meter installation and equipment maintenance across the power sector, improving accuracy, reducing downtime, and enhancing overall grid reliability for consumers.

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Saudi Arabia Power Market Trends and Drivers

• Saudi Arabia's power market is increasingly driven by a shift from oil and gas to renewable sources like solar, wind, and bioenergy, supported by strong government backing.
• Vision 2030 and the National Renewable Energy Program are key drivers, with significant investments targeting 50% clean energy in the power mix through mega solar and wind projects.
• Rapid urbanization, industrial expansion, and a growing population are pushing electricity demand higher, leading to substantial investment in power infrastructure and capacity.
• Advanced technologies such as smart grids, AI-powered infrastructure, and battery energy storage systems are transforming power reliability, efficiency, and integration of renewables.
• Privatization and foreign direct investment are opening the market to private players, accelerating capacity expansion and modernizing the power sector with global partnerships and digital innovation.

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:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Power Market

• Jul 2025: Saudi Arabia awarded contracts for 15GW of solar and wind projects, the largest tranche to date, advancing its renewable power strategy and reducing oil dependency in power generation.
• May 2025: GE Vernova secured orders for five advanced 7H-Class gas turbines at Qurayyah power plant, with readiness for carbon capture, supporting Saudi Arabia's gas power expansion plans.
• Feb 2025: ACWA Power signed seven partnership agreements including with Saudi Aramco for advanced photovoltaic energy forecasting and vanadium flow battery testing to boost renewables integration and storage.

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IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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