Electrical Service Industry Analysis in GCC

GCC Electrical Service Industry Outlook from 2024 to 2034

The GCC electrical service industry value reached USD 201.6 million in 2023. Over the forecast period, the value is anticipated to rise at 6.1% CAGR. The sector is predicted to increase from USD 215.3 million in 2024 to USD 388 million in 2034.

Increasing demand for energy-efficient electrical services is driven by rising awareness and regulatory mandates in buildings, industries, and utilities. The growth of electric vehicle infrastructure and charging networks necessitates upgrades to electrical grids, creating new service opportunities for providers.

Attributes	Description
Estimated GCC Electrical Service Industry Size (2024E)	USD 215.3 million
Projected GCC Electrical Service Industry Value (2034F)	USD 388 million
Value-based CAGR (2024 to 2034)	6.1%

The electrical service sector is experiencing rapid changes due to increasing demand for environmentally friendly and energy-efficient solutions. This shift is fueled by the integration of intelligent technologies such as automation and IoT systems, as well as an emphasis on renewable energy sources.

Smart grid technologies are gaining traction, with smart meters, advanced distribution management systems, and self-healing grids becoming prevalent. The sector is set to grow significantly due to increased investments in construction and infrastructure, industrial expansion, energy-efficient solutions, and government support for renewable energy.

Growing demand for smart homes and buildings, adoption of the Internet of Things (IoT), and the installation of renewable energy systems are further escalating growth. Increasing number of commercial and residential buildings is projected to fuel the demand for electrical services.

The landscape for electrical services is further set to be driven by the increasing trend of industrial automation and the need for efficient energy management systems.

Electric vehicles and energy storage systems are expected to create lucrative opportunities for leading producers in GCC. Investments in smart cities and the need for efficient energy management systems are also expected to fuel sales.

Investments in training and education are vital for a skilled workforce capable of handling advanced technologies such as electrical services. Furthermore, demand for efficient data centers all around GCC is also expected to spur development.

Key Industry Highlights

Industry Dynamics Observed in the Electrical Service Sector

GCC countries are promoting renewable energy sources such as solar and wind power, with determined targets for capacity. This has led to increased electrical service software solution demand in GCC for the installation, integration, and maintenance of renewable energy infrastructure.

Increasing emphasis on energy efficiency in residential, commercial, and industrial sectors, including retrofitting buildings with energy-efficient lighting, HVAC, and appliances, is set to fuel demand in GCC.

Smart Grid Technology to Surge Demand through 2034

Smart grid solutions are applied to improve electrical network efficiency, dependability, and flexibility. These technologies enable real-time monitoring, predictive maintenance, and better electricity distribution management, energy conservation, and grid solidity.

Furthermore, the trend toward digitalization and automation in the electrical service landscape uses advanced analytics, IoT devices, and AI to enhance operations and predict equipment failures.

Rising Government Incentives to Reduce Carbon Emissions

GCC countries are encouraging the use of electric vehicles (EVs) to reduce carbon emissions. This involves investing in charging infrastructure, advancing grids, and integrating EVs into the electrical grid. Governments are enacting policies to support electrical service sector growth, including incentives for renewables, energy efficiency standards, and grid safety regulations.

Dependency on Oil Revenues to Hinder Growth

GCC economies have historically relied heavily on oil revenues, which is set to impact government budgets and investment in infrastructure projects, including the electrical service sector. Securing financing for large-scale projects in renewable energy is challenging due to technology uncertainties or regulatory changes, leading to higher costs or limited capital access.

2019 to 2023 Electrical Service Sales Analysis in GCC Compared to Demand Forecast for 2024 to 2034

The electrical service sector grew at a CAGR of 7.7% from 2019 and 2023. The business reached USD 201.6 million in 2023. The electrical service industry in the Gulf Cooperation Council (GCC) countries has evolved significantly, driven by economic development and infrastructural growth.

