Saudi Arabia Energy Management Market Research Report: Forecast (2026-2030)

Market Insights & Analysis: Saudi Arabia Energy Management Market (2026-30):

The Saudi Arabia Energy Management Market size is valued at around USD 298 million in 2025 and is expected to reach USD 578 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 11.67% during the forecast period, i.e., 2026-30. The Saudi Arabia Energy Management Market is significantly growing due to several growth factors, including rising efforts by the Saudi government to promote energy efficiency, the growing adoption of renewable energy, and the integration of artificial intelligence with highly efficient energy systems. One of the most prominent growth factors is the rising development of smart infrastructure in the country, including smart cities that consume high energy, which increases the market size & volume. For instance, the NEOM, Qiddiya, Alnama Smart City, Oxagon, Trojena, etc., projects are increasing the market growth, as these are highly energy-intensive projects in Saudi Arabia. Also, the Saudi Standards, Metrology and Quality Organization (SASO) invested about USD12,000 in implementing an EMS that reduced energy consumption up to 38% and saved approximately USD3.7 million, supporting market growth & expansion.

Additionally, the rising number of data centers in the country is contributing to the market growth, as it is increasing the demand for energy monitoring and management solutions. Moreover, the rising adoption of renewable sources of energy includes upcoming projects for solar power plants, green hydrogen production, and many more, which are contributing to the potential market growth. Furthermore, the market landscape is changing due to the integration of technological innovations, such as artificial intelligence, in energy management solutions, which is increasing the efficiency and accuracy of these systems. However, the shortage of skilled labor and high deployment costs of these systems are hindering the smooth market growth trajectory.

Saudi Arabia Energy Management Market Scope:

Saudi Arabia Energy Management Market Driver:

Government Incentives for Energy Efficiency – The market growth is primarily driven by the rising support of the Saudi government through significant investments and implementation of various policies to promote energy efficiency in Saudi Arabia. For instance, the Ministry of Energy, the Saudi Energy Efficiency Center (SEEC) & TARSHID launched the Saudi Green Initiative (SGI) to increase energy efficiency in the electricity and water desalination projects, which is actively utilizing efficient energy management solutions, contributing to the market growth & expansion.

Additionally, as of 2024, the country’s government has installed about 10 million smart meters across the country to optimally utilize, monitor, and analyze the energy consumption. These smart meters are installed by Alfanar and the State Grid Corporation of China, invested by the Saudi government, and each has installed about 5 million smart meters in the country to give a cumulative quantity of 10 million smart meters. These factors are actively driving the growth of the Saudi Arabian Energy Management Industry.

Saudi Arabia Energy Management Market Opportunity:

Rapid Adoption of Renewable Energy Offering Ample Growth Opportunities – The rapid expansion of renewable energy in the country to achieve the sustainability goals is offering lucrative growth opportunities in this market. This is due to the rising adoption of solar panels and wind energy in the country, which further needs to be conserved, thus increasing the demand for effective energy management solutions to increase energy efficiency. For instance, the Sudair Solar PV Plant (Riyadh) aims to provide about 1.5 GW of solar power, which is significantly high, thus increasing the demand for energy management solutions.

Additionally, the government-led Ar Rass 2 Solar PV Park in the Qassim region of the country is expected to have a 2GW solar project, which is currently in process, greatly demanding highly efficient energy management systems to conserve energy. Similarly, the NEOM Green Hydrogen project, in collaboration with ACWA Power and Air Products, plans to produce about 600 tons of green hydrogen per day using high-energy methods, thus increasing the demand for the energy management market in the country. These kinds of efforts are contributing to the potential growth of this market.

Saudi Arabia Energy Management Market Challenge:

High Cost & Limited Skilled Workforce Hindering Market Growth – The market growth is hindered by the high cost of deployment of these energy management systems in Saudi Arabia due to the deployment of smart meters, expensive software, advanced metering infrastructure, data concentrators, and many more. Additionally, the EMS software requires customization, licensing fees, and integration with prior systems, which increase the overall installation costs. Moreover, the frequent system upgrades and continuous monitoring further increase the maintenance costs, thus hindering the market growth. For instance, to install a single unit of a smart meter in Saudi Arabia costs around USD250, with additional maintenance costs.

Furthermore, the country is significantly increasing its energy sector; however, it is lacking in a skilled workforce. For instance, the country requires about 90,000 to 120,000 trained professionals to meet the country’s rising demand, which the country is currently lacking, thus restraining the smooth progression of this market.

