Saudi Arabia Power Market Size to Surge 104.4 GW by 2033, With a CAGR of 2.76%

Saudi Arabia Power Market Overview

Market Size in 2024: 81.7 GW
Market Forecast in 2033: 104.4 GW
Market Growth Rate 2025-2033: 2.76%

According to IMARC Group's latest research publication, "Saudi Arabia Power Market Size, Share, Trends and Forecast by Generation Source, and Region, 2025-2033", 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.

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How AI is Reshaping the Future of Saudi Arabia Power Market

● AI-driven predictive maintenance in Saudi power plants reduced unplanned outages by 30%, boosting reliability and lowering operational costs significantly.​

● Smart grid AI algorithms optimize energy distribution, cutting transmission losses by 25% and enhancing real-time load balancing in urban and industrial areas.​

● Government AI initiatives support renewable energy integration, improving forecasting accuracy for solar and wind output by over 40%, stabilizing grid performance.​

● AI-enabled demand response programs in Saudi Arabia help reduce peak load consumption by 15%, resulting in lowered energy costs and enhanced grid stability.​

● Power sector AI chatbots and virtual assistants handle over 50% of customer inquiries, speeding resolution times and improving service satisfaction across utilities.

Saudi Arabia Power Market Trends & Drivers:

● Saudi Arabia's power market is rapidly evolving, primarily driven by Vision 2030's ambitious agenda to diversify energy sources and modernize the grid. The government's strong commitment includes investments in large renewable projects such as solar and wind parks with combined capacities planned to reach several gigawatts. For example, in 2024, Saudi Arabia signed power purchase agreements amounting to 5,500 MW of renewable energy capacity, an initiative valued at over USD 3 billion. This diversification aims to reduce oil dependence, meet rising electricity demand, and build a sustainable energy future while supporting massive infrastructure growth.​

● Population growth and urbanization continue to fuel electricity demand in Saudi Arabia. Rapid expansion of residential areas, industrial zones, and commercial sectors increases power consumption, requiring substantial enhancements in generation and distribution capabilities. Utilities are responding by expanding power plants and upgrading infrastructure; in 2024 alone, agreements for 10.9 GW of new power projects, including gas-fired and solar plants, were signed. This expansion ensures reliable power supply for booming sectors and widespread electrification, addressing both urban and rural demand while supporting economic development.​

● Technological innovation and grid modernization are ushering in a smarter and more efficient power market. Saudi electricity companies are integrating smart grid technologies with digital monitoring and automation systems, improving reliability and minimizing transmission losses. In the first half of 2025, nearly 40% of distribution substations were automated, with fiber optic networks substantially expanded to support faster data and control flows. Energy storage systems also play a key role, with multiple gigawatt-hours of battery capacity commissioned, enabling better load management and renewable integration. These advances improve customer satisfaction with service reliability reaching over 85%.

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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:

● Saudi Electricity Company (SEC)
● National Grid SA
● Acwa Power
● Kepco
● SPPC

Recent News and Developments in Saudi Arabia Power Market

● October 2025: Major battery storage projects commissioned, adding gigawatt-hour capacity to Saudi grid, boosting renewable energy management and peak load balancing.

● September 2025: Government launched a smart grid initiative enhancing energy distribution efficiency by 25%, supporting the integration of renewable energy sources.

● August 2025: Saudi Electricity Company integrated AI-driven predictive maintenance systems, reducing unplanned power outages by 30% and improving grid reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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