Saudi Arabia Transmission Line Market Assessment, By Type [Overhead Transmission Lines, Underground Transmission Lines, Submarine Transmission Lines], By Voltage Range [Low, Medium, High, Extra-high, Ultra-high], By Application [Electricity Transmission,

Saudi Arabia Transmission Line Market Assessment, By Type [Overhead Transmission Lines, Underground Transmission Lines, Submarine Transmission Lines], By Voltage Range [Low, Medium, High, Extra-high, Ultra-high], By Application [Electricity Transmission, Renewable Energy Integration, Smart Grid Infrastructure], By End-user [Telecommunication, Transportation, Utilities, Industrial and Commercial, Others], By Region, Opportunities and Forecast, 2017-2031F

Saudi Arabia transmission line market is projected to witness a CAGR of 3.00% during the forecast period 2024-2031, growing from USD 3.15 billion in 2023 to USD 3.99 billion in 2031. With the increasing demand for electricity throughout the country, there is a growing need in Saudi Arabia to enhance transmission lines. Transmission lines help unite communities by connecting remote areas, which in turn improves grid efficiency. Moreover, these lines enhance the sustainability of the country's energy future, thereby aligning with the goals set by Saudi Vision 2030.

In September 2024, Larsen & Toubro (L&T) announced that it had bagged new orders to set up approx. 500 kV high voltage direct current (HVDC) transmission links for interconnecting regions of Saudi Arabia's national electricity network. It will allow power exchange between the regions, thus improving grid resilience. In addition, L&T will execute three more projects, including two 380-kV overhead transmission lines and a 380 kV Gas Insulated Substation, that will drive renewable energy interconnection and strengthen the grid. Moreover, the increasing investment in building a large power infrastructure will drive the demand for transmission lines in the market.

Utilization of Smart Grids is Amplifying the Market Expedition Rate

Smart grids in Saudi Arabia have greatly contributed to the enhancement of transmission lines across the country, which, in turn, has increased the efficiency and reliability of the grid. Smart grids provide real-time monitoring and control, allowing an opportunity for easier electricity flow and minimizing power losses during transmission, thereby proliferating market growth.

For instance, in December 2023, Energy and Water Company (ENOWA), a utility subsidiary of NEOM, and Saudi Arabian Electric Utility Company jointly announced the blueprint for developing world's first renewable high-voltage smart grid at the northwestern Tabuk province of Saudi Arabia. The concept, also known as grid of microgrids will deliver 100 percent renewable energy-derived electricity to the new future, NEOM region, while reducing corridor footprints by as much as 50%. Moreover, the initiative will immensely boost the connectivity between the far-flung renewable energy farms and urban areas via highly advanced transmission lines, thereby contributing to a sustainable future for the country.

Rising Investment in Power Transmission Projects is Pushing Market Growth Significantly

Saudi Arabia's power transmission projects enhance energy security and support the country’s overall economic growth, which drives the demand for efficient transmission line. These projects incorporate renewable energy sources, thereby helping in the country’s transition towards sustainability. Moreover, Saudi Arabia is aiming to expand and modernize its transmission network to improve power reliability and efficiency, along with reduced operational costs, which creates opportunities for the transmission line market in the forecasted period.

For example, in August 2023, Hyundai Engineering & Construction (E&C) Co.Ltd. won a USD 145 million contract from the Saudi Electricity Company (SEC), for commissioning the Saudi Neom-Yanbu 525kV HVDC Transmission Line Construction Project, which will extend from Yanbu to NEOM, covering up to 605 kilometers. The construction of the transmission line will be carried out in two portions, wherein, in portion 1, Hyundai E&C will construct an HVDC line that covers up to 207 km and consists of 450 transmission towers, which is expected to be completed by July 2027. Moreover, the new project is expected to aid Saudi Arabia's renewable energy streams and expand its power grid capabilities.

Increase in the Usage of Overhead Lines to Spearhead Market Growth

The main driving force behind the overhead lines in Saudi Arabia is a rapid increase in electricity demands across the country and the need for a strong transmission network. Overhead lines are essential for transmitting electricity from Saudi Arabia’s generating stations to power consumption areas. Additionally, overhead lines are more economical and easier to maintain as compared to the underground cables, thus making them suitable for large-scale infrastructure projects in the country.

For instance, in September 2024, KEC International Ltd. announced that the company has secured a new 380kV overhead transmission line contract in Saudi Arabia. The development marked KEC's intention to grow its footprint in the energy sector of the Middle East. The order is valued at approximately USD 169.4 million and represents KEC's strong engineering, procurement, and construction (EPC) capabilities. The projects will construct new electricity transmission infrastructure in the region and are expected to drive the modernization and efficient use of energy strategies as per the country’s rules and policies.

Eastern Saudi Arabia to Emerge as the Fastest Growing Region

The eastern region has emerged as the fastest-growing area in the power transmission sector of Saudi Arabia, due to the prevalence of significant transmission line projects combined with the availability of oil field projects in the region. Furthermore, this region plays a major role in supporting the electricity network and integrating renewable energy, which drives demand for transmission lines in the market.

For instance, in May 2023, Nesma Infrastructure & Technology decided to enter in contract with National Grid for the execution of a 115kV overhead transmission line connecting Ain Dar to Abqaiq over an approximate distance of 40 km. The project cost around USD 18.11 million. The project will be executed in three stages and involves the construction of 125 towers. The new transmission line will become important for the reliable connection between these two locations, thereby improving efficiency of the regional grid for electricity transmissions, and stabilizing power supply for customers. The project is expected to be constructed within 25 months, thereby enhancing the demand for efficient transmission lines in the region.

Future Market Scenario (2024 – 2031F)

Investments in transmission lines by the Saudi government is going to strengthen the country’s power system infrastructure to support renewable energy sources. Projects such as the NEOM-Yanbu HVDC transmission line aim to facilitate clean energy transfer and improve the efficacy of power infrastructure. These developments will support regional energy integration and bolster the efficiency and reliability of telecommunications industry through enhanced power distribution systems, which, in turn, is expected to cater to ample opportunities in the future.

Saudi Arabia is focusing on R&D sector for the introduction of highly advanced transmission lines, thereby leading to effective distribution of power across the country. This, in turn, will likely result in huge opportunities for market growth over the upcoming years.

Furthermore, Saudi Arabia is planning to integrate smart grid technologies into the future transmission market which will help to enhance the efficiency and reliability of power in the grid, thereby ensuring efficient transfer of electrical energy.

Key Players Landscape and Outlook

Saudi Arabia's major market players are competing continuously among themselves to gain an edge in the market. The Saudi Arabian firms are investing significantly in the development of transmission line technologies that enhance operational efficiencies and helps in cutting electricity costs. Moreover, these players have indulged in multiple partnerships to enhance the efficacy of power distribution networks throughout the nation. These partnerships ensure the development of a strong power distribution network in the country, contributing to the maintenance of a sustainable energy future.

In September 2024, Al Sharif Group Holding entered into an agreement with Siemens Energy to engage in projects related to high-voltage (HV) and Ultra-high voltage (UHV) transmission systems, direct current high-voltage substations, etc. The partnership will result in an increase in efficiency and reliability for the Saudi Arabian electricity transmission system. The projects will utilize Siemens' highly advanced HVDC technology, which is capable of transmitting power over a long distance with nearly zero power losses.