Press Release

Saudi Arabia Captive Power Generation Market to Record a Substantial CAGR of Around 7.18% During 2024-30

The Saudi Arabia Captive Power Generation Market is projected to grow at a CAGR of about 7.18% during the forecast period of 2024–30, cites MarkNtel Advisors in the recent research report. Saudi Arabia's industrial landscape extends beyond its robust construction sector to include dynamic and high-revenue-generating industries such as chemicals, petrochemicals, and cement. Both private entities and the government have undertaken significant initiatives to expand the industrial sector, recognizing its importance for domestic and regional development. However, a persistent challenge persists in the cement industry, with the National Cement Committee identifying a substantial gap between demand and supply.

To address this issue and achieve self-sufficiency, investments are being directed toward establishing new and advanced cement production facilities across the country, often located in remote areas lacking reliable access to the national grid. This underscores the critical role of captive power generation in supporting industrial expansion and self-sufficiency objectives. As new cement facilities emerge, there is an increasing demand for captive power generation solutions, particularly in remote regions. By meeting the energy needs of these emerging industrial hubs, captive power generation not only drives the growth of the cement sector but also contributes to broader economic diversification and sustainability goals set by the Saudi government. This underscores the importance of collaborative efforts between the energy and industrial sectors to enhance efficiency and resilience in Saudi Arabia's industrial ecosystem, further states the research report, “Saudi Arabia Captive Power Generation Market Analysis, 2024.”

Saudi Arabia Captive Power Generation Market Segmentation Analysis

Renewable Energy Sources to Lead the Market

Based on energy sources, the Captive Power Generation Market is categorized into Non-Renewable and Renewable types. In line with Saudi Arabia's ambitious objective of becoming a net zero-carbon economy, there has been a notable upsurge in the adoption of renewable and environmentally friendly energy sources. While the construction of solar captive power plants is currently ongoing, substantial growth is expected in the coming years. This transition to renewable energy is not only driving the expansion of existing local companies but also attracting new global entrants to establish themselves in the country.

This influx of international investment provides an opportunity for new captive power plants to embrace low-carbon energy alternatives, moving away from conventional sources that contribute significantly to climate change. As Saudi Arabia progresses toward its sustainability goals, the rapid expansion of renewable energy infrastructure signifies a significant shift toward a greener and more eco-conscious energy landscape.

Turbines/Engines to Dominate the Saudi Arabia Captive Power Generation Market

Turbines and engines play a pivotal role as foundational elements in power generation units, representing a substantial share of the market due to their crucial function in electricity production. Regular maintenance is imperative to ensure these systems operate at peak efficiency, optimizing electricity generation. Furthermore, there is a notable trend toward constructing complex combined power plants to address challenges related to energy shortages. By incorporating various types of turbines and engines, such as gas turbines, steam turbines, and internal combustion engines, into these facilities, operators can enhance operational flexibility and resilience, reducing disruptions to electricity production. This strategic approach not only strengthens the reliability and stability of the power grid but also highlights the increasing significance of turbines and engines in meeting the evolving needs of the energy sector.

With the market evolving, turbines and engines are expected to play an even larger role, driven by the necessity of achieving sustainable and efficient electricity generation amidst dynamic energy landscapes and rising global energy demands.

Saudi Arabia Captive Power Generation Market Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Wärtsilä Power Contracting Co. Ltd., Clarke Energy, Tractebel Engineering GmbH, General Electric, Siemens AG, Iberdrola, and others (Thermax, Holtec, etc.) are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry in the country?
4. How has the industry been evolving in terms of geography & service adoption?
5. How has the competition been shaping up in the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?