Report Overview
The expansion of smart electricity grid infrastructure, a growing focus on infrastructure and renewable energy sources, and a rising demand for electricity are expected to drive Saudi Arabia Switchgear Market during the forecast period between 2025 and 2033.
Saudi Arabia Switchgear Market - Industry Trends & Forecast Report, 2033
Saudi Arabia Switchgear Market size was estimated at USD 1.5 billion in 2024. During the forecast period between 2025 and 2033, Saudi Arabia Switchgear Market size is projected to grow at a CAGR of 7.2% reaching a value of USD 2.4 billion by 2033. Prominent drivers of the market include industrial expansion, renewable energy adoption, grid modernization, and increasing investments in data centers. The rising demand for electric vehicle charging infrastructure and stricter safety regulations further bolster growth. Additionally, advancements in eco-friendly technologies, such as dry air insulated switchgear, are gaining traction, aligning with sustainability goals. For instance, Mitsubishi Electric Corporation received an order for its 84kV dry air insulated switchgear in July 2024, highlighting the shift toward carbon-neutral solutions. Expansion in the oil and gas sector and the rise of hydrogen and ammonia-based projects also open new avenues for specialized switchgear solutions, ensuring operational reliability and energy efficiency in critical applications.
Saudi Arabia Switchgear Market
Switchgear - Overview
Switchgear refers to a collection of electrical devices used to control, protect, and isolate electrical equipment in power systems. It includes components such as circuit breakers, switches, fuses, and relays, designed to ensure safe and efficient operation of electrical networks. Switchgear plays a critical role in managing power distribution, preventing electrical overloads or faults, and safeguarding equipment and personnel. It is widely used across industries, utilities, and infrastructure for applications ranging from residential power distribution to large-scale industrial and renewable energy systems.
Saudi Arabia Switchgear Market
Growth Drivers
Growing Focus on Infrastructure and Renewable Energy Sources
The growth of Saudi Arabia Switchgear Market is driven by the government?s significant investments in modernizing power infrastructure and integrating renewable energy sources. Key initiatives, such as the deployment of smart grids and smart metering systems under the guidance of the Electricity & Cogeneration Regulatory Authority (ECRA), address the challenges of the Kingdom?s electricity industry while leveraging global best practices. With strategic and technical support from CESI, the roadmap for implementing smart metering technologies ensures an efficient and phased rollout across the region. Government-led infrastructure projects and the increasing adoption of renewable energy solutions have further catalyzed the demand for high-voltage (HV) switchgear. The Saudi Electricity Company (SEC) has optimized procurement strategies to enhance efficiency, fostering a robust switchgear ecosystem. International suppliers, including Hitachi Energy, Hyundai, and Siemens Energy, play a crucial role in supporting grid modernization and renewable energy integration with advanced technologies. As the Kingdom continues to prioritize sustainable energy goals and infrastructure upgrades, the demand for reliable and innovative switchgear solutions is expected to rise significantly.
Challenges
Downturn in Construction Industries
Saudi Arabia Switchgear Market faces challenges due to the slowdown in construction activities, driven by economic uncertainties, fluctuating oil prices, and reduced government spending on infrastructure projects. Construction delays and cancellations have directly impacted the demand for switchgear, as fewer residential, commercial, and industrial projects are initiated. Additionally, supply chain disruptions and rising material costs have further hindered market expansion. This downturn affects not only local manufacturers but also international suppliers relying on the region?s construction growth. As construction industries are key drivers of switchgear demand, prolonged stagnation poses significant restraints on the market?s overall growth trajectory.
Impact of Escalating Geopolitical Tensions on Saudi Arabia Switchgear Market
Escalating geopolitical tensions could significantly impact the growth of Saudi Arabia Switchgear Market by affecting supply chains, trade flows, and infrastructure investments. Heightened regional instability may delay key power infrastructure projects due to shifting government priorities and reduced foreign investments. Restrictions on importing advanced switchgear technologies and components from international suppliers could slow down market growth while rising raw material costs add financial pressure on local manufacturers. Additionally, uncertainties in energy markets can deter progress in renewable energy initiatives, further curbing demand for modern switchgear solutions. These challenges collectively pose significant risks to the market's stability and long-term growth prospects.
Saudi Arabia Switchgear Market
Segmental Coverage
Saudi Arabia Switchgear Market - By Installation
Based on installation, Saudi Arabia Switchgear Market is bifurcated into Indoor and Outdoor segments. The outdoor segment holds a higher share in Saudi Arabia Switchgear Market by installation, due to its suitability for the Kingdom's harsh climate, characterized by extreme heat, sandstorms, and low humidity. Outdoor switchgear is designed to endure these conditions, making it a practical and durable choice. Additionally, the availability of outdoor space in industrial zones and remote areas makes such installations cost-effective. Saudi Arabia's large-scale infrastructure projects, including smart cities, industrial complexes, and transportation networks, further drive the demand for outdoor switchgear, particularly for high-voltage applications like electrical substations and power transmission. These factors collectively enhance the segment's prominence in the market.
