Saudi Arabia Wind Energy Market Overview

Market Size in 2024: USD 2.07 Billion

Market Size in 2033: USD 3.74 Billion

Market Growth Rate 2025-2033: 6.80%

According to IMARC Group's latest research publication, "Saudi Arabia Wind Energy Market Size, Share, Trends and Forecast by Component, Rating, Installation, Turbine Type, Application, and Region, 2025-2033", The Saudi Arabia wind energy market size reached USD 2.07 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3.74 Billion by 2033, exhibiting a growth rate (CAGR) of 6.80% during 2025-2033.

Growth Factors in the Saudi Arabia Wind Energy Market

• Vision 2030 and Renewable Energy Ambitions

Saudi Arabia’s Vision 2030 is turbocharging the wind energy sector by pushing for a greener, less oil-dependent economy. The government aims to generate 50% of electricity from renewables, with wind as a key player. The National Renewable Energy Program (NREP) is driving projects like the 400 MW Dumat Al Jandal wind farm, powering 70,000 homes and cutting 988,000 tons of carbon emissions annually. The Public Investment Fund (PIF) backs major initiatives, attracting global giants like EDF Renewables and Masdar. Simplified regulations and funding frameworks are luring investors, while the Saudi Green Initiative’s goal to slash 278 million tons of emissions boosts wind project momentum. This strategic shift is creating jobs and positioning the Kingdom as a renewable energy leader.

• Cost-Competitive Wind Energy Production

Wind energy in Saudi Arabia is becoming a budget-friendly option, thanks to record-low production costs. The Al-Ghat and Wa’ad Alshamal projects have set global benchmarks, with wind power costing less than USD 16 per megawatt-hour, beating previous lows of USD 20. Technological advancements, like GE’s 2.75-120 turbine customized for Saudi’s climate, boost efficiency by analyzing thousands of data points per second. Favorable wind speeds, averaging 4.38 m/s in Al-Jouf, support high-capacity factors, like 42.6% in Al Madinah. Government support through competitive auctions and public-private partnerships (PPPs) further lowers costs, making wind a strong rival to fossil fuels. This affordability is driving investment and expanding wind farms, making clean energy accessible across the Kingdom.

• Growing Private Sector Involvement

Private companies are jumping into Saudi Arabia’s wind energy market, fueled by attractive investment opportunities. Major players like ACWA Power, Vestas, and PowerChina are leading the charge, with projects like the 700 MW Yanbu Wind Farm and 500 MW Wa’ad Alshamal Wind Project underway. In 2024, PowerChina secured an EPC contract for Wa’ad Alshamal, showcasing global trust in Saudi’s market. The government’s push for privatization, backed by the PIF, has drawn international expertise, with companies like Envision planning local turbine manufacturing. Over 15 major vendors operate in the sector, supported by streamlined regulations and incentives. This private sector surge is boosting local supply chains, creating jobs, and accelerating wind farm development, cementing Saudi Arabia’s role as a renewable energy hub.

Key Trends in the Saudi Arabia Wind Energy Market

• Rise of Offshore Wind Projects

Offshore wind is gaining traction in Saudi Arabia, tapping into high wind speeds along the Red Sea coast. A notable example is the planned 500 MW floating offshore wind farm by Plambeck Emirates LLC, leveraging the Kingdom’s northeastern and western regions with wind speeds of 6.0–8.0 m/s. These projects promise higher capacity factors than onshore farms, with Al Madinah sites hitting 42.6%. The government’s focus on offshore development, supported by the NREP, is attracting private players like Saudi Aramco, which is investing in coastal energy infrastructure. Offshore wind reduces land use conflicts and complements Saudi’s green hydrogen ambitions, like NEOM’s 4 GW facility. This trend is set to expand, offering cleaner energy and economic benefits through innovative floating turbine technology.

• Hybrid Renewable Energy Systems

Hybrid systems combining wind, solar, and storage are emerging as a smart solution in Saudi Arabia. The NEOM project is a standout, planning nine hybrid renewable energy systems (HRES) to optimize power generation. These systems cut costs and improve reliability, with studies showing significant savings over traditional setups. For instance, a hybrid site in Al Jouf combines wind’s 42.6% capacity factor with solar’s consistency. The government’s push for integrated energy, backed by the Saudi Energy Efficiency Centre, supports this trend. Companies like ACWA Power are exploring hybrid models, with projects like Al Shuaibah blending wind and solar. This approach maximizes land use and grid stability, making it a game-changer for Saudi’s renewable energy goals and sustainable urban development.

• Green Hydrogen Production Powered by Wind

Wind energy is fueling Saudi Arabia’s green hydrogen ambitions, a trend reshaping the energy landscape. The NEOM Green Hydrogen Company’s Wind Garden, with 250 turbines, powers a 4 GW facility, producing clean fuel for domestic and export markets. The Kingdom aims for 2.9 million tons of hydrogen annually, leveraging wind’s low-cost electricity, like Al-Ghat’s USD 16 per MWh. This trend aligns with Vision 2030’s sustainability goals and attracts global investors like Envision, eyeing local manufacturing. Posts on X highlight excitement around wind-powered hydrogen projects, reflecting industry buzz. By integrating wind with hydrogen production, Saudi Arabia is creating a new revenue stream, reducing emissions, and positioning itself as a global leader in clean energy innovation.

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Saudi Arabia Wind Energy Industry Segmentation:

The report has segmented the market into the following categories:

Component Insights:

• Turbine
• Support Structure
• Electrical Infrastructure
• Others

Rating Insights:

• ≤ 2 MW
• >2 ≤ 5 MW
• >5 ≤ 8 MW
• >8 ≤ 10 MW
• >10 ≤ 12 MW
• >12 MW

Installation Insights:

• Offshore
• Onshore

Turbine Type Insights:

• Horizontal Axis
• Vertical Axis

Application Insights:

• Utility
• Industrial
• Commercial
• Residential

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Future Outlook

Saudi Arabia’s wind energy market is on track for explosive growth, driven by Vision 2030’s goal of 50% renewable electricity. With 16 GW of wind capacity targeted and projects like Yanbu (700 MW) and Al-Ghat (600 MW) advancing, the Kingdom is scaling up fast. Low-cost production, like USD 16 per MWh at Wa’ad Alshamal, makes wind a competitive choice. Private giants like ACWA Power and global players like Vestas are boosting local manufacturing and expertise. Offshore wind and hybrid systems, like NEOM’s 4 GW hydrogen project, promise innovation and efficiency. Government incentives, streamlined regulations, and a focus on green hydrogen will draw more investment. As Saudi Arabia balances economic diversification with sustainability, wind energy will play a starring role, transforming the Kingdom into a renewable energy powerhouse.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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