Saudi Arabia Solar Energy Market Size (2024 - 2029)

The market size of the Saudi Arabian solar energy sector is anticipated to experience significant growth, despite the temporary setback due to the COVID-19 pandemic. This growth is driven by favorable government policies, an increasing push to meet power demand through solar energy, and reduced dependency on fossil fuels. However, the rise in adoption of other clean power sources and the availability of fossil fuels may hinder the expansion of the solar energy market. The National Renewable Energy Program in Saudi Arabia, which aims to substantially increase solar energy capacity, is expected to present considerable opportunities for the market in the near future.

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Market Size of Saudi Arabia Solar Energy Industry

Saudi Arabia Solar Energy Market - Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 51.00 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order
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Saudi Arabia Solar Energy Market Analysis

The Saudi Arabian solar energy market is expected to reach 1,028 MW by the end of the current year, and it is projected to register a CAGR of 51% during the forecast period.

Although the COVID-19 pandemic affected the market studied in 2020, it has been recovering and reached pre-pandemic levels. Over the forecast period, factors such as supportive government policies, increasing efforts to meet power demand using solar energy, and decreased fossil-fuel dependency are expected to drive the market's growth. However, the increasing adoption of alternate clean power sources, such as wind, and the availability of fossil fuels are expected to restrain the growth of the solar energy market during the forecast period.

Saudi Arabia's National Renewable Energy Program aims to achieve 40 GW of solar energy installed capacity by 2030. This is expected to create significant opportunities for the market in the near future.

Saudi Arabia Solar Energy Industry Segmentation

Solar energy is a type of renewable energy where solar panels are used to generate electricity. Solar panels deployed on rooftops or mounted on the grounds are utilized effectively by energy consumers. 

Saudi Arabia's solar energy market is segmented by type into solar photovoltaic (PV) and concentrated solar energy (CSP). For each segment, the market sizing and forecasts have been done based on the installed capacity (MW).

Saudi Arabia Solar Energy Market Size Summary

The Saudi Arabian solar energy market is on an upward trajectory, with expectations for significant growth in the coming years. This growth is driven by a range of factors, including supportive government policies, increasing efforts to meet power demand using solar energy, and a decrease in fossil-fuel dependency. However, the market faces challenges from the increasing adoption of alternate clean power sources, such as wind, and the availability of fossil fuels. Despite these challenges, the market is expected to continue growing, thanks to the Saudi Arabian National Renewable Energy Program's ambitious goal of achieving 40 GW of solar energy installed capacity by 2030. The market is dominated by solar photovoltaic (PV) type energy, thanks to Saudi Arabia's unique geographical and climatic location which makes renewable energy sources economically attractive. The declining costs of solar modules and the versatility of these systems for various applications, like electricity generation and water heating, further support the dominance of solar PV in the market. The Saudi Arabian government is reinforcing the country's commitment to renewable energy through initiatives like the Saudi Green Initiative and Vision 2030, which aim to increase the share of renewable energy in the country's primary energy mix. Large-scale projects and increasing government initiatives are expected to drive growth in the solar PV segment during the forecast period.

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Saudi Arabia Solar Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Solar Energy Installed Capacity and Forecast in MW, till 2027

    3. 1.3 Renewable Energy Mix, 2020

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

      2. 1.6.2 Restraints

    7. 1.7 Supply Chain Analysis

    8. 1.8 PESTLE Analysis

  2. 2. MARKET SEGMENTATION - BY TYPE

    1. 2.1 Solar Photovoltaic (PV)

    2. 2.2 Concentrated Solar Power (CSP)

Saudi Arabia Solar Energy Market Size FAQs

The Saudi Arabia Solar Energy Market is projected to register a CAGR of greater than 51% during the forecast period (2024-2029)

Alfanar Group, Abu Dhabi Future Energy Company (Masdar), EDF Renewables, Saudi Electricity Company and ACWA Power Company are the major companies operating in the Saudi Arabia Solar Energy Market.

Solar Energy in Saudi Arabia Market Report Snapshots

Solar Energy in Saudi Arabia Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)