Saudi Arabia Energy Management Market Trend:

Integration of Advanced Technologies – The market dynamics are changing due to the incorporation of advanced technologies like AI, deep learning, IoT, etc., in the energy management systems of Saudi Arabia. This integration enables energy optimization more efficiently by analyzing real-time and predictive data with zero errors and high precision. Several major players, such as AEMACO, Quantum, Noda AI, Dsquare Global, Schneider Electric, Siemens Energy, and many more, have proactively started manufacturing AI-powered energy management software and devices in the country to increase the performance of energy management tools. For instance, in 2024, Schneider Electric launched an AI-powered home energy system for its Wiser Home energy management application in Saudi Arabia to increase smart energy optimization.

Additionally, in 2025, a Saudi-based company called Quantum Technologies received about USD7 million to increase its AI-integrated devices for energy management. Similarly, Dsquare Global is also providing AI-based smart energy management systems across Saudi Arabia, thus transforming the growth trajectory of this market.

Saudi Arabia Energy Management Market (2026-30): Segmentation Analysis

The Saudi Arabia Energy Management Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2026–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Product Type:

• Industrial Energy Management Systems (IEMS)
• Building Energy Management Systems (BEMS)
• Home Energy Management Systems (HEMS)

Among these, the industrial energy management systems (IEMS) hold the largest market share, around 80%. The dominance is due to the high energy consumption by the industrial sector in Saudi Arabia, which requires highly efficient energy management systems for energy optimization. For instance, as per the SEEC, the industrial sector, mainly including the manufacturing industry, accounts for more than 46% of the total energy consumption due to being an energy-intensive sector, which requires substantial optimization. For instance, as of 2024, the annual production capacity of the petrochemical industry in Saudi Arabia is more than 116 million tons, which is further expected to increase to 140 million tons by the end of 2030. Similarly, the oil & gas refineries have a capacity to produce approximately 3 million barrels per day.

Consequently, the manufacturing facilities related to these industries in Saudi Arabia are actively implementing energy management tools and devices for energy optimization in their organizations. For instance, the Qassim Cement Company is currently implementing EMS under ISO 50001 standards. Similarly, in 2024, Sahara International Petrochemical Company (Sipchem) completed the implementation of an efficient industrial energy management system, contributing to the dominance of industrial energy management systems based on product type.

Based on Deployment Type:

• On-premises
• Cloud-based

Between the two, the cloud-based deployment type is leading this market, accounting for more than 55% market share. This is leading due to the benefits of cloud-based deployment over the on-premises deployment of energy management systems. This includes high scalability, low latency, and high cost-effectiveness, as cloud-based deployment can be done remotely and does not require any hardware or costly infrastructure for operations. Such deployment is supported by the rising expansion of data centers in the country. As of 2025, Saudi Arabia has more than 50 data centers, along with 12 colocation facilities suitable for cloud providers.

Additionally, Saudi Arabia received more than USD5 billion to establish a net-zero AI data center in Neom's Oxagon hub in the country to increase the number of data centers in Saudi Arabia, which further facilitates the deployment of cloud-based energy management solutions. Moreover, one of the university hospitals in Saudi Arabia is planning to install the Intesis AC Cloud Control gateways, which will centrally manage air conditioning to reduce 20% costs, showing the rising demand for cloud-based energy management systems, thus contributing to their dominance in this growing & expanding industry.

Top Saudi Arabia Energy Management Market Companies: Players, Analysis & Future Outlook

The leading energy management players in the Saudi Arabia Industry include ACWA Power, Schneider Electric SE, Honeywell International Inc., Siemens AG, ABB Ltd., Johnson Controls International PLC, Alfanar, BYD, Sungrow, Envision Energy, Cisco Systems, Inc., IBM Corporation, and Others.

Saudi Arabia Energy Management Industry Recent Development:

• 2025: ABB Ltd. introduced the ABB Smart Energy Management System (EMS), a solution designed to optimize home energy use, reduce costs, and maximize efficiency.
• 2025: Schneider Electric SE introduced Lauritz Knudsen, a low-voltage electrical distribution and automation solution launched in Saudi Arabia. It ensures safe, efficient power distribution, real-time monitoring, and smart control of buildings, industries, and infrastructure.

Gain a Competitive Edge with Our Saudi Arabia Energy Management Market Report

1. Saudi Arabia Energy Management Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Saudi Arabia Energy Management Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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