Increasing demand for energy due to high electricity consumption coupled with the need for reducing carbon footprints in the Middle East in one the key factor contributing to the demand for smart grid solutions in the Middle East region. Moreover, the escalating investments by the government in the power sector to reduce energy demand are resulting in the growth of smart grid solutions in the region. The government in Saudi Arabia announced to invest USD 3.19 Bn in smart grid projects in 2016. Also, the smart metering project in Saudi Arabia worth USD 2.5 Bn that aims to deploy 12 million smart meters in Saudi Arabia till 2025, would help the electricity provide to improve network planning and grid reliability
Furthermore, the rapid industrialization across the region due to upcoming mega projects such as “Dubai expo 2020”, FIFA World Cup” etc. coupled with commercialization across the region is further augmenting the need for smart grids.
Middle East Smart Grid Market Outlook
According to MarkNtel Advisors’ research report “Middle East Smart Grid Market Analysis, 2020”, the market size of the smart grid in the Middle East region is expected to grow at a CAGR of around 29% during 2020-25. The market size of smart grids is escalating due to ongoing various smart meter projects which are resulting in the demand for smart grids also. In 2018, Dubai Electricity and Water Authority announced to install 2, 70,000 smart meters under ongoing project “Smart Applications via Smart Grid and Meters".
Furthermore, growing awareness among end-users about the benefits of smart technology such as low energy consumption, money-saving, etc. is augmenting the growth of the smart grid market in the Middle East region.
UAE and Saudi Arabia to Grab Lion’s Share in Forthcoming year
In 2019, UAE and Saudi Arabia grabbed the major market share in the Middle East smart grid market. The key factor for the growth of the market share of the both the countries is the rapid commercialization and industrialization due to which the energy consumption is on the rise. Therefore, creating a demand for smart grid solutions. Furthermore, the UAE’s government’s initiative for smart grid infrastructures such as the launch of the smart grid station in Al Ruwayya is one of the key factors contributing to the market growth of smart grid solutions.
Software and Services to Dominated in Forthcoming years
Based on the components, the software and services segment captured the majority of market share in 2019 and is expected to dominate in the forecast period as well due to the need for advanced metering infrastructure, grid network management, smart gird distribution, etc. Also, the need for Consulting, Deployment& Integration and maintenance for the smart grids coupled with the growing concern of data security and privacy would further increase the market share of software and serves segment. However, the government’s strategy for the deployment of smart meters would further help the hardware segment to grow in the Middle East smart grid market.
In 2019, the AMI meter grabbed the major market share in the Hardware segment due to the deployment on a very large scale in the region. In the service segment, deployment and integration services would capture the largest market share in the region as these services would help in the integration of various modules of utility smart grid operations.
The commercial sectors are expected to grab the major market share owing to the increasing energy consumption. Moreover, the need for cost savings and reducing carbon footprints from the commercial sector would lead to the increasing market share in the Middle East smart grid, as revealed by MarkNtel Advisors’ research report “Middle East Smart Grid Market Analysis, 2020”.
According to MarkNtel Advisors’, the market of the Middle East grid is in nascent age. The key players with a considerable market share in the market are GE, ABB, Siemens, Schneider Electric, Itron, Alstom, Landis+ Gyr, etc. The companies are doing strategic alliances, offering new solutions to gain a competitive edge in the industry. For instance: In 2019, GE launched a smart grid lab in Qatar. Also, Siemens opened a “Digital Grid Center” in Abu Dhabi for the research and development in the energy sector. Furthermore, Landis+Gyr, energy management solution provider and Ericsson, telecom and service provider partnered to empower Smart Metering and Smart Grid projects in the Middle East.
“Middle East Smart Grid Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the industry potential, key factors impacting sales and purchase decisions, hotspots, and opportunities available for smart grid providers across the region. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the formulation of Go to Market Strategies and identifying the blue ocean for its offerings.
1. By Components (Hardware, Software, Services)
2. By Hardware (AMI Meter, Sensors, Others),
3. By Software (Advanced Metering Infrastructure, Grid Distribution, Grid Asset, Grid Network Management, Grid Security, Substation Automation, Billing & CIS)
4. By Services (Consulting, Deployment and Integration, Support and Maintenance)
5. By Application (Generation, Transmission, Distribution, Consumption/End Use)
6. By Countries (UAE, Saudi Arabia, Qatar, Kuwait, Turkey, Iran)
7. By Company (GE, ABB, Siemens, Schneider Electric, Itron, Alstom, Landis+ Gyr, Honeywell, Oracle, IBM, etc)
Key questions answered in the study:
1. What are the current and future market trends of the Middle East Smart Grid industry?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. How the competition has been shaping across the countries followed by their comparative factorial indexing?
4. What are the key growth drivers and challenges for Middle East Smart Grid industry?
5. What are the customer orientation, purchase behavior, and expectations from the Middle East Smart Grid firms across various countries?