Saudi Arabia Wind Energy Market

Saudi Arabia Wind Energy Market Overview:

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. The availability of vast wind resources, increased environmental commitment, rising private sector participation, implementation of various government initiatives, and significant growth in energy consumption are some of the major factors positively impacting Saudi Arabia wind energy market share.

Saudi Arabia Wind Energy Market Trends:

Government Support and Policy Initiatives

The government of Saudi Arabia is increasingly encouraging the generation of wind energy as part of its Vision 2030 to diversify the energy mix of the country. Through the adoption of supportive policies and incentives, the government is encouraging investments in renewable energy. It is offering financial incentives, tax relief, and simplified regulatory procedures to promote wind energy projects. Besides, the government is establishing aggressive renewable energy capacity targets, with wind power contributing significantly to achieve them. This policy-driven strategy is heavily driving the development of the wind power sector in Saudi Arabia, with both domestic and foreign investors flocking to invest and create a friendly environment for technology innovation and infrastructure growth. By the conclusion of 2024, the overall investment amount in renewable energy initiatives totaled around SAR 19.839 billion in Saudi Arabia. This comprises SAR 18.264 billion invested in solar energy initiatives and SAR 1.575 billion designated for the wind energy project. The findings suggested that by the conclusion of 2024, the estimated number of housing units expected to receive electricity from renewable sources reached about 1,140,800 units.

Bountiful Wind Resources

Saudi Arabia is leveraging its rich, untapped wind resources which is supporting the growth of the market. The nation finds itself in areas with optimal wind speeds for wind energy production, especially along the coast of the Red Sea and in the western and northern regions of the kingdom. These are areas that are experiencing increasing attention from energy developers who are considering the viability of large wind farms. As technological developments advance the efficiency of turbines, the nation is maximizing these natural resources for power generation. By tapping these abundant wind resources, Saudi Arabia is making a significant cut in its fossil fuel reliance and moving closer to its renewable energy goals. In 2025, The Principal Buyer has executed a Power Purchase Agreement (PPA) for the Yanbu Wind Energy Project, a 700 MW initiative under Saudi Arabia’s National Renewable Energy Program (NREP). The contract, worth more than 1.7 billion Saudi Riyals (around USD 458 million), was finalized with a joint venture that includes MARUBENI Corporation and Abdulaziz Al Ajlan Sons Co. for Commercial & Real Estate Investment (Ajlan & Bros). Situated in Al-Madinah Province, the Yanbu initiative will provide clean energy at a remarkably competitive Levelized Cost of Electricity (LCOE) of 1.72468 US cents/kWh (6.46755 Halala/kWh).

Technological Developments

Technological advancements in wind turbine efficiency, design, and production are revolutionizing the Saudi wind energy industry. The nation is embracing the newest turbine technologies, enhancing the efficiency and lowering the costs of wind power generation. Saudi Arabia is also concentrating on improving grid integration and energy storage facilities in order to complement the reliability of wind energy, managing the problem of intermittency. The ongoing technological improvement in wind turbine technology is increasing its feasibility and competitiveness with other sources of energy, including oil and natural gas, prompting additional investments in the field. All these developments are contributing significantly to the steady growth of wind energy in Saudi Arabia. IMARC Group predicts that the Saudi Arabia grid energy storage market is projected to attain USD 1,142.75 Million by 2033.

Saudi Arabia Wind Energy Market Growth Drivers:

Reducing the Cost of Wind Energy

The price of wind energy is gradually decreasing, making it a more attractive substitute for conventional sources of energy. Improved manufacturing technology, economies of scale, and technological breakthroughs in turbine efficiency are reducing the cost per megawatt of wind power. Saudi Arabia is taking advantage of the downward trend by investing in wind energy projects that provide competitively priced electricity. The economics of wind power, in contrast to traditional fossil fuel power plants, is making the nation able to cater to its increasing energy needs without adding much economic burden to oil-powered electricity. As prices keep declining, increasing numbers of wind power projects are being started throughout the nation.

