Saudi Arabia Smart Grid Market by Solution (Advanced Metering Infrastructure, Smart Grid Distribution Management, Smart Grid Communication, Grid Asset Management, Geographic Information System, Billing and Customer Information System), By Services (Deployment & Integration, Consulting, Support & Maintenance), By Region, Competition Forecast & Opportunities, 2018-2028

Saudi Arabia Smart Grid market

Government Projects Driving the Growth for Saudi Arabia Smart Grid Market

Advanced Metering Infrastructure (AMI) or Smart Metering, an integrated system of intelligent meters, communication networks, and data management systems, is the cornerstone of smart grids and is expected to grow significantly. In 2019, Saudi Electricity Co. won USD 2.5 billion project to install 10 million smart meters across Saudi Arabia as part of a broader electricity distribution improvement plan. Saudi Arabia witnessed a significant increase in electricity generation in 2018 and is expected to increase during the forecast period. From 333 TWh in 2014 to 383 TWh in 2018, the demand for smart grids and smart meters is also increasing, driven by new power plants and new grids. Saudi Arabia is investing in pre-metering infrastructure as efforts intensify to modernize the power grid and reduce transmission and distribution losses. This is anticipated to drive the AMI market during the forecast period. Smart grids can collect much more data than manual energy meter reading systems. This allows the use of data analysis techniques and creation of highly realistic consumption forecasts. This allows energy suppliers to better match production with consumption (balance) and reduce energy surpluses.

Another important benefit of the remote administration system is more accurate invoices. It reduces the cost of older systems with manual power metering, as it always reflects actual monthly consumption rather than estimates. In addition to remote access to information about installations, problems are easier to diagnose, solutions can be implemented faster, thereby improving customer service. Today, customers need to notify businesses and take required actions. However, with remote management, the system itself automatically reports incidents to the utility company, allowing users to respond more quickly.

Latest Developments Fueling the Market Growth in Saudi Arabia Smart Grid Market

ZIV Automation and its parent company, Alfanar, have delivered approximately 550,000 smart meters for the smart grid implementation of the Saudi Electric Power Company (SEC), in 2021. In addition to smart meters, ZIV Automation also provided dual communication technology, PLC-PRIME 1.4 FCC and NB-IoT system.

In the year 2023, the Saudi power company has signed two contracts totaling USD720 million with Chinese and Saudi companies for a project to supply and install 60,000 smart devices in the kingdom's electricity grid. The project also includes connecting the country's electricity distribution network to an advanced control center over the next two years, as the SEC intends to automate and develop the electrical network in line with its digital transformation strategy.

In 2020, Saudi Electricity Company signed a USD1.1 billion contract with State Grid Corporation of China (SGCC) to deliver 10 million smart meters in Saudi Arabia. The project involved the installation and commissioning of 10 million smart meters across the country.

Download Free Sample Report

Market Segmentation

Saudi Arabia Smart Grid

Market player

Major market players in the