Saudi Arabia Switchgear Market Size
Saudi Arabia Switchgear Market - By Insulation Type
Saudi Arabia Switchgear Market by insulation type is divided into Air Insulated, Gas Insulated, and other segments. The gas insulated segment is expected to hold the highest share in Saudi Arabia Switchgear Market by insulation type over the forecast period. It is primarily due to its compact design, reliability, and environmental benefits. Featuring high-voltage components encased in metal, GIS is ideal for confined spaces like city buildings, offshore platforms, and extensions. Compared to air-insulated switchgear (AIS), GIS offers reduced installation time, lower maintenance costs, and better resilience to environmental factors. The growing emphasis on renewable energy, stricter carbon emission regulations, and increasing energy demand are driving GIS adoption, with key applications in power transmission, renewable energy integration, and railways. Saudi Arabia's government is investing heavily in power infrastructure, further boosting GIS demand. For example, in 2022, Linxon secured contracts worth USD 62 million to expand 230kV GIS systems for the Saudi Electricity Company, including projects at South Ghawar and key substations in Riyadh and Makkah. Additionally, in 2023, L&T was awarded contracts to construct a 380kV substation and 230kV GIS systems along with extensive transmission lines. These projects underscore the rising preference for GIS in modernizing power transmission and distribution networks, cementing its dominance in the market.
Saudi Arabia Switchgear Market Share
Saudi Arabia Switchgear Market - By Voltage
Based on voltage, Saudi Arabia Switchgear Market is divided into Low, Medium, and High segments. The high voltage segment leads Saudi Arabia Switchgear Market. The Kingdom is modernizing its electrical grid, and high-voltage switchgear plays a crucial role in transmitting electricity over long distances and connecting power generation sources to the grid efficiently. With significant investments in renewable energy, especially solar and wind power, high-voltage switchgear is vital for integrating these sources into the grid, particularly for large-scale solar and wind farms. Additionally, high-voltage switchgear is commonly used in mining operations to power heavy machinery and equipment. The growth of the mining sector further drives the demand for high-voltage solutions, with manufacturers providing customized switchgears to meet the specific needs of large scale projects and industries.
Saudi Arabia Switchgear Market Demand
Saudi Arabia Switchgear Market - By Current
Based on current, Saudi Arabia Switchgear Market is split into AC and DC segments.
Saudi Arabia Switchgear Market - By End User
On the basis of end user, Saudi Arabia Switchgear Market is divided into Transmission & Distribution Utilities, Industries, Commercial & Residential, and other segments. Over the forecast period, the industries segment is expected to record the fastest growth rate by end user. It is primarily driven by the country's push for industrialization and economic diversification. Sectors such as petrochemicals, manufacturing, mining, and heavy machinery production are expanding, leading to increased demand for switchgear to support their electrical distribution needs. Industries with high energy demands rely on reliable switchgear systems for stable power supply. The growth of the mining industry, which requires switchgear for heavy machinery and equipment, further boosts market demand. Additionally, the development of industrial zones and complexes, along with a focus on energy efficiency, contributes to the rising need for advanced switchgear solutions.
Competitive Landscape
Major players operating in Saudi Arabia Switchgear Market include ABB Ltd, Eaton Corporation Plc, Siemens AG, Hitachi Energy Ltd, TIEPCO (Tabuk Industrial & Electrical Products Co.), META Switchgear Co., Alfanar Group, RFPB (Riyadh Factory for Power & Building), Gulf Electrical Distribution Apparatuses Co. Ltd. (GEDAC Electric), and Musaid Switchgear Factory Company Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
Recent Developments
In November 2024 - Linxon secured a SAR 400-million EPC contract to build a 380 kV turnkey substation at the Taibah Power Plant in Madinah, Saudi Arabia. The project, which includes the installation of advanced switchgear, is part of Saudi Arabia's efforts to improve grid reliability and address the rising energy demand.
In March 2024 - JERA and TAQA signed a Power and Steam Purchase Agreement with SATORP to develop a cogeneration plant at the Amiral petrochemical complex in Jubail, Saudi Arabia. The facility will feature gas-insulated switchgear interconnections and accommodate future carbon capture and hydrogen co-firing capabilities.
Key Players
ABB Ltd, Eaton Corporation Plc, Siemens AG, Hitachi Energy Ltd, TIEPCO (Tabuk Industrial & Electrical Products Co.), META Switchgear Co., Alfanar Group, RFPB (Riyadh Factory for Power & Building), Gulf Electrical Distribution Apparatuses Co. Ltd (GEDAC Electric), Musaid Switchgear Factory Company Ltd
By Installation
Indoor
Outdoor
By Insulation Type
Air Insulated
Gas Insulated
Others
By Voltage
Low
Medium
High
By Current
AC
DC
By End User
Transmission & Distribution Utilities
Industries
Commercial & Residential
Others
