Saudi Arabia Renewable Energy Market Analysis

ID: MRFR/E&P/12359-HCR

128 Pages

Anshula Mandaokar

September 2025

Saudi Arabia Renewable Energy Market Research Report Information By Type (Solar, Wind, and Others {Hydro, Biomass, etc.}) – Market Forecast Till 2032

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Market Analysis

In-depth Analysis of Saudi Arabia Renewable Energy Market Industry Landscape

The market dynamics of Saudi Arabia's renewable energy sector reflect a transformative shift driven by a combination of economic, environmental, and geopolitical factors. In recent years, the Kingdom has actively sought to diversify its energy mix, moving away from a heavy reliance on fossil fuels. This strategic initiative is aligned with global efforts to mitigate climate change and reduce carbon emissions. The government's commitment to renewable energy is evident through ambitious targets outlined in the Saudi Vision 2030 plan, aiming to increase the share of renewable energy in the total energy mix.

The primary driver of market dynamics in Saudi Arabia's renewable energy sector is the increasing focus on solar power. The country boasts abundant sunlight, making solar energy a natural choice for sustainable power generation. The vast expanses of desert land provide ample opportunities for large-scale solar projects. The Kingdom has set ambitious goals for solar capacity, with plans to develop gigawatts of solar projects in the coming years. These initiatives not only contribute to reducing the carbon footprint but also stimulate economic growth by creating job opportunities and attracting foreign investments.

Moreover, regulatory frameworks and policy support play a pivotal role in shaping the dynamics of the renewable energy market in Saudi Arabia. The government has implemented various measures, such as the National Renewable Energy Program (NREP), to facilitate the development of renewable projects. The NREP outlines a comprehensive strategy, including competitive auctions, to attract private sector participation in renewable energy ventures. This approach fosters healthy competition, promotes innovation, and ensures cost-effectiveness in project execution.

Collaboration between the public and private sectors is another significant aspect of the market dynamics. The government's partnerships with international energy companies bring in technical expertise, funding, and best practices. These collaborations not only accelerate the deployment of renewable energy projects but also contribute to knowledge transfer, enhancing the local industry's capabilities. The involvement of the private sector also aligns with the broader goal of diversifying the economy and reducing dependence on oil revenue.

Furthermore, advancements in technology have a profound impact on the renewable energy market in Saudi Arabia. The continuous improvement and cost reduction in solar photovoltaic (PV) technology make solar projects increasingly competitive compared to traditional fossil fuel sources. The integration of smart grid systems and energy storage solutions enhances the reliability and efficiency of renewable energy deployment, addressing the intermittent nature of solar and wind power.

Challenges, however, remain a part of the market dynamics. The intermittent nature of renewable sources, such as solar and wind, poses a challenge to maintaining a stable and reliable energy supply. To address this issue, the Kingdom is investing in energy storage technologies and exploring innovative solutions to enhance grid stability. Additionally, the need for skilled workforce and local expertise in renewable energy development is an ongoing concern, prompting efforts to invest in education and training programs.

The market dynamics of Saudi Arabia's renewable energy sector are undergoing a transformative journey, driven by a commitment to sustainability, regulatory support, technological advancements, and international collaborations. As the Kingdom progresses towards achieving its Vision 2030 goals, the renewable energy market is expected to witness further growth, contributing not only to a greener environment but also to the overall economic development and diversification of Saudi Arabia's energy landscape.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per Market Research Future Analysis, Saudi Arabia's renewable energy market was valued at USD 336.8 Million in 2022 and is projected to reach USD 109,1167.18 Million by 2032, reflecting a robust compound annual growth rate (CAGR) of 42.44% from 2023 to 2032. The market is driven by rising government investments, environmental concerns, and the need to reduce greenhouse gas emissions. The shift towards renewable energy is supported by stringent government regulations and a strategic focus on diversifying the energy mix, particularly through solar and wind energy.

Key Market Trends & Highlights

Key trends driving the growth of Saudi Arabia's renewable energy market include:

Market size in 2022: USD 336.8 Million; projected to grow to USD 109,1167.18 Million by 2032.
CAGR of 42.44% during the forecast period (2023 - 2032).
Solar segment dominated the market due to its efficiency in sunny regions.
Wind energy is the fastest-growing segment, driven by technological advancements and cost reductions.

