Saudi Arabia Transformer Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Transformer Market Analysis
Saudi Arabia's transformer market is projected to register a CAGR of over 5% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.
- Over the medium term, owing to the developments in renewable energy creating a need for upgrading the electricity grid networks is driving the transformer market growth.
- On the other hand, challenges like high initial costs are expected to hamper the market growth in the near future.
- Nevertheless, Innovating transformers for smart grids creates opportunities for the transformer market. In a power supply system, smart transformers can act independently to regulate voltage, monitor and manage power demand fluctuations, and provide feedback. They can also be accessed remotely by utilities.
Saudi Arabia Transformer Market Trends
This section covers the major market trends shaping the Saudi Arabia Transformer Market according to our research experts:
Distribution Transformers Expected to Dominate the Market
- Distribution transformers are also known as isolation transformers. In electric power distribution, this transformer is used to alter high voltages to normal voltages like 240/120V. Different types of transformers are available in the distribution system, such as single phase, three phase, underground, pad-mounted, and pole-mounted transformers.
- In addition to increasing construction activity and the establishment of business hubs, industries, and infrastructure, Saudi Arabia has also expanded its power infrastructure, which has increased the demand for distribution transformers. Furthermore, government initiatives such as Saudi Arabia Vision 2030 and economic diversification policies are expected to boost the transformer market during the forecast period.
- According to the BP Statistical Review of World Energy, the total electrical energy production increased by 5.5% in 2021 with the electricity demand that reached 356,6000 GWh compared to 338,000 GWh in 2020.
- According to General Authority of Statistics, in Saudi Arabia, electricity consumption also increased by 0.21% during 2020 to reach 289,333 GWh, compared to 2019 when consumption was 288,713 GWh.
- In September 2022, Saudi Arabia announced to invest USD 10.6 billion in developing local infrastructure projects. Over 150,000 housing units is expected to be provided across 11 cities under the new agreement, with 90 million square meters dedicated to local infrastructure projects. The project will also allocate nearly 54 million square meters to public areas, facilities, parks, and road networks. The ongoing infrastructure projects in the country are expected to drive the demand for distribution transformers.
- Therefore, based on the above-mentioned factors, the distribution transformer segment is expected to dominate the growth in the transformer market during the forecast period.
Increasing Renewable Energy Deployment is Expected to Drive the Market
- Increasing investment in renewable energy systems is expected to be a significant driver for the transformer market during the forecast period. The country has been investing heavily in renewables in recent years in a bid to move away from energy generation from conventional energy resources like oil and natural gas. Increasing integration of renewable energy in the region's electricity demand makes the usage of transformers necessary to maintain a steady supply of electricity as power generation from renewable energy systems can sometimes be unsteady.
- Based on Vision 2030, Saudi Arabia is aiming to reduce its dependency on oil revenues, diversify its energy mix, and develop its significant potential of renewable energy, with solar energy holding a major share. The Mutjadedah Program supports the development of the private renewable energy sector, focusing on renewable energy component manufacture, IPPs, and distributed solar electrical generation projects.
- Further, Saudi Arabia has set a new renewable target of developing and installing 27.3 GW of clean energy by 2024 and 58.7 GW by 2030, of which Solar PV includes 40GW of the target. This is expected to increase the demand for integrating renewable sources with the country's transmission infrastructure and smart grid networks.
- According to the International Renewable Energy Agency (IRENA), Saudi Arabia had a total installed solar PV capacity of 439 MW in 2021, up from 109 MW in 2020. Solar PV accounted for more than 87% of the installed renewable capacity in 2021, most of which came from large-scale solar power projects. The rapid growth is a part of the country's efforts toward its ambitious clean energy target and plans to generate 50% of its energy from renewables by 2030.
- In June 2022, Saudi Aramco planned to reduce its upstream carbon intensity by 15% by 2035 and invest in solar PV and wind projects worth 12 gigawatts, and to produce 11 million mt/year of blue ammonia by 2030, as part of its goal of reaching net zero greenhouse gas emissions by 2050 from its assets in scope 1 and scope 2.
- In September 2022, As the principal buyer of electrical energy and capacity for power projects in the Kingdom, Saudi Power Procurement Company (SPPC) unveiled five new renewable energy projects with a combined capacity of 3,300 megawatts (MW). This includes three wind energy projects which are Yanbu (700 MW), Al-Ghat (600 MW) and Waad Al-Shamal (500 MW) generating a total of 1,800 MW and two solar projects with a total capacity of 1,500 MW includes Al-Henakiyah (1,100 MW) and Tubarjal (400 MW).
- Therefore, considering above factors like incereasing investments in renewable energy infrastructure is expected to drive the market.
Saudi Arabia Transformer Industry Overview
Saudi Arabia transformer market is moderately fragmented. Some of the major players (in no particular order) include Siemens AG, ABB Ltd, General Electric Company, Mitsubishi Electric Corporation, and Schneider Electric, among others
Saudi Arabia Transformer Market Leaders
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Siemens AG
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ABB Ltd
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General Electric Company
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Mitsubishi Electric Corporation
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Schneider Electric
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Transformer Market News
- In April 2022, Hitachi ABB Power Grids was awarded a contract to construct an electricity interconnection by the Saudi Electricity Company and the Egyptian Electricity Transmission Company. The interconnection will facilitate Saudi Arabia and Egypt to exchange up to 3,000 MW of power. It is the first large-scale high-voltage direct current interconnection link project in the Middle East and North Africa. The project will cover the distance of a 1,350 km route using overhead power lines and a subsea cable across the Red Sea.
- In February 2022, in Saudi Arabia, Alfanar Construction has been awarded a USD 175 million contract to construct a 380kV substation in Baha and expand three existing substations at Umluj, Al-Wajh, and Yanbu. The project is going to involve design, engineering, materials procurement, factory inspection and testing, transport and delivery to site, installation, construction works, testing, and commissioning, as well as other associated tasks.
Saudi Arabia Transformer Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD million, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Transformer Type
5.1.1 Power Transformer
5.1.2 Distribution Transformer
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Siemens AG
6.3.2 ABB Ltd
6.3.3 General Electric Company
6.3.4 Mitsubishi Electric Corporation
6.3.5 Schneider Electric
6.3.6 The Saudi transformers Company Ltd
6.3.7 United Transformers Electric Company
6.3.8 Toshiba Corporation
6.3.9 Electric Industries Company
6.3.10 Rawafid Systems
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Saudi Arabia Transformer Industry Segmentation
A transformer is a device that transfers electric energy from one alternating-current circuit to one or more other circuits, either by increasing (stepping up) or reducing (stepping down) the voltage. Essentially, transformers are voltage control devices used in the transmission and distribution of alternating current. Saudi Arabia transformer market is segmented by transformer type. By transformer type, the market is segmented into power transformer and distribution transformer. The report also covers the market size and forecasts for the transformer market across Saudi Arabia. For each segment, the market sizing and forecasts have been done based on revenue (USD million).
Saudi Arabia Transformer Market Research FAQs
What is the current Saudi Arabia Transformer Market size?
The Saudi Arabia Transformer Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Saudi Arabia Transformer Market?
Siemens AG, ABB Ltd, General Electric Company, Mitsubishi Electric Corporation and Schneider Electric are the major companies operating in the Saudi Arabia Transformer Market.
What years does this Saudi Arabia Transformer Market cover?
The report covers the Saudi Arabia Transformer Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Transformer Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Transformer Industry Report
Statistics for the 2024 Saudi Arabia Transformer market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Transformer analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