Environmental Sustainability Targets

Saudi Arabia is seriously committed to realizing its environmental sustainability targets, and wind energy plays a key role in these efforts. As the nation aims to cut its carbon emissions and drive global climate targets, it is relying more on renewable energy sources, such as wind power. This move is all in pursuit of the nation's overall sustainable development drive, including cutting its carbon footprint, conserving natural resources, and driving a circular economy. Through the integration of wind power into the national grid, Saudi Arabia is diversifying its energy sources and reducing the environmental footprint of its consumption, ultimately fulfilling a part of global efforts toward sustainability.

Strategic Location for Export Opportunities

The strategic location of Saudi Arabia between Europe, Africa, and Asia is offering opportunities for exporting wind power into global markets. The nation is creating the wind energy facilities not just to satisfy internal demand but also in order to become a leader in international renewable energy supplies. The investment in wind farms by Saudi Arabia is creating a competitive edge in exporting renewable energy, specifically to surrounding nations and regions with energy shortages. This global outlook is promoting partnerships, joint ventures, and collaborations with international companies in the field of renewable energy, increasingly spurring the wind power industry's growth.

Saudi Arabia Wind Energy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on component, rating, installation, turbine type, and application.

Component Insights:

• Turbine
• Support Structure
• Electrical Infrastructure
• Others

The report has provided a detailed breakup and analysis of the market based on the component. This includes turbine, support structure, electrical infrastructure, and others.

Rating Insights:

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

A detailed breakup and analysis of the market based on the rating have also been provided in the report. This ≤ 2 MW, >2 ≤ 5 MW, >5 ≤ 8 MW, >8 ≤ 10 MW, >10 ≤ 12 MW, and >12 MW

Installation Insights:

• Offshore
• Onshore

The report has provided a detailed breakup and analysis of the market based on the installation. This includes offshore and onshore.

Turbine Type Insights:

• Horizontal Axis
• Vertical Axis

A detailed breakup and analysis of the market based on the turbine type have also been provided in the report. This includes horizontal axis and vertical axis.

Application Insights:

• Utility
• Industrial
• Commercial
• Residential

The report has provided a detailed breakup and analysis of the market based on the application. This includes utility, industrial, commercial and residential.

Regional Insights:

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

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central region, Western region, Eastern region, and Southern region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Wind Energy Market News:

• July 2025: In a significant step toward sustainable energy, Saudi Arabia has revealed power purchase agreements for the establishment of five large-scale solar photovoltaic (solar PV) plants and two wind energy facilities. These initiatives, led by ACWA Power, Badeel, and Saudi Aramco Power Company (SAPCO), signify a total investment of around $8.3 billion (more than SAR 31 billion), targeting a total capacity of 15,000 MW.
• July 2025: Saudi Power Procurement Co. has entered into a power purchase agreement for the 700-megawatt Yanbu Wind Power Project, supported by an investment of more than SR1.7 billion ($458 million). The agreement was concluded with a group consisting of Japan's Marubeni Corp. and the Kingdom’s Abdulaziz Al-Ajlan Sons for Commercial and Real Estate Investment Co., according to the Saudi Press Agency.
• May 2025: GE Vernova announced that it has obtained an order for five 7H-Class gas turbines - three units of 7HA.03 and two units of 7HA.02 from Técnicas Reunidas and Orascom Construction (TR & ORASCOM CONSTRUCTION). The two firms have executed, under a 50-50 joint venture, the Engineering, Procurement and Construction (EPC) agreement for the Qurayyah Independent Power Plant (IPP) Expansion Project in Saudi Arabia's Eastern Province. This expansion initiative, a 3 gigawatt (GW) combined cycle gas-fired power facility with provisions for a carbon capture unit, seeks to increase electricity generation capacity and improve operational efficiency in Saudi Arabia.
• On June 2024, for the building of the 500 MW Wa'ad Alshamal Wing Project in Saudi Arabia, PowerChina was awarded an engineering, procurement, and construction (EPC) contract. This project contributes to the Kingdom's "Saudi Vision 2030" goal of increasing the nation's proportion of renewable energy resources to about 50%. 
• On May 2024, Marubeni Corporation and Ajlan & Bros inked a power sales deal with Saudi Power Procurement Company to create two large-scale wind power projects in Saudi Arabia, 600 MW Al-Ghat and 500 MW Waad Al-Shamal.

Saudi Arabia Wind Energy Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia wind energy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia wind energy market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia wind energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.