Saudi Arabia Renewable Energy Market

CAGR

42.44% (2023 - 2032)

Market Size & Forecast

2022 Market Size	USD 336.8 Million
2032 Market Size	USD 109,1167.18 Million
CAGR	42.44% (2023 - 2032)

Major Players

Key players include ACWA Power, Alfanar Group, Abu Dhabi Future Energy Company (Masdar), Electricite de France SA, Enel SpA, Engie SA, and Riyadh Renewable Energy Co.

Market Trends

Growing environmental concerns are driving the market growth

The Kingdom of Saudi Arabia is poised to become a global leader in renewable energy, leveraging its abundant natural resources and strategic investments to diversify its energy portfolio and reduce dependence on fossil fuels.

Saudi Arabia Ministry of Energy

Saudi Arabia Renewable Energy Market Market Drivers

Growing Energy Demand

The Global Saudi Arabia Renewable Energy Market Industry is significantly influenced by the growing energy demand within the region. As the population increases and industrial activities expand, the need for sustainable energy solutions becomes more pressing. The Saudi government anticipates that energy consumption will rise by approximately 3.5 percent annually, necessitating a shift towards renewable sources. This rising demand is expected to drive investments in renewable energy infrastructure, contributing to a market valuation of 20.5 USD Billion in 2024. The alignment of energy supply with demand through renewable sources is crucial for achieving long-term energy sustainability in the Kingdom.

Market Growth Projections

The Global Saudi Arabia Renewable Energy Market Industry is poised for substantial growth, with projections indicating a market size of 20.5 USD Billion in 2024 and a potential increase to 50 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 8.44 percent from 2025 to 2035. The increasing investments in renewable energy infrastructure, coupled with supportive government policies and technological advancements, are likely to drive this expansion. The market's growth is indicative of a broader global trend towards sustainable energy solutions, positioning Saudi Arabia as a key player in the renewable energy sector.

Technological Advancements

Technological advancements play a pivotal role in shaping the Global Saudi Arabia Renewable Energy Market Industry. Innovations in solar and wind technologies have led to increased efficiency and reduced costs, making renewable energy sources more competitive. For instance, the introduction of advanced photovoltaic cells has improved solar energy capture, while wind turbine technology has enhanced energy output. These advancements are likely to contribute to the market's growth, with projections indicating a potential market size of 50 USD Billion by 2035. The continuous evolution of technology not only supports the transition to renewable energy but also positions Saudi Arabia as a leader in the global energy landscape.

Environmental Sustainability Goals

The Global Saudi Arabia Renewable Energy Market Industry is increasingly shaped by the emphasis on environmental sustainability. The Kingdom has recognized the need to address climate change and reduce carbon emissions, aligning its energy policies with global sustainability goals. Initiatives aimed at promoting renewable energy sources are integral to achieving these objectives. The commitment to sustainability is reflected in the National Vision 2030, which aims to increase the share of renewables in the energy mix. This focus on environmental responsibility is likely to drive market growth, with projections indicating a compound annual growth rate of 8.44 percent from 2025 to 2035.

Government Initiatives and Policies

The Global Saudi Arabia Renewable Energy Market Industry is bolstered by robust government initiatives aimed at diversifying the energy mix. The Saudi government has set ambitious targets, including generating 58.7 gigawatts of renewable energy by 2030, which is expected to significantly reduce reliance on fossil fuels. This commitment is reflected in the National Renewable Energy Program, which outlines various projects and investments. As a result, the market is projected to reach 20.5 USD Billion in 2024, indicating a strong foundation for future growth. The proactive policies not only enhance energy security but also attract foreign investments, further stimulating the industry.

International Collaboration and Investment

International collaboration and investment are vital drivers of the Global Saudi Arabia Renewable Energy Market Industry. The Kingdom has actively sought partnerships with global energy firms to leverage expertise and technology in renewable energy projects. Notable collaborations include agreements with international companies for solar and wind projects, which enhance local capabilities and foster knowledge transfer. This collaborative approach is expected to attract significant foreign direct investment, further propelling the market towards a projected size of 50 USD Billion by 2035. The influx of capital and expertise from abroad is likely to accelerate the development of renewable energy initiatives in Saudi Arabia.

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.

