Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
The renewable energy market in Saudi Arabia has been experiencing a significant transformation in recent years, marked by a notable shift towards sustainability and cleaner energy sources. One of the key market trends is the increasing focus on solar power. The Kingdom has abundant sunlight throughout the year, making solar energy an attractive and viable option for power generation. The government has been actively promoting solar projects, with initiatives such as the National Renewable Energy Program (NREP), aimed at diversifying the energy mix and reducing dependence on fossil fuels.
Another noteworthy trend is the growing interest in wind energy. Saudi Arabia possesses vast areas with high wind potential, particularly in the northern regions. The government has recognized this opportunity and has started investing in wind power projects. The development of wind farms and the incorporation of wind energy into the national energy grid reflect a commitment to harnessing diverse renewable resources.
Furthermore, there is an increasing emphasis on energy storage solutions in Saudi Arabia. As renewable energy sources like solar and wind are intermittent, effective energy storage systems are essential to ensure a reliable and continuous power supply. The market has seen a rise in investments and research in battery technologies and other storage methods, facilitating the integration of renewable energy into the existing infrastructure.
In terms of policy and regulation, the Saudi government has been proactive in creating a conducive environment for the growth of the renewable energy sector. Regulatory frameworks, incentives, and long-term power purchase agreements have been established to attract private investments and facilitate the development of renewable projects. This strategic approach aligns with the Vision 2030 initiative, which aims to diversify the economy and promote sustainable development.
Collaborations and partnerships are also shaping the Saudi Arabian renewable energy market. The government has been fostering international cooperation with leading renewable energy companies and global organizations to leverage expertise, technology, and investments. These collaborations contribute to the exchange of knowledge and resources, fostering innovation and accelerating the pace of renewable energy adoption in the country.
Moreover, there is a growing awareness and acceptance of the environmental and economic benefits associated with renewable energy in Saudi Arabia. As concerns about climate change and sustainable development gain prominence globally, there is a shift in public perception towards cleaner and greener energy alternatives. This changing mindset, coupled with increasing environmental consciousness, is driving individuals, businesses, and industries to explore and adopt renewable energy solutions.
Despite these positive trends, challenges persist in the Saudi Arabian renewable energy market. The initial high costs of implementing renewable projects, the need for skilled manpower, and the integration of renewable energy into the existing power grid pose significant hurdles. However, ongoing efforts by the government and industry stakeholders to address these challenges indicate a commitment to overcoming obstacles and realizing the full potential of renewable energy in the Kingdom.
The renewable energy market in Saudi Arabia is witnessing a transformative journey characterized by a strong focus on solar and wind power, advancements in energy storage solutions, supportive regulatory frameworks, international collaborations, and a growing awareness of the benefits of clean energy. While challenges exist, the concerted efforts to overcome them signal a promising future for the expansion of renewable energy in Saudi Arabia, aligning with the broader global movement towards sustainable and environmentally friendly energy sources.
Saudi Arabia Renewable Energy Market Highlights:
Saudi Arabia's Renewable Energy Market Overview:
Saudi Arabia's renewable energy market size was valued at USD 336.8 Million in 2022. The renewable energy industry is projected to grow USD 109,1167.18 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 42.44% during the forecast period (2023 - 2032). Rising government investments, growing environmental concerns, and pressure to decrease the harmful consequences of greenhouse gases (GHG) are the main market drivers anticipated to propel Saudi Arabia's renewable energy market.
Source: Primary Research, MRFR Database, Secondary Research, and Analyst Review
Renewable Energy Market Trends
-
Growing environmental concerns are driving the market growth
Saudi Arabia's renewable energy market CAGR is expanding due to growing environmental concerns, which are driving a significant shift towards renewable energy and propelling the renewable energy market. The urgent need to combat climate change has spurred global efforts to transition from fossil fuels to sustainable alternatives. Governments, corporations, and consumers are increasingly investing in solar, wind, hydro, and other renewable sources. This shift is driven by environmental responsibility and economic considerations as renewable energy becomes more cost-competitive. The renewable energy market is thus thriving, propelled by a collective commitment to a greener, sustainable future. Governments, businesses, and consumers increasingly prioritize sustainable solutions, spurring innovation and investment in clean energy sources to mitigate climate change and ensure a greener, more resilient future.
