Saudi Arabia Switchgear Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.04 Billion |
| Market Size (2029) | USD 4.03 Billion |
| CAGR (2024 - 2029) | 5.80 % |
| Market Concentration | Medium |
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 Switchgear Market Analysis
The Saudi Arabia Switchgear Market size is estimated at USD 3.04 billion in 2024, and is expected to reach USD 4.03 billion by 2029, growing at a CAGR of 5.80% during the forecast period (2024-2029).
- Over the short term, the switchgear market will likely witness a boom due to the growing power demand in the commercial and industrial sectors, causing new power generation, transmission, and distribution projects to be tabled.
- However, SF6 gas used in insulating switchgear is a potent greenhouse gas with a global warming potential that may restrain the market.
- Nevertheless, the government of the Kingdom of Saudi Arabia is putting strenuous efforts into reducing their dependency on thermal energy sources (oil and natural gas) and increasing the renewables share in the power generation mix. They have set a target of 50% renewable power generation by 2030. The new power generation projects place ample opportunities for the switchgear market in the country.
Saudi Arabia Switchgear Market Trends
Gas Insulated Switchgear Hold Significant Market Share
- Gas-insulated switchgear (GIS) is expected to hold the most prominent Saudi Arabian switchgear market share. It is a switchgear made of high-voltage parts, like circuit breakers and disconnectors, covered in metal. A GIS is often used in small spaces like city buildings, offices, offshore platforms, additions, roofs, etc.
- Switchgear use is likely to increase because there are more rules to control carbon emissions, and more people are becoming aware of the need to use renewable energy sources like solar.
- Compared to air-insulated switchgear (AIS), they are more environment-friendly, reliable, and flexible. Also, the installation time and maintenance costs required for GIS are less than those of AIS. The significant applications of GIS are power transmission, integration of renewable power generation units into the grid, and railways.
- The primary factor driving the growth is the rising energy demand and the extension or replacement of old switchgear at substations that can drive the switchgear market's gas-insulated switchgear equipment. Gas-insulated switchgear is expected to become more popular because it saves space, needs little maintenance, and keeps out the elements.
- In the year 2022, the electricity generated in the country was around 401.6 TWh, an upward shift from 392.9 TWh in 2021. The government has also planned new power transmission and distribution projects to enhance and expand power transmission efficiency.
- For example, in March 2022, the Linxon company clinched three contracts worth USD 62 million to deliver power distribution network expansion projects for the Saudi Electricity Company. Linxon will extend the existing 230 kV GIS (Gas-Insulated Switchgear) to provide power supply to the South Ghawar Gas separation plant. It also includes the expansion of the existing Badar substation in Riyadh, the additional installation of reactors at Nafal, and the expansion and installation of bus reactors at Makkah and Jeddah North East substations.
- Furthermore, in March 2023, L&T bagged the contract to build a 380kV substation in Saudi Arabia. The contract includes the design and EPC of more than 400km of 380kV overhead transmission lines, a new 230kV gas-insulated substation, and associated automation and protection systems.
- Such developments are expected to have a propelling effect on the switchgear market in the country.
Renewable Power Generation Projects Expected to Drive the Market
- The country has yet to considerably achieve in the renewable power generation arena due to the dominance of conventional sources for energy needs, like crude oil and natural gas. The Saudi government has collaborated with umpteen private companies to expand the renewables portfolio in the electricity generation mix.
- In 2022, the share of renewable energy in the electricity generation mix was around 0.8 TWh (0.2%), far less than the desired levels. The country has set a target of 50% of renewables contribution in the electricity generation mix by 2030. Thus, many clean energy projects are queued up for the goal.
- For example, in December 2022, the Saudi government announced plans to execute ten new renewable energy projects in the country, with solar and wind energy sources. The country approved the ten projects in the 2023 budget; they together will produce 7GW of electricity. The project is a part of the country's goal to achieve 50% clean electricity by 2030.
- Furthermore, in January 2023, again the country launched five new solar and wind energy projects with a total capacity of 3,300 MW. It was implemented by the Saudi Power Procurement Company (SPPC), the principal buyer of electricity.