Get more detailed insights about Saudi Arabia Renewable Energy Market Research Report – Forecast till 2032

Regional Insights

Key Players and 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 Saudi Arabia Renewable Energy Market market include

Industry Developments

Q3 2025: Saudi Arabia Awards Record Breaking Renewables Projects Saudi Arabia awarded 15GW of renewable energy contracts in a single round, the largest tranche to date, as part of its accelerated push to reach 100-130GW of renewables by 2030. The awards include a power purchase agreement for the 700MW Yanbu wind farm and bring total awarded capacity to 38.7GW.
Q3 2025: Saudi Arabia Signs $8.3 Billion Deal for 15 GW Solar and Wind Projects with ACWA Power Saudi Arabia signed power purchase agreements for seven new solar and wind projects totaling 15,000 MW, with investments exceeding SAR 31 billion (approx. USD 8.3 billion). The deals were signed with a consortium led by ACWA Power, Badeel (PIF subsidiary), and Aramco Power under the National Renewable Energy Program.

Future Outlook

Saudi Arabia Renewable Energy Market Future Outlook

The Saudi Arabia Renewable Energy Market is projected to grow at an 8.44% CAGR from 2024 to 2035, driven by government initiatives, technological advancements, and increasing energy demand.

New opportunities lie in:

Invest in solar energy storage solutions to enhance grid reliability.
Develop innovative financing models for renewable energy projects.
Leverage smart grid technologies to optimize energy distribution.

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Renewable Energy Type Outlook

Solar
Wind
Others ((Hydro, Biomass, etc.)

Report Scope

Report Attribute/Metric	Details
Market Size 2022	USD 336.8 Million
Market Size 2032	USD 109,1167.18 Million
Compound Annual Growth Rate (CAGR)	42.44% (2023-2032)
Base Year	2022
Market Forecast Period	2023-2032
Historical Data	2018- 2022
Market Forecast Units	Value (USD Billion)
Report Coverage	Growth Factors, Revenue Forecast, Market Competitive Landscape, and Trends
Segments Covered	Type and Region
Countries Covered	Saudi Arabia
Key Companies Profiled	ACWA Power, Alfanar Group, Abu Dhabi Future Energy Company (Masdar), Electricite de France SA, Enel SpA, Engie SA and Riyadh Renewable Energy Co
Key Market Opportunities	Rising government investments
Key Market Dynamics	Rising environmental concerns coupled with pressure to reduce the harmful effects of greenhouse gases (GHG) The growing environmental concerns

Market Highlights

Author

Anshula Mandaokar

Team Lead - Research

She holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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FAQs

How much is the renewable energy market?

The Saudi Arabia renewable energy market size was valued at USD 336.8 Million in 2022.

What is the expansion rate of the renewable energy market?

The market is projected to expand at a CAGR of 42.44% during the forecast period, 2023-2032.

Who are the key participants in the renewable energy market?

The key players in the market are ACWA Power, Alfanar Group, Abu Dhabi Future Energy Company (Masdar), Electricite de France SA, Enel SpA, Engie SA, and Riyadh Renewable Energy Co.

Which type led the renewable energy market?

The solar category dominated the renewable energy market in 2022.

