Saudi Arabia Smart Grid Network Market: Analysis, Size, Share and Forecast | 2034

Saudi Arabia Smart Grid Network Market Outlook

The Saudi Arabia smart grid network market is experiencing rapid growth, with an estimated market size of approximately USD 0.72 billion in 2024. The market is projected to expand at a compound annual growth rate (CAGR) of 14.7% from 2025 to 2034, reaching a value of around USD 2.51 billion by 2034. This growth is driven by the increasing demand for efficient energy management systems, as well as the government’s efforts to modernise the country’s energy infrastructure and enhance sustainability through smart grid technology.

The Saudi government has been focusing on diversifying its energy sources, improving energy efficiency, and reducing its dependency on fossil fuels. As part of its Vision 2030 plan, the country is investing in renewable energy projects and modernising its power grids to optimise the generation, transmission, and distribution of electricity. Smart grids play a crucial role in achieving these objectives by integrating advanced technologies that enable real-time monitoring, automated control, and the efficient distribution of electricity. As the demand for electricity continues to rise due to population growth, urbanisation, and industrial expansion, smart grids are seen as essential for enhancing the reliability, flexibility, and sustainability of the energy sector in Saudi Arabia.

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Saudi Arabia Smart Grid Network Market Trends

Several key trends are shaping the growth of the smart grid network market in Saudi Arabia. One of the most significant trends is the increasing integration of renewable energy sources, such as solar and wind, into the national power grid. Saudi Arabia is investing heavily in renewable energy projects as part of its Vision 2030 plan, and the need for a smart grid that can manage the intermittent nature of renewable energy is driving demand for smart grid technologies. Smart grids enable better integration of renewable energy by allowing for real-time monitoring and the efficient distribution of electricity generated from these sources.

Another important trend is the growing adoption of Internet of Things (IoT) technologies in the energy sector. IoT devices, such as smart meters and sensors, are being used to monitor energy consumption, detect faults, and improve grid management. The proliferation of IoT technology is enabling smarter, more connected energy systems that can operate more efficiently, reducing energy waste and improving overall grid performance. The adoption of IoT technologies in Saudi Arabia’s smart grid network is expected to continue increasing, contributing to the growth of the market.

Additionally, the rise of digitalisation and automation in the energy sector is enhancing the capabilities of smart grids. Automated systems that use artificial intelligence (AI) and machine learning algorithms are being implemented to predict energy demand, optimise energy distribution, and detect potential issues before they become major problems. The use of these technologies is improving the efficiency, reliability, and cost-effectiveness of Saudi Arabia’s energy infrastructure, further driving the demand for smart grid solutions.

Saudi Arabia Smart Grid Network Market Growth

The Saudi Arabia smart grid network market is expected to experience significant growth during the forecast period, driven by both governmental initiatives and technological advancements. The growing focus on renewable energy integration, energy efficiency, and grid modernisation is driving the demand for smart grid infrastructure.

The government’s Vision 2030 plan plays a vital role in shaping the market, as it encourages the adoption of innovative technologies to meet the country’s energy needs. With a focus on energy diversification, energy efficiency, and sustainability, the government is prioritising smart grid investments. The increasing demand for reliable and sustainable energy solutions to support residential, commercial, and industrial sectors is expected to boost market growth.

Furthermore, as Saudi Arabia seeks to reduce its carbon footprint and improve energy consumption, smart grid technologies are emerging as a critical solution to these challenges. Smart grids enable real-time monitoring and automated control of energy flow, allowing for better demand management and more efficient energy usage, which is essential for maintaining grid stability in a country undergoing rapid urbanisation and industrialisation.

Saudi Arabia Smart Grid Network Market Segmentation

The Saudi Arabia smart grid network market can be segmented by component, communication technology, and application.

• Breakup by Component:
  • Hardware: The hardware segment is expected to dominate the smart grid market in Saudi Arabia, as it includes essential infrastructure components such as smart meters, transformers, and communication equipment. Hardware plays a crucial role in the deployment of smart grid systems, enabling real-time data collection, energy management, and automated control. With the increasing demand for grid automation, the hardware segment is anticipated to experience significant growth.
  • Software: The software segment encompasses the development of applications and platforms that manage the data collected from smart meters and other IoT devices. These software solutions are crucial for energy management, fault detection, load forecasting, and grid optimisation. The growing demand for energy efficiency and better grid management is expected to drive the software segment’s growth in Saudi Arabia.
  • Services: The services segment includes the installation, maintenance, and support services for smart grid systems. As the adoption of smart grid technologies increases, the need for services such as system integration, consulting, and training will grow, driving the demand for service providers in the market.
• Breakup by Communication Technology:
  • Wireline: Wireline communication technologies, such as power line communication (PLC) and fibre-optic networks, are expected to play a significant role in the smart grid market in Saudi Arabia. These technologies offer stable, high-speed communication for real-time data transmission and are particularly useful for the efficient management of large-scale grid systems.
  • Wireless: Wireless communication technologies, including radio frequency (RF), Wi-Fi, and cellular networks, are also widely used in smart grid deployments. Wireless communication enables greater flexibility, lower installation costs, and improved scalability, making it a popular choice for smart grid applications in both urban and rural areas.
• Breakup by Application:
  • Generation: The generation segment involves the use of smart grids in power generation facilities to optimise energy production. With the increasing focus on renewable energy sources, smart grids help in managing and integrating power generated from solar, wind, and other renewable sources into the grid. The growing shift towards renewable energy generation is driving the demand for smart grid technologies in this application.
  • Transmission: In the transmission sector, smart grids help improve the efficiency and reliability of power transmission by providing real-time data on transmission line conditions, energy flow, and potential faults. Smart grids help utilities monitor and control the transmission network, ensuring that electricity is transmitted efficiently and with minimal losses.
  • Distribution: The distribution segment is expected to see significant growth as smart grids are increasingly used to optimise the distribution of electricity to end consumers. With the rising demand for reliable and uninterrupted power supply, utilities are adopting smart grid technologies to manage energy distribution, reduce outages, and improve grid reliability.
  • Consumption: In the consumption sector, smart grid technologies help consumers monitor and manage their energy usage, leading to improved energy efficiency and cost savings. The widespread adoption of smart meters and home energy management systems is contributing to the growth of this application segment.

Market Key Players

The key players in the Saudi Arabia smart grid network market include:

• Schneider Electric SE
• General Electric Company
• Alstom SA
• CG Power and Industrial Solutions Ltd.
• Advanced United Systems Co. Ltd.
• Alfanar Group
• Others: Several other regional and international players are contributing to the growth of the smart grid market in Saudi Arabia. These companies offer a wide range of smart grid solutions, including hardware, software, and services, to help utilities and industries optimise energy management, enhance grid reliability, and integrate renewable energy sources. These players are expected to continue driving innovation and contributing to the growth of the market.