Energy Management - Saudi Arabia

Saudi Arabia

Revenue in the Energy Management market is projected to reach US$25.4m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 9.33%, resulting in a projected market volume of US$36.3m by 2028.
In the Energy Management market, the number of active households is expected to amount to 1.6m users by 2028.
Household penetration will be 11.1% in 2024 and is expected to hit 24.4% by 2028.
The average revenue per installed Smart Home currently is expected to amount to US$37.83.

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Analyst Opinion

The Energy Management market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Customers in Saudi Arabia are increasingly prioritizing energy efficiency and sustainability. They are seeking solutions that can help them reduce energy consumption, optimize energy usage, and lower their carbon footprint. This shift in customer preferences is driven by a growing awareness of the environmental impact of energy consumption and a desire to reduce energy costs.

Trends in the market: One major trend in the Energy Management market in Saudi Arabia is the adoption of smart grid technology. Smart grid systems enable the efficient distribution of electricity by utilizing advanced sensors, meters, and communication networks. This technology allows for real-time monitoring of energy usage, which helps customers identify areas of inefficiency and make data-driven decisions to optimize energy consumption. The implementation of smart grid technology is supported by government initiatives and regulations aimed at improving energy efficiency and reducing carbon emissions. Another trend in the market is the increasing use of renewable energy sources. Saudi Arabia has significant renewable energy potential, particularly in solar and wind power. The government has launched ambitious renewable energy projects and initiatives to diversify the country's energy mix and reduce its reliance on fossil fuels. This shift towards renewable energy sources creates opportunities for energy management solutions that can integrate and optimize the use of renewable energy in buildings and industries.

Local special circumstances: Saudi Arabia is one of the largest oil producers in the world, and the energy sector plays a crucial role in the country's economy. However, the government recognizes the need to diversify its economy and reduce its dependence on oil. As a result, there is a strong focus on developing the renewable energy sector and improving energy efficiency. This creates a favorable environment for the growth of the Energy Management market, as businesses and industries are incentivized to adopt energy management solutions to reduce their reliance on fossil fuels and improve their environmental performance.

Underlying macroeconomic factors: The Saudi Arabian government has implemented various policies and initiatives to promote energy efficiency and sustainability. These include the National Energy Efficiency Program, which aims to reduce energy consumption by 30% by 2030, and the Saudi Vision 2030, which outlines the country's long-term development goals, including diversifying the economy and reducing carbon emissions. These government initiatives provide a supportive regulatory framework and create a favorable market environment for energy management solutions. In conclusion, the Energy Management market in Saudi Arabia is experiencing significant growth and development due to changing customer preferences, the adoption of smart grid technology, the increasing use of renewable energy sources, and the government's focus on energy efficiency and sustainability. These trends and special circumstances create opportunities for businesses in the energy management sector to provide innovative solutions and contribute to the country's transition towards a more sustainable and efficient energy system.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of smart home products, excluding taxes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market category. As a basis for evaluating markets, we use the Statista Global Consumer Survey, market data from independent databases and third-party sources, and Statista interviews with market experts. In addition, we use relevant key market indicators and data from country-specific associations, such as household internet penetration and consumer spending for households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting innovative products due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward smart home integration.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated once a year, in case market dynamics change we do more frequent updates.