Saudi Arabia Transformers Market Assessment, By Type [Distribution Transformers, Power Transformers, Others], By Cooling Type [Air Cooled, Oil Cooled], By Voltage [Low Voltage Transformers, Medium Voltage Transformers, High Voltage Transformers], By Application [Utility, Residential, Commercial and Industrial, Others], By Region, Opportunities and Forecast, 2017-2031F

Saudi Arabia transformers market is projected to witness a CAGR of 5.60% during the forecast period 2024-2031, growing from USD 2.45 billion in 2023 to USD 3.79 billion in 2031. A combination of several factors is involved in the expansion of transformers, such as energy transition towards renewable sources, smart grid development, growing urbanization, growth of the oil and gas sector, and an increased focus on the improvement of energy efficiency. In addition, higher authorities are implementing policies that target carbon neutrality, renewable energy integration, and power grid modernization, which will continue to drive the growth of the transformer market in the forecast years.

For instance, Saudi Arabia’s vision is to promote large-scale infrastructure projects, including the development of smart cities, industrial zones, and mega-projects in the Vision 2030 initiative program. The upcoming projects require significant expansion of the power grid, which boosts the demand for power and distribution transformers in the market.

Rapid Urbanization and Industrialization Accelerate Market Growth

New developments are being introduced to enhance urbanization in the country. High investment is being involved in building residential, commercial, and public infrastructure. Urbanization boosts the demand for electricity, which requires an expanded power grid, leading to higher demand for distribution transformers to ensure reliable power supply in urban areas. New power generation, transmission, and distribution networks are required for the development of cities and industrial hubs.

Industrialization demands continuous and reliable electricity flow in sectors, such as manufacturing, mining, and processing, which require high-quality transformers. The upgradation of electrical infrastructure to support automation and more energy-intensive operations in industries led to additional demand for high-quality transformers. Moreover, large-scale industrial operations require high-voltage transformers to ensure uninterrupted power supply, which further boosts transformer market size.

For instance, in September 2024, Saudi Arabia launched USD 1.3 trillion in real estate and infrastructure projects over the last eight years as a part of its efforts to diversify the economy away from oil and improve its attractiveness for living, working, and traveling. This initiative encompasses more than a million residential units and significant developments, including Neom on the Red Sea coast, according to the latest Saudi Giga Projects Report.

Renewable Energy Integration and Grid Modernization Augmenting Market Size

Saudi Arabia is moving towards renewable sources of energy such as solar, wind, hydro, and other energy. Saudi Arabia is looking to create a proper renewable energy mix that drives the demand for transformers in the market.

The integration of large-scale renewable energy with the grid requires a robust transmission infrastructure. New transmission lines are needed to carry electricity from solar and wind farms. Transmitting the power generated from large solar farms over long distances requires high-capacity power transformers, which fosters the demand for the market in the forecast period.

Modernized smart grids are equipped with smart transformers, which are essential for managing fluctuations in energy supply, optimizing distribution, and ensuring grid stability. Saudi companies are investing heavily in grid modernization and utility-scale renewable energy projects to meet clean energy mix goals, thereby driving the market demand for transformers in the country.

For instance, in 2024, the Saudi Arabia government has a target for producing renewable energy amounting to 58.7 GW by 2030, out of which 40 GW is from solar energy and 16 GW from wind.

Government Investments in Power Infrastructure to Drive Market Growth

The Saudi Arabian government is increasing its efforts to invest in power infrastructure, which directly influences the expansion, modernization, and reliability of electricity grids. Expanding the grid to reach underserved regions requires significant investments in distribution channels of the transformers market.

Furthermore, the government is investing in the creation of smart grid network connections in Saudi Arabia. With a smart grid network, utility providers can adjust to real-time conditions, enhance power quality, and dynamically respond to changing electricity demands. With the advent of microgrids and smart transformers, the market is anticipated to boost in the forecast period. Thus, investments create significant opportunities for transformer manufacturers, especially as the country is transitioning to cleaner energy and smarter grid technologies, driving the demand for transformers.

For instance, Saudi Arabia Energy’s spending on power and renewable energy projects is expected to reach USD 293 billion by 2030.