'TABLE OF CONTENTS
EXECUTIVE SUMMARY
MARKET INTRODUCTION
Definition
1. Scope of the Study
  1. Research Objective
Assumptions
1. Limitations
RESEARCH METHODOLOGY
1. Overview
2. Data Mining
3. Secondary Research
4. Primary Research
Primary Interviews and Information Gathering Process
1. Breakdown of Primary
Respondents
1. Forecasting Model
2. Market Size Estimation
Bottom-Up Approach
1. Top-Down Approach
2. Data Triangulation
3. Validation
MARKET DYNAMICS
1. Overview
2. Drivers
3. Restraints
4. Opportunities
MARKET FACTOR ANALYSIS
Value Chain Analysis
1. Porter’s Five Forces Analysis
  1. Bargaining
Power of Suppliers
1. Bargaining Power of Buyers
  1. Threat of
New Entrants
1. Threat of Substitutes
  1. Intensity of Rivalry
2. COVID-19 Impact Analysis
  1. Market Impact Analysis
Country Impact
1. Opportunity and Threat Analysis
SAUDI ARABIA
RENEWABLE ENERGY MARKET, BY TYPE
1. Overview
2. Solar
3. Wind
4. Others ((Hydro, Biomass, etc.)
SAUDI ARABIA RENEWABLE ENERGY MARKET,
BY COUNTRY
1. Overview
2. Saudi Arabia
COMPETITIVE LANDSCAPE
1. Overview
2. Competitive Analysis
3. Market Share Analysis
4. Major Growth Strategy in the Saudi Arabia Renewable Energy Market,
Competitive Benchmarking
1. Leading Players in Terms of Number of Developments
in the Saudi Arabia Renewable Energy Market,
1. Key developments and Growth
Strategies
1. New Product Launch/Service Deployment
  1. Merger
& Acquisitions
1. Joint Ventures
2. Major Players Financial
Matrix
1. Sales & Operating Income, 2022
  1. Major Players
R&D Expenditure. 2022
COMPANY PROFILES
1. ACWA Power
Company Overview
1. Financial Overview
  1. Products Offered
  2. Key Developments
  3. SWOT Analysis
  4. Key Strategies
2. ALFANAR ENERGY
  1. Company Overview
  2. Financial Overview
  3. Products Offered
  4. Key Developments
  5. SWOT Analysis
  6. Key Strategies
3. Abu Dhabi Future Energy Company (Masdar)
  1. Financial Overview
  2. Products Offered
  3. Key Developments
  4. SWOT Analysis
  5. Key Strategies
4. Electricite de France SA
  1. Company Overview
  2. Financial
Overview
1. Products Offered
  1. Key Developments
  2. SWOT
Analysis
1. Key Strategies
2. Engie SA
  1. Company Overview
  2. Financial Overview
  3. Products Offered
  4. Key Developments
  5. SWOT Analysis
  6. Key Strategies
3. Enel SpA
  1. Financial Overview
  2. Products Offered
  3. Key Developments
  4. SWOT Analysis
  5. Key Strategies
4. Riyadh Renewable Energy Co.
  1. Company Overview
  2. Financial
  3. Products Offered
  4. Key Developments
  5. SWOT
  6. Key Strategies
APPENDIX
1. References
Related Reports
LIST OF TABLES
TABLE 1 SAUDI ARABIA: SUSTAINABLE
AVIATION FUEL MARKET, BY TYPE, 2018-2032 (USD BILLION)
LIST OF FIGURES
FIGURE 1 RESEARCH PROCESS
FIGURE 2 MARKET STRUCTURE FOR THE SAUDI ARABIA
RENEWABLE ENERGY MARKET
FIGURE 3 MARKET DYNAMICS FOR THE SAUDI ARABIA RENEWABLE
ENERGY MARKET
FIGURE 4 SAUDI ARABIA: SUSTAINABLE AVIATION FUEL MARKET, SHARE
(%), BY TYPE, 2022
FIGURE 5 SAUDI ARABIA: SUSTAINABLE AVIATION FUEL MARKET,
SHARE (%), BY COUNTRY, 2022
FIGURE 6 SAUDI ARABIA RENEWABLE ENERGY MARKET:
COMPANY SHARE ANALYSIS, 2022 (%)
FIGURE 7 ACWA POWER: FINANCIAL OVERVIEW SNAPSHOT
FIGURE 8 ACWA POWER: SWOT ANALYSIS
FIGURE 9 ALFANAR ENERGY: FINANCIAL OVERVIEW
SNAPSHOT
FIGURE 10 ALFANAR ENERGY: SWOT ANALYSIS
FIGURE 11 ABU DHABI FUTURE
ENERGY COMPANY (MASDAR): FINANCIAL OVERVIEW SNAPSHOT
FIGURE 12 ABU DHABI FUTURE
ENERGY COMPANY (MASDAR): SWOT ANALYSIS
FIGURE 13 ELECTRICITE DE FRANCE SA:
FINANCIAL OVERVIEW SNAPSHOT
FIGURE 14 ELECTRICITE DE FRANCE SA: SWOT ANALYSIS
FIGURE 15 ENGIE SA: FINANCIAL OVERVIEW SNAPSHOT
FIGURE 16 ENGIE SA: SWOT
FIGURE 17 ENEL SPA: FINANCIAL OVERVIEW SNAPSHOT
FIGURE 18 ENEL
SPA: SWOT ANALYSIS
FIGURE 19 RIYADH RENEWABLE ENERGY CO.: FINANCIAL OVERVIEW
FIGURE 20 RIYADH RENEWABLE ENERGY CO.: SWOT ANALYSIS'

Saudi Arabia Renewable Energy Market Segmentation

Market Segmentation Overview

Detailed segmentation data will be available in the full report
Comprehensive analysis by multiple parameters
Regional and country-level breakdowns
Market size forecasts by segment

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