Saudi Arabia’s Solar Energy Market Set for Dramatic Expansion-CAGR Above 51%, Driven by PV Leadership and CSP Industrial Use

Saudi Arabia’s Solar Energy Market Size & Trends | Mordor Intelligence

Mordor Intelligence has published a new report on the “Saudi Arabia’s Solar Energy Market” offering a comprehensive analysis of size, share, trends, growth drivers, and future projections.

Introduction

Saudi Arabia’s solar energy market is on track for remarkable growth. According to recent estimates, the segment is expected to register a compound annual growth rate of more than 51% over the next five years. Solar photovoltaic (PV) systems dominate the market, accounting for roughly 98% of installed capacity as of 2024. At the same time, concentrated solar power (CSP) remains important, especially for supplying heat to industries like oil processing and desalination.

This rapid build-up reflects Saudi Arabia’s broader push under Vision 2030 to diversify its energy mix. The government has set ambitious benchmarks: producing 40 GW of photovoltaic capacity, 2.7 GW of CSP, and 16 GW of wind energy by 2030. With policy support, falling technology costs, and high solar availability, the kingdom is accelerating its shift from relying mainly on oil to drawing power from the sun.

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Key Trends

Growth in Solar Photovoltaic and Concentrated Solar Power

PV Dominance: In 2024, solar photovoltaic accounted for nearly all deployed solar capacity, about 98%-a clear sign that PV technologies are the backbone of Saudi’s solar build‐out

CSP’s Strategic Role: While CSP currently represents a small share, efforts to install around 2.7 GW by 2030 are aimed at leveraging CSP’s thermal storage for industrial applications-such as enhanced oil recovery, water desalination, and chemical processing.

Ambitious National Targets and Market Momentum

Fast-Paced Expansion: The solar energy market’s projected CAGR exceeding 51% illustrates the speed of expansion expected through 2030.

Vision 2030 Goals: Related renewables plans aim for 40 GW PV + 2.7 GW CSP + 16 GW wind by 2030, showing a coordinated push across multiple clean energy sources.

Broader Renewable Strategy

Though centered on solar, the kingdom’s strategy includes wind and large-scale initiatives in a coordinated national strategy. This multi-source approach aims to shift more of its electricity supply from oil-fired plants to renewables, supported by low-cost financing and strategic planning.

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Market Segmentation

By Technology Type

Solar Photovoltaic (PV)

Holds ~98% of the market share in installed solar capacity as of 2024

Concentrated Solar Power (CSP)

A smaller share currently but targeted to reach approximately 2.7 GW by 2030

By End Use and Application

Industrial Applications

CSP systems are being planned specifically to meet industrial needs-such as process heat in oil and chemicals, water desalination, or steam generation

Utility-Scale Solar Farms

Ongoing large-scale PV deployments dominate capacity growth, though specific project breakdowns (MW per project) isn’t detailed in the proprietary report.

Summary Bullets

PV segment: ~98% of capacity, growing rapidly with supportive framework.

CSP segment: Targeted at 2.7 GW by 2030 and focused on industrial uses.

End-use breakdown: Utility-scale PV leads; CSP tailored for heat-intensive industries.

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Key Players:

Among the leading names active in Saudi’s solar energy market are:

ACWA Power Company

Alfanar Group

Abu Dhabi Future Energy Company (Masdar)

EDF Renewables

Saudi Electricity Company

These companies are at the forefront of deploying PV solar, developing CSP projects, and investing in emerging solar technologies — including partnerships with institutions for perovskite-based cells and other next-generation modules

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Conclusion

In short, Saudi Arabia’s solar energy market is entering a phase of rapid expansion. PV systems will continue to dominate, backed by expected annual growth of over 50%. At the same time, CSP will gain traction through industrial integration, thanks to its heat-storage advantages.

This surge is firmly rooted in Vision 2030’s comprehensive strategy, which blends PV, CSP, and wind targets with investment and government support. With strong local and international players actively investing, the kingdom stands poised to transform its energy landscape-moving from oil dependency toward a future powered substantially by the sun.

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