Furthermore, supportive policies and plans are coupled with the ample availability of biomass feedstock. Renewable energy plants in the country have improved due to stringent government emissions regulations. The power scenario in the country has witnessed a change with the increased adoption of gas-based and renewable power sources compared to coal-based power generation. Expanding electricity distribution expenses, power outages induced by faults in the main grid, and stimulus programs presented by the government are anticipated to fuel end-users to shift toward arranging up hydropower systems. This is projected to boost the renewable energy market revenue. Stringent government regulations to mitigate climate change and promote sustainability are a powerful driver for the renewable energy market. These regulations create a favorable environment for the growth of renewable energy sources, fostering innovation, investment, and a transition towards cleaner and more sustainable energy solutions worldwide.
Renewable Energy Market Segment Insights:
Renewable Energy Type Insights
The Saudi Arabia Renewable Energy market segmentation, based on type, includes solar, wind, and others {hydro, biomass, etc.}. The solar segment dominated the market mostly due to its ability to turn sunlight directly into power. Solar panels are a fantastic solution for residences and businesses in sunny regions. Solar panels require a large amount of space to perform effectively, and the original cost and continuous maintenance of solar panels can be significant. However, the wind is the fastest-growing category due to the escalating demand for sustainable solutions, and the imperative to combat climate change is a potent driver. As wind technology advances, costs decline, rendering wind energy a competitive and environmentally conscious choice, further accelerating its prominence in the renewable energy landscape.
Figure 1: Saudi Arabia Renewable Energy Market by Type, 2022 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Renewable Energy Country Insights
The renewable energy market is witnessing growth driven by a strategic shift to diversify its energy mix. The country's abundant sunlight makes solar power a focal point, with ambitious projects like NEOM and the Saudi Green Initiative aiming to increase renewable capacity. Government initiatives, regulatory support, and international partnerships act as catalysts, attracting investments and fostering innovation. The transition aligns with Saudi Arabia's Vision 2030, illustrating a commitment to sustainable development, energy independence, and mitigating environmental impact. This paradigm shift positions the nation as a significant driver in the renewable energy sector.
Renewable Energy Key Market Players & Competitive Insights
Leading market participants are investing heavily in research and development to enhance their product lines, which will help the renewable energy market expand even more. Market participants are also undertaking different strategic activities to extend their footprint, with significant market developments including new product establishment, mergers and acquisitions, contractual agreements, and collaboration with other organizations. The renewable energy industry must deliver cost-effective items to extend and stay in a more competitive and growing market climate.
Prominent participants in the renewable energy market are attempting to expand market demand by investing in research and development operations, including ACWA Power, Alfanar Group, Abu Dhabi Future Energy Company (Masdar), Electricite de France SA, Enel SpA, Engie SA and Riyadh Renewable Energy Co.
Key Companies in the Renewable Energy market include
- ACWA Power
- Alfanar Group
- Engie SA
- Abu Dhabi Future Energy Company (Masdar)
- Electricite de France SA
- Enel SpA
- Riyadh Renewable Energy Co
Renewable Energy Industry Developments
February 2022:GADING Kencana Sdn Bhd, one of the largest solar farm operators in Malaysia, signed a MoU with March Global LLC of Saudi Arabia to collaborate in developing solar farms in the MEA and the ASEAN region. The first collaborative effort between them is to create a solar farm in Khulais, Saudi Arabia, with a capacity of 100 MW.
January 2021:ACWA Power agreed to a USD 125 million corporate facility to support its future growth pipeline of renewable energy projects. ACWA Power has had this facility for five years under a newly signed deal with APICORP (The Arab Petroleum Investments Corporation).
Renewable Energy Market Segmentation:
Renewable Energy Type Outlook
- Solar
- Wind
- Others ((Hydro, Biomass, etc.)
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
