Saudi Arabia Energy Efficiency Retrofits Market Overview

Market Growth Rate 2025-2033: 6.90%

According to IMARC Group's latest research publication, "Saudi Arabia Energy Efficiency Retrofits Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Saudi Arabia energy efficiency retrofits market is projected to exhibit a growth rate (CAGR) of 6.90% during 2025-2033. The market is expanding due to public sector upgrades in education and logistics, growing adoption of smart systems, and alignment with Vision 2030 sustainability goals.

How AI is Reshaping the Future of Saudi Arabia Energy Efficiency Retrofits Market

• Optimizing Building Energy Management Systems: AI-powered Building Management Systems (BMS) are revolutionizing energy efficiency retrofits through real-time monitoring and predictive analytics, reducing energy consumption by 25-30% while optimizing HVAC operations, lighting controls, and power distribution across commercial and institutional buildings aligned with Vision 2030 sustainability objectives.
• Enhancing Predictive Maintenance Capabilities: Machine learning algorithms are transforming maintenance strategies for retrofitted systems through IoT sensor integration and predictive analytics, reducing equipment downtime by 35-40% while extending asset lifecycles and minimizing costly emergency repairs across educational, healthcare, and logistics facilities throughout the Kingdom.
• Smart Lighting and Occupancy Optimization: AI-integrated lighting systems combined with motion sensors and occupancy detection are revolutionizing energy savings in retrofitted buildings, reducing lighting energy consumption by 40-50% through adaptive learning algorithms that optimize illumination based on natural light availability, occupancy patterns, and user preferences.
• Automated Energy Auditing and Performance Monitoring: Advanced AI-driven analytics platforms are streamlining energy auditing processes and continuous performance monitoring, improving audit accuracy by 30-35% while enabling real-time identification of efficiency opportunities and automated reporting for compliance with Saudi Energy Efficiency Center (SEEC) standards.
• Intelligent HVAC Control and Climate Optimization: Machine learning models are optimizing HVAC system performance in retrofitted facilities through weather forecasting integration, occupancy prediction, and thermal comfort modeling, reducing cooling energy consumption by 20-25% while maintaining optimal indoor environmental quality in Saudi Arabia's extreme climate conditions.

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Saudi Arabia Energy Efficiency Retrofits Market Trends & Drivers:

Saudi Arabia's energy efficiency retrofits market is experiencing robust growth driven by the government's Vision 2030 sustainability initiatives and the Saudi Green Initiative, with Tarshid (National Energy Services Company) achieving approximately 7 terawatt-hours of energy savings by the end of Q1 2024. The government's commitment to reducing carbon emissions and optimizing resource consumption is accelerating retrofitting projects across public educational institutions, healthcare facilities, and government buildings, with initiatives aimed at upgrading legacy infrastructure to international energy efficiency standards.

The expansion of retrofitting activities in the logistics and transportation sectors is creating significant market opportunities, with landmark agreements such as SAL Logistics' partnership with Tarshid Energy Solutions in July 2024 to implement energy retrofits across logistics facilities. The logistics sector's growing focus on operational efficiency and ESG commitments is driving adoption of high-efficiency technologies including LED lighting, advanced HVAC systems, and smart building management solutions that deliver substantial reductions in energy consumption and operational costs.

Saudi Arabia Energy Efficiency Retrofits Industry Segmentation:

The market report offers a comprehensive analysis of the segments, highlighting those with the largest Saudi Arabia energy efficiency retrofits market share. It includes forecasts for the period 2025-2033 and historical data from 2019-2024 for the following segments.

The report has segmented the market into the following categories:

Product Insights:

• Envelope
• HVAC
• LED Lighting
• Appliances

Application Insights:

Residential:

• Single-Family
• 2+ Unit Building
• Mobile Home

Commercial:

• Food Sales & Service
• Lodging
• Mercantile
• Office Buildings
• Public Assembly
• Warehouse/Storage
• Others

Institutional:

• Education
• Healthcare
• Public Order & Safety
• Worship Buildings

Breakup by Region:

• 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.

Recent News and Developments in Saudi Arabia Energy Efficiency Retrofits Market

• September 2025: Tarshid launched an energy retrofit project at Yanbu University College covering 13 buildings, aiming to reduce electricity usage by 16% through advanced lighting systems, motion-sensing controls, and upgraded cooling technologies, reflecting Saudi Arabia's commitment to upgrading educational facilities to international energy efficiency standards.
• July 2025: SAL Logistics signed an MoU with Tarshid Energy Solutions to introduce energy retrofits across its facilities, focusing on conducting audits and implementing high-efficiency technologies to reduce energy consumption and improve operational performance across logistics operations, demonstrating private sector alignment with national energy targets.
• 2025: Tarshid through its subsidiary signed a contract with Saudi Arabia Railways (SAR) to implement energy-saving measures in SAR's headquarters building and Riyadh North Station facilities, with estimated annual energy savings of approximately 7 GWh, totaling 105 GWh over the project's lifespan through chiller control systems and variable speed drives implementation.

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