By the end of 2023, the electrical market’s value in Saudi Arabia is projected to reach US$10.8 billion and will continue growing to exceed more than US$11 billion by 2024. The compound annual growth rate (CAGR) of 10.4% at the given forecast period also explains how big and profitable the prospect of the electrical market in Saudi Arabia.
The electrical market, as it sounds, encompasses business activities in the electrical products supply channel: products to secure cables, to produce association points and low voltage product used in applications rated less than one kilovolt. The electrical products are channeled for residential applications, commercial applications, also to the industrial and utility markets. Over the whole business activities on this market, Saudi Arabia has to reflect the principle of energy efficiency. It is encouraged to implement renewable energy sources, especially solar energy.
As the infrastructure activities is progressing on a fast pace in Saudi Arabia coupled with expanding consumer expenditure, compatible electrical products ripen into surging demand that led to the renewal of existing electrical and lighting systems. This business sector is also expected to gain significantly from the increasing energy demand in the Middle East.
Market segmentation for electrical industry is grouped into several aspects based on solutions, product type, technology, application, and lighting control systems market by application. Lighting systems, as one of the electrical market segments based on solutions, seemed to be more appealing because they contribute to the physical presence or appearance of the location they are installed at. It is emphasized that more than 80% of the total demand is being brought in by lighting system solutions. Residential and commercial applications are two domains expected to adopt the new lighting systems. Big players are interested in mergers and acquisitions in order to create an entry to expand revenue opportunities.
The landscape of electrical market in Saudi Arabia is quite fragmented among a great number of competitive players staking a claim for shares. According to a report published by Transparency Market Researcht, ABB Ltd, Alfanar Electric, and Schneider Electric SA stand as the big three players in the forefront given their reputable product portfolio and global presence. The above-mentioned companies have made up for more than a quarter of the total demand share in the electrical market.