Saudi Arabia Green Energy Market Overview
Market Size in 2024: USD 1.02 Billion
Market Size in 2033: USD 2.24 Billion
Market Growth Rate 2025-2033: 9.10%
According to IMARC Group's latest research publication, "Saudi Arabia Green Energy Market Size, Share, Trends and Forecast by Type, End-Users, and Region, 2025-2033", The Saudi Arabia green energy market size reached USD 1.02 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2.24 Billion by 2033, exhibiting a growth rate (CAGR) of 9.10% during 2025-2033.
Growth Factors in the Saudi Arabia Green Energy Market
- Government Vision and Investment Drive
Saudi Arabia’s green energy industry is gaining speed thanks to the government’s ambitious Vision 2030, which targets generating at least half of the country’s electricity from renewable sources. The National Renewable Energy Program (NREP) provides a clear roadmap, and recent government initiatives have attracted over $8.3 billion for seven major solar and wind projects, delivering a combined 15,000MW of new capacity. These projects are not just numbers on paper—they’re actively transforming the energy landscape. With significant backing from public and private sectors, the support includes streamlined regulations, powerful incentives, and direct partnerships that are drawing in international players while giving local companies the confidence to take bigger green leaps.
- Falling Technology Costs and Energy Independence
Another big booster for the green energy market is the rapid drop in renewable technology costs, particularly in solar and wind. Solar power prices have plummeted by around 90%, making it not only environmentally but also economically irresistible. Saudi Arabia's sunny climate is a massive advantage, making solar projects like the Sakaka plant—which alone powers 44,000 homes—more viable than ever. The government’s drive for energy diversification also means renewables are becoming central to reaching the right energy mix and reducing the Kingdom’s traditional reliance on oil. With energy demands rising and oil prices fluctuating, clean energy is the strategic path to reliable, long-term economic growth.
- Global Sustainability Commitments and Innovation
Saudi Arabia’s commitment to global climate goals is turbocharging its green innovation. The Saudi Green Initiative has led to the rollout of 17 renewable projects with a combined 13.76GW capacity, enabling annual savings of 23.1 million tons of CO2 equivalent. Groundbreaking projects—such as the world’s largest clean hydrogen hub with a targeted production of 250,000 tons each year—underscore the Kingdom’s ambitions. Add to this the development of large-scale carbon capture and storage, and you have an ecosystem where green energy innovation is thriving. These efforts position Saudi Arabia as a serious player in the global energy transition and an attractive destination for ESG-focused investments.
Key Trends in the Saudi Arabia Green Energy Market
- Rapid Expansion of Solar and Wind Power
The boom in Saudi Arabia’s solar and wind sectors is front and center. Mega projects like Al Shuaibah’s 2GW solar plant and the 1.5GW Sudair solar site are putting the Kingdom on the map for clean power production. Wind projects, including the Dumat Al Jandal wind farm, are also making waves with their record-setting size and low generation costs. In total, Saudi Arabia has already signed power purchase agreements covering 38GW of renewable capacity, with 10.21GW now connected to the national grid. This explosive project pipeline reflects both the urgency and momentum behind the country’s green transformation, with most new capacity devoted to clean, utility-scale solar and wind.
- Green Hydrogen and Carbon Management Leadership
Saudi Arabia isn’t stopping at just producing green electricity. It’s also charging ahead in the green hydrogen space, aiming to be a global hub for this clean fuel. The Neom green hydrogen project is designed to produce massive volumes for both domestic use and export, while investments in carbon capture, usage, and storage are helping to address emissions from legacy industries. The first phase of the planned carbon capture hub in Jubail already boasts 9 million tons of annual capacity. These innovations are creating new value chains, opening up future-ready revenues, and positioning Saudi Arabia as a bold, solutions-oriented force in international green energy.
- Emphasis on Local Supply Chain and Industrial Growth
A key trend sweeping the Saudi green energy sector is the focus on building a robust domestic supply chain and driving industrial innovation. Local content requirements for major projects are creating new jobs and developing skills in engineering, manufacturing, and clean tech services. The government is pushing for more Saudi-made solar panels, wind turbines, and batteries, ensuring that the economic benefits of the green transition stay at home. Partnerships between local firms, like ACWA Power and national funds, as well as global players, are boosting technology transfers and fostering an industrial ecosystem that can serve regional and international markets.
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Saudi Arabia Green Energy Industry Segmentation:
The report has segmented the market into the following categories:
Type Insights:
- Solar Energy
- Wind Energy
- Hydroelectric Energy
- Bio Energy
- Others
End-Users Insights:
- Residential
- Commercial
- Industrial
Regional Analysis:
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Future Outlook
Saudi Arabia’s green energy sector looks set for a vibrant, game-changing future. With more than $8 billion in recent deals and a goal of 58.7GW of renewable electricity capacity within the next few years, momentum is unmistakable. The sector is rapidly diversifying, powered by ambitious solar, wind, and green hydrogen initiatives, as well as supportive policy frameworks. Local industry is tapping into these opportunities for skills development, job creation, and technology adoption. As Saudi Arabia positions itself as a clean energy leader, expect innovation, new partnerships, and even greater integration with global green supply chains—making the Kingdom a compelling environment for investors and innovators alike.
Research Methodology:
The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.
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