Press Release

Middle East Smart Grid Market to be Dominated by Software Segment During the Forecast Period

Increasing investments in smart meters installation and renewable energy deployment are the factors propelling the Middle East Smart Grid Market growth in the forecast period.


According to TechSci Research report, “Middle East Smart Grid Market - By Country, Competition, Forecast and Opportunities, 2028”. The Middle East smart grid market is expected to register a high CAGR in the forecast period. Adoption of renewable energy sources are the main factor due to which people are moving towards solar energy, and smart grids are majorly used in solar energy generation system. Owing to which Middle East smart grid market is expected to grow in the future. For instances, countries like Saudi Arabia are moving towards less carbon emission program.  According to Vision 2030, Saudi Arabia aims to reduce its reliance on oil exports, diversify its energy sources, and harness its vast potential for renewable energy. The Mutajadeda Program promotes the growth of the private renewable energy industry with an emphasis on distributed solar electricity generating projects, and the production of renewable energy components. 


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Middle East Smart Grid Market.”


The Middle East Smart Grid Market is segmented based on components, application, end user and country. Based on country, the market is segmented into Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and rest of Middle East.

Based on component, the market is segmented into software and hardware. In the upcoming years, the Middle East smart grid market is anticipated to be dominated by the software segment. Software represented approximately 60 % of the market share. Software for smart grids uses digital technologies to make it easier for energy and data to be sent to suppliers and consumers. The power grid can be digitalized to help decrease carbon emissions, operational and management expenses, outage downtime, and increase security and integrations with both conventional and renewable energy sources. The Internet of Things (IoT) SIM platform from companies like Vodafone, is used to deploy smart meters, providing KAHRAMAA (company)real-time data. Based on Hardware, the market is sub-segmented by sensors, communication equipment, and others.


Based on application,
the market is segmented into power generation and transmission networks, distribution and advanced metering infrastructure (AMI), and other technology application areas. The region's power generation and transmission networks have experienced rapid expansion in recent years, and this trend is anticipated to continue over the projection period. Due to rising investments and growing use of renewable energy in the region's power-generating, applications for smart grids have seen substantial growth. A significant portion of the region's power transmission network is owned by Saudi Arabia. In 2021, Saudi Arabia installed 40 new transmission substations and around 2371.68 circular km of overhead and subterranean lines. Additionally, the Dubai Electricity and Water Authority (DEWA) launched the second phase of its USD 1.9 billion smart grid strategy in April 2022, including the years 2021 to 2035. The first phase of the program, from 2014 to 2035, has achieved its short-term objectives. Between 2015 and 2017, DEWA fully automated its transmission network connected to the 400 kV and 132 kV substations.


Based on end user,
the market is segmented into industrial, commercial, residential, and utility. The utility segment is expected to dominate the market with the largest market share. Since grid technologies are increasingly being deployed regionally, the utility industry is anticipated to experience a significant rise. Furthermore, these technologies have been recognized by the governments of developing and rising nations as critical investments in infrastructure will aid in meeting carbon reduction objectives. The government is forced to develop regulatory norms for carbon emission as a result of the expanding population, industrialization, and growing environmental concerns caused by fossil fuel power plants. 


Key market players in the Middle East smart grid market include:

  • Water Authority (DEWA)
  • Abu Dhabi National Energy Company PJSC (Taqa)
  • Alfanar Group
  • Qatar General Water & Electricity Corporation (Kahramaa)
  • General Electric Company
  • Hitachi Energy Ltd
  • Siemens AG
  • Landis+Gyr Group AG
  • EDMI Limited
  • Honeywell International Inc.


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“To encourage the development of the nation's renewable energy industry, Saudi Arabia intends to grant industrial licenses to businesses that operate in the power and renewable energy industries. Furthermore, by 2030, the government wants to meet 50% of its energy demands using renewable energy. The Saudi government stated that it will achieve net-zero emissions by 2060. In addition, the government plans to spend more than USD 180 billion to accomplish its objective. Since the smart grid market in Middle East region is gaining traction.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.


“Middle East Smart Grid Market By Component (Software and Hardware (Sensors, Communication Equipment, and others)), By Application (Power Generation & Transmission Networks, Distribution & Advanced Metering Infrastructure (AMI), and Other Technology Application Areas), By End User (Industrial, Commercial, Residential, and Utility), By Country, Competition, Forecast and Opportunities, 2028”,
has evaluated the future growth potential of Middle East Smart Grid Market and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities present in the Middle East Smart Grid Market.


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