- Owing to such initiatives on behalf of the Saudi government, the switchgear market is anticipated to have robust growth in the evolving scene.
Saudi Arabia Switchgear Industry Overview
The Saudi Arabia Switchgear Market is moderately consolidated. Some of the key players (in no particular order) include TIEPCO, ABB Ltd., Hitachi Energy Ltd, Siemens AG, and Eaton Corporation Plc., among others.
Saudi Arabia Switchgear Market Leaders
ABB Ltd.
TIEPCO
Siemens AG
Eaton Corporation Plc.
Hitachi Energy Ltd.
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Switchgear Market News
- March 2023: Larsen & Toubro (L&T) announced that one of its key subsidiaries secured an order to build a 380kV substation in Saudi Arabia and the associated transmission interconnections. By implementing this order, Saudi Arabia's National Renewable Energy Programme seeks to increase the share of renewable energy generation in its energy mix.
- April 2022: Saudi Electricity Company (SEC) awarded Gas Insulated Switchgear (GIS) contracts to Hitachi Energy. The agreement includes designing, supplying, supervising, installing, testing, and commissioning 380kV and 132kV of gas-insulated switchgear for various substations like Afif BSP, Al Baha BSP, and Uwaiqilah BSP.
Saudi Arabia Switchgear Market Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Growing Power Demand from the Commercial and Industrial Sectors
4.5.2 Restraints
4.5.2.1 Stringent Environmental and Safety Regulations
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Voltage
5.1.1 Low Voltage
5.1.2 Medium Voltage
5.1.3 High Voltage
5.2 Insulation
5.2.1 Gas-Insulated Switchgear
5.2.2 Air-Insulated Switchgear
5.3 End-User Industry
5.3.1 Residential
5.3.2 Commercial
5.3.3 Industrial
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 ABB Ltd.
6.4.2 TIEPCO
6.4.3 Siemens AG
6.4.4 Eaton Corporation Plc.
6.4.5 Hitachi Energy Ltd.
6.4.6 BMC Manufacturing
6.4.7 META Switchgear Co.
6.4.8 Havells Group
6.4.9 Schneider Electric SE
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 New Power Generation Projects
Saudi Arabia Switchgear Industry Segmentation
Switchgear is a piece of equipment that is used to protect circuits from fault currents and control the way power is sent to larger areas. Voltage, insulation, and end-user are the key market segments for switchgear in Saudi Arabia. The Saudi Arabia Switchgear Market is segmented by Voltage (Low-Voltage, Medium-Voltage, High Voltage), Insulation (Gas-Insulated Switchgear, Air-Insulated Switchgear), and End-User Industry (Commercial, Residential, and Industrial). The report offers the market size and forecasts for the switchgear market in terms of revenue (USD) for all the above segments.
| Voltage | |
| Low Voltage | |
| Medium Voltage | |
| High Voltage |
| Insulation | |
| Gas-Insulated Switchgear | |
| Air-Insulated Switchgear |
| End-User Industry | |
| Residential | |
| Commercial | |
| Industrial |
Saudi Arabia Switchgear Market Market Research Faqs
How big is the Saudi Arabia Switchgear Market?
The Saudi Arabia Switchgear Market size is expected to reach USD 3.04 billion in 2024 and grow at a CAGR of 5.80% to reach USD 4.03 billion by 2029.
What is the current Saudi Arabia Switchgear Market size?
In 2024, the Saudi Arabia Switchgear Market size is expected to reach USD 3.04 billion.
Who are the key players in Saudi Arabia Switchgear Market?
ABB Ltd., TIEPCO, Siemens AG, Eaton Corporation Plc. and Hitachi Energy Ltd. are the major companies operating in the Saudi Arabia Switchgear Market.
What years does this Saudi Arabia Switchgear Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Switchgear Market size was estimated at USD 2.87 billion. The report covers the Saudi Arabia Switchgear Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Switchgear Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Switchgear Market Industry Report
Statistics for the 2024 Saudi Arabia Switchgear market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Switchgear analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