Distribution Transformers to Dominate the Market Share

Saudi Arabia is working to modernize and expand the existing power grid to meet rising energy demands. The aging power infrastructure is being updated with smart grids, which require modern, intelligent transformers to enhance reliability, efficiency, and fault detection. The process of extending the grid to new residential areas requires a significant number of distribution transformers to reduce electricity for local consumption. Moreover, the Saudi government is committed to improving electricity access in the country. Electrification projects require significant investments in distribution transformers to bring power to distant and less-populated areas. Thus, to fulfill the country’s goals, the demand for distribution transformers is on the rise, causing the segment to dominate the market.

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Riyadh Leads the Saudi Arabia Transformers Market Share

Riyadh is expected to dominate the Saudi Arabia transformers market and have the highest market share. Riyadh is undergoing major expansion in terms of population, commercial, and industrial projects, leading to an increasing demand for reliable power supply and transformers. Moreover, Riyadh is a part of Saudi Arabia's smart city initiatives, which plans to integrate digital technologies and smart infrastructure into urban planning, which drive the transformers market. Smart projects require transformers that are capable of monitoring energy flow, managing energy distribution, and improving grid efficiency, thereby increasing the demand for advanced transformer technologies in the region.

For instance, in 2024, Riyadh Metro and New Riyadh City developments are massive projects that are ongoing in Riyadh, necessitating a substantial electrical infrastructure.

Future Market Scenario (2024 – 2031F)

1. Saudi Arabia is focused on improving energy efficiency and reducing energy losses in transmission and distribution networks.

2. Government concerns push for increasing the integration of renewable energy, leading transformers to gain significance.

3. The rise in the electrification of transportation resulted in a rise in the demand for distribution transformers in Saudi Arabia.

4. Reducing transmission and distribution losses is becoming the key priority for a country, which has led to the adoption of new technology transformers.

Report Scope

“Saudi Arabia Transformers Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Saudi Arabia transformers market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	2023
Historical Period	2017-2022
Forecast Period	2024-2031
Projected Growth Rate	CAGR of 5.60% between 2024 and 2031
Revenue Forecast in 2031	USD 3.79 billion
Segments Covered	Type, Cooling Type, Voltage, Application
Regions Covered	Riyadh, Makkah, Eastern Region, Madinah, Rest of Saudi Arabia
Key Companies Profile	Hitachi Energy Ltd., Schneider Electric, The Saudi Transformers Company Ltd. (STC), Rawafid Systems, Alfanar Group, Mitsubishi Electric Saudi Ltd., United Transformers Electric Company (Utec), Elsewedy Electric, Wahah Electric Supply Company of Saudi Arabia Ltd. (WESCOSA), Voltamp Group
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, Saudi Arabia transformers market has been segmented into the following categories: 

• By Type
  • Distributed Transformers
  • Power Transformers
  • Others
• By Cooling Type
  • Air Cooled
  • Oil Cooled
• By Voltage
  • Low Voltage Transformers
  • Medium Voltage Transformers
  • High Voltage Transformers
• By Application
  • Utility
  • Residential
  • Commercial and Industrial
  • Others
• By Region
  • Riyadh
  • Makkah
  • Eastern Region
  • Madinah
  • Rest of Saudi Arabia

Key Players Landscape and Outlook

Continuous innovation characterizes the landscape of transformers in Saudi Arabia as the companies compete to outperform one another in terms of power generation and distribution. The market prognosis remains positive, owing to increased demand for high-quality smart transformers. Transformers manufacturers are concerned with supply chain resilience, energy efficiency, and environmental practices, which are expected to define the industry's future. Production expansion, collaborations, and developing technologies are projected to increase competition in this fast-paced market.

For instance, in 2024, Saudi Electricity Company (SEC) is planning to upgrade the electricity generation, transmission, and distribution infrastructure to meet future demand with a capital investment of around USD 126 billion over the next six years.

Key Players Operating in Saudi Arabia Transformers Market are:

• Hitachi Energy Ltd.
• Schneider Electric
• The Saudi Transformers Company Ltd. (STC)
• Rawafid Systems
• Alfanar Group 
• Mitsubishi Electric Saudi Ltd.
• United Transformers Electric Company (Utec)
• Elsewedy Electric
• Wahah Electric Supply Company of Saudi Arabia Ltd. (WESCOSA)
• Voltamp Group

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