Report Overview

Supportive regulatory framework and rapid development of advanced transmission systems are expected to boost the growth of Saudi Arabia Smart Grid Network Market during the forecast period between 2024 and 2030.

Saudi Arabia Smart Grid Network Market - Industry Trends & Forecast Report, 2030

The Saudi Arabia Smart Grid Network Market size was estimated to be worth USD 1.42 billion in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Smart Grid Network Market size is projected to grow at a CAGR of 4.53%, reaching a value of USD 1.89 billion by 2030. Major growth factors for the Saudi Arabia Smart Grid Network Market include growing power demand and rising integration of advanced technologies, such as smart meters, automated feeder switches, and phasor measurement units. An increasing focus and government’s investments in efficient energy distribution and environmental concerns are also anticipated to drive the Saudi Arabia Smart Grid Network Market during the period in analysis.

Smart Grid Network – Overview

A smart grid is a digitally based electrical network that uses two-way digital communication to deliver power to customers. To increase efficiency, lower costs, and energy consumption, and increase the transparency and dependability of the energy supply chain, the smart grid system enables monitoring, analysis, control, and communication across the chain. It implies that they can continuously modify supply to meet demand, maintain their operations, and provide electricity to everything.

Saudi Arabia Smart Grid Network Market

Growth Drivers

Rising Adoption of Advanced Technologies

The smart grid network is based on the collection, monitoring, measuring, and sharing of data and therefore involves advanced technologies and systems, such as smart meters, phasor measurement units, big data, and non-intrusive load monitoring. Big data, for instance, allows smart grid networks to handle, efficiently analyze, and utilize customer information for better solutions, therefore, facilities cost saving. Saudi Arabia has been significantly investing in boosting the IT infrastructure of the Kingdom. According to an industry estimate, ICT spending in Saudi Arabia surpassed USD 34 billion in 2023. The bolstering of IT infrastructure in the Kingdom is anticipated to provide lucrative growth opportunities for the players in the Saudi Arabia Smart Grid Network Market.

Challenges

High Risk of Cyberattacks

One of the major challenges Saudi Arabia Smart Grid Network Market is the risk of cyberattacks due to its reliance on advanced technologies, such as sensors and data transmission. The most common cyberattacks on the smart grid are jamming attacks, brute force attacks, flooding attacks, and injection attacks. The smart grid network involves a hierarchy of interconnected sub-networks involving Wide Area Network (WAN), Neighborhood Area Network (NAN), and Home Area Network (HAN), and requires constant collection and remote sharing of user data, which exposes the system to the vulnerabilities of communication.

Saudi Arabia Smart Grid Network Market

Segmental Coverage

Saudi Arabia Smart Grid Network Market – By Hardware

Based on hardware, the Saudi Arabia Smart Grid Network Market is segmented into smart meters, sensors, controllers, routers, and others. The smart meters segment holds the largest share in the Saudi Arabia Smart Grid Network Market. Smart meters exchange data with the provider and the consumer in near real-time, often at half-hourly intervals. It provides several benefits over traditional meters, such as early fraud detection and incident prevention, and electricity usage regulation that eventually lowers operating costs.

Saudi Arabia Smart Grid Network Market – By Software

Based on software, the Saudi Arabia Smart Grid Network Market is segmented into advanced metering infrastructure (AMI), smart grid distribution management, IP address management, network security management, and others. The AMI segment accounts for the highest market share in the Saudi Arabia Smart Grid Network Market by software. As AMI enables the users to implement dynamic pricing of energy depending on power demand, eliminating the need for human meter readings. It helps in lowering the cost of delivering electricity and lessening the frequency of blackouts.

Saudi Arabia Smart Grid Network Market – By Technology

On the basis of technology, the Saudi Arabia Smart Grid Network Market is split into wired and wireless segments. The wireless segment accounts for a higher market share in the market by technology. Wireless technology is cost-efficient and ensures secure data transmission. It offers several other benefits over its counterpart, such as flexibility, easy installation, higher data transfer speed, and security. Wireless also offers high bandwidth, which drives its growth. Smart grid networks depend on Wi-Fi and other emerging smart grid communication networks, such as HAN, NAN, and WAN, for data transfer.

Saudi Arabia Smart Grid Network Market – By End User

Based on end user, the Saudi Arabia Smart Grid Network Market is segmented into residential, commercial, utilities, and others. The utilities segment dominates the Saudi Arabia Smart Grid Network Market owing to the deployment of grid technologies across the Kingdom. The Saudi government has been significantly investing in advancing the power supply infrastructure to meet the growing energy demands. In addition, rapid industrialization under economic diversification is anticipated to drive the utilities segment during the period in analysis.

Competitive Landscape

Major players operating in the Saudi Arabia Smart Grid Network Market include General Electric Company, ABB Ltd, Honeywell International Inc, Saudi Electricity Company SJSC, CG Power and Industrial Solutions Ltd, Alfanar, and Advanced Electronics Company (AEC).

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In December 2023 – ENOWA, an energy utility company based in Saudi Arabia, announced the development of a blueprint for a high-voltage smart grid for NEOM.

Scope of the Report

By Hardware

• Smart Meters

• Sensors

• Controllers

• Routers

• Others

By Software

• Advanced Metering Infrastructure (AMI)

• Smart Grid Distribution Management

• IP Address Management

• Network Security Management

• Others

By Services

• Consulting

• Deployment & Integration

• Maintenance & Support

• Managed Services

By Technology

• Wired

• Wireless

By End User

• Residential

• Commercial

• Utilities

• Others