KSA Green Technology Sustainability Market Outlook to 2028

KSA Green Technology Sustainability Market Overview

The KSA Green Technology Sustainability Market was valued at USD 5.5 billion in 2023, driven by the Kingdom's Vision 2030 initiative, which emphasizes sustainability and environmental responsibility. The growing awareness of environmental conservation, along with government support for green technologies, has accelerated market growth.

Major players in the KSA Green Technology Sustainability Market include ACWA Power, Saudi Aramco, SABIC, and First Solar. These companies dominate the market through extensive investment in sustainable technologies, strategic partnerships, and innovation in renewable energy, water management, and waste reduction solutions.

Regions such as Riyadh, Eastern Province, and Makkah lead the market due to high urbanization rates, substantial industrial bases, and strong government initiatives aimed at promoting sustainability and reducing carbon footprints.

In March 2024, ACWA Power, along with its partners, reached financial closure on the Al-Shuaibah solar projects, which include two main components: Al Shuaibah 1 and Al Shuaibah 2.The total capacity of these projects is approximately 2.63 GW, Specifically, Al Shuaibah 1 has a capacity of 600 MW, while Al Shuaibah 2 has a capacity of 2.03 GW, making the combined total 2.63 GW.

KSA Green Technology Sustainability Market Segmentation

The KSA Green Technology Sustainability Market is segmented by product, application, and region.

By Product: The market is segmented into Solar Energy Solutions, Wind Energy Solutions, Water Treatment Technologies, Waste Management Technologies, and Others. In 2023, Solar Energy Solutions held the dominant market share, driven by the country's abundant solar resources and government-backed solar energy projects. Companies like ACWA Power and First Solar are key players in this segment, offering a wide range of solar energy products and services tailored to various applications.

By Application: The market is segmented by application into Energy Production, Water Management, Waste Management, and Sustainable Agriculture. The Energy Production segment led the market in 2023, due to the growing adoption of renewable energy sources such as solar and wind to meet the country's rising energy demands and reduce greenhouse gas emissions.

By Region: The market is segmented by region into Central, Eastern, Western, and Northern KSA. The Central region, particularly Riyadh, dominates the market in 2023 due to strong governmental policies, high industrialization rates, and substantial investment in green technologies. This region's economic strength and supportive policies further contribute to market growth.

KSA Green Technology Sustainability Market Competitive Landscape

Company

Establishment Year

Headquarters

ACWA Power

2004

Riyadh, Saudi Arabia

Saudi Aramco

1933

Dhahran, Saudi Arabia

SABIC

1976

Riyadh, Saudi Arabia

First Solar

1999

Tempe, Arizona, USA

Water & Environment Technologies Co.

2001

Dammam, Saudi Arabia

SABIC: In January 2024, SABIC announced a new initiative focused on recycling plastics, aiming to convert up to 100,000 tons of plastic waste into reusable materials by 2028. This initiative is part of SABIC's commitment to sustainability and innovation, aligning with its broader goals to enhance circular economy practices and reduce environmental impact through advanced recycling technologies.

Saudi Aramco: In February 2024, Saudi Aramco announced advancements in its emissions reduction initiatives, including a partnership with Topsoe to build a lower-carbon hydrogen demonstration plant in Shaybah, with a capacity of six tons of hydrogen per day. Additionally, Aramco is collaborating with Siemens Energy to develop a Direct Air Capture unit in Dhahran, aiming to capture up to 12 tons of CO2 annually.

KSA Green Technology Sustainability Market Analysis

Growth Drivers

Increased Government Investments in Renewable Energy Projects:
The KSA Green Technology Sustainability Market is heavily driven by the Saudi government's substantial investment in renewable energy projects. In 2024, the government allocated USD 7 billion towards the development of solar and wind energy projects as part of the National Renewable Energy Program (NREP). The Al Shuaibah solar project, which includes Al Shuaibah 1 and Al Shuaibah 2, has a combined capacity of 2.63 GW and is part of Saudi Arabia's efforts to enhance its renewable energy infrastructure. The projects are expected to start commercial operations in 2025.

Rising Demand for Water Treatment and Conservation Technologies: Saudi Arabia faces noteworthy water scarcity challenges, with annual water consumption exceeding 5 billion cubic meters, of which majority is sourced from desalination. The Ministry of Environment, Water and Agriculture announced an allocation of USD 80 billion towards water projects within the coming years. The focus is on advanced technologies like reverse osmosis and wastewater recycling, aiming to improve water use efficiency and sustainability. The new funding aligns with the National Water Strategy 2030, which seeks to enhance water security and promote sustainable water management practices across the Kingdom.

Growth in Waste Management Initiatives and Circular Economy Practices:
The adoption of circular economy practices is gaining momentum in Saudi Arabia, driven by the increasing need for sustainable waste management solutions. In 2023, the Saudi Investment Recycling Company (SIRC) committed to establish integrated waste management facilities across Riyadh, Jeddah, and Dammam. This initiative supports the Vision 2030 objective of achieving environmental sustainability through efficient waste management and resource optimization, thus driving the growth of the green technology market.

Challenges

High Initial Costs of Green Technology: The adoption of green technology solutions often involves high initial costs, which can be an important barrier for many companies and industries. The cost of installing renewable energy systems, water treatment facilities, and waste management solutions can be prohibitive, particularly for small and medium-sized enterprises.

Regulatory Compliance and Market Uncertainty: The KSA Green Technology Sustainability Industry faces challenges due to regulatory and policy uncertainties. Although there are numerous initiatives to promote green technologies, inconsistencies in regulatory frameworks and delays in policy implementation can create a complex environment for businesses.

Government Initiatives

Vision 2030 and Green Riyadh Project: The Vision 2030 initiative, along with the Green Riyadh project, aims to increase the number of green spaces, promote sustainable urban planning, and enhance air quality. The government has also announced plans to plant millions of trees across the Kingdom to combat desertification and improve urban living conditions.

Introduction of the Circular Carbon Economy Framework: In 2024, Saudi Arabia implemented the Circular Carbon Economy (CCE) framework, which seeks to manage and reduce carbon emissions through a comprehensive approach of reduce, reuse, recycle, and remove. This framework aims to minimize carbon emissions by enhancing energy efficiency, reusing captured CO2 for valuable products, recycling carbon through natural processes, and removing excess carbon from the atmosphere.

KSA Green Technology Sustainability Market Future Outlook

The KSA Green Technology Sustainability Market is expected to witness robust growth, driven by increasing government support, technological advancements, and growing awareness of environmental conservation. The ongoing shift towards a more diversified economy and the reduction of carbon footprints are likely to propel the market further.

Future Market Trends

Expansion of Green Building Initiatives: By 2028, green building technologies are expected to account for a substantial share of the market, driven by rising consumer demand for energy-efficient and environmentally friendly buildings. Companies are focusing on developing innovative green building materials and technologies to cater to a growing demand for sustainable urban development.

Increased Investment in Water Reuse and Recycling Technologies: As water scarcity becomes a more pressing issue in the Middle East, investment in water reuse and recycling technologies is expected to increase. This trend will be driven by advancements in desalination and water treatment technologies, along with government mandates for sustainable water management.
Please Note: It will take 5-7 business days to complete the report upon order confirmation