Market Size of Saudi Arabia Industrial Electrical Components Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 2.80 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Saudi Arabia Industrial Electrical Components Market Analysis
The Saudi Arabia industrial electrical components market was valued at USD 2825.9 million in 2019, and it is anticipated to reach USD 3009.9 million by 2026, registering a CAGR of more than 2.8% during 2021-2026. Saudi Arabia has faced significant consequences due to the COVID-19 pandemic, one being due to the low crude oil prices, which led to decreased export crude oil revenues. The oil revenues accounted for 30%-40% of the country's GDP, and the disruptions in the supply chain of various operations due to the lockdown and containment measures to curb the virus have further exacerbated the situation. Although the electrical component's supply chains have been impacted by COVID-19, the power sector has been resilient, which has been relatively less affected as compared to demand shock felt in other countries. Factors such as the increasing investments in the infrastructure sector along with the plans to diminish the reliance on oil for power generation and to diversify the revenue streams are expected to drive the industrial electrical components in Saudi Arabia during the forecast period. However, increasing fiscal deficit compelled the government to reduce public expenditure and delay projects amid low oil prices and production cut, thereby restraining market growth.
- As Saudi Arabia is offering investment opportunities in sectors such as refining, mining, logistics, and energy through its National Industrial Development and Logistics Program (NIDLP), the demand for electric motos and starters segment in these industries is expected to dominate the market during the forecast period.
- The interconnection projects within the GCC countries, along with countries, such as Jordan and Iraq, plugging into the GCC's interconnection grid to meet their own supply shortfalls, are expected to create several opportunities for the market players in the coming years.
- With several government initiatives to increase the investments in the infrastructure projects, the industrial electrical components market in Saudi Arabia is expected to be driven during the forecast period.