The sector began its modern trajectory during the oil boom when governments focused on building infrastructure for rapid urbanization and industrialization. Electrical services were essential in this process, including power generation facilities, transmission networks, and distribution systems.

The sector saw a surge in electricity demand, leading to increased investment in electrical infrastructure, upgrading systems, and integrating advanced technologies. During 2019 and 2023, the sector saw local and international providers competing to meet the region's growing energy needs.

Technological advancements, such as smart grid technologies, digitalization of electrical systems, and automation in power generation, have significantly shaped the industry's curve. Governments launched initiatives such as Vision 2030 in Saudi Arabia and Vision 2021 in the UAE, focusing on developing robust, efficient, and sustainable electrical infrastructure to support future of the electrical service and meet urban populations' evolving demands.

The industry is further projected to continue growing as GCC countries pursue economic diversification goals and embrace the global transition toward renewable energy. Focus will likely remain on innovation, sustainability, and resilience, ensuring the sector remains a vital component of the region's development journey. Over the forecast period, the sector is anticipated to rise at 6.1% CAGR.

Industry Concentration

Key companies in the GCC electrical service industry have high production capacity and a diverse product portfolio. They have extensive expertise in manufacturing multiple service types and a strong consumer base.

They offer a wide range of services using the latest technology and meet regulatory standards. Prominent companies within the Tier I segment include Siemens AG, Schneider Electric, General Electric, Honeywell International Inc., and ABB Ltd.

Tier 2 refers to small-scale companies operating locally and serving niche sectors with low revenue, focusing on fulfilling local demands. These players have limited geographical reach and are primarily oriented towards fulfilling local demands. Tier 2 encompasses renowned firms like Larsen & Toubro Limited, Eaton Corporation, Hyosung Corporation, and Petrofac Limited.

Tier 3 refers to small, local, moderately-sized enterprises catering to specific industries, requiring more structured and formalized companies than Tier 1 and Tier 2. Tier 3 firms include Zamil Industrial Investment, Alfanar Group, Lucy Electric, Ducab, and EIC (Electrical Industries Company).

Country-wise Insights

The following table shows the estimated growth rates of the leading sectors. Oman is anticipated to remain at the forefront in GCC, with a CAGR of 8% through 2034. Kuwait is projected to witness a CAGR of 7.9% by 2034, followed by Bahrain at 7.4%.

Countries	CAGR 2024 to 2034
United Arab Emirates	6.9%
Saudi Arabia	6.7%
Kuwait	7.9%
Oman	8%
Bahrain	7.4%

Rising Renewable Energy Projects to Spur Growth in Kuwait

Kuwait is focusing on renewable energy projects to diversify energy mix and reduce reliance on fossil fuels. Large-scale solar projects are gaining traction, driving demand for electrical services related to solar photovoltaic installations, grid integration, and maintenance.

Smart grid technologies are being adopted in Kuwait to enhance the efficiency, reliability, and sustainability of the electrical grid. Smart meters, advanced monitoring systems, and grid automation are being deployed to optimize energy distribution and reduce losses.

Kuwait is improving energy efficiency by upgrading buildings with energy-saving lighting, HVAC, and appliances and implementing systems for optimized electricity usage. By 2034, Kuwait is set to surge at a CAGR of 7.9%.

Rising Government Regulations in Oman to Create Opportunities

The government of Oman is implementing policies and regulations to support the development of the electrical service sector and promote sustainable energy practices. These include incentives for renewable energy projects, energy efficiency standards in buildings, and grid modernization and safety regulations. The country is projected to rise at a CAGR of 8% through the forecast period.

The government in Oman emphasizes the need for reliable and modern electrical services for infrastructure development projects such as residential complexes, industrial zones, and tourism. Digital transformation is a key aspect of the industry, with the adoption of digital technologies, IoT devices, and data analytics improving operations, efficiency, and grid reliability.

Automation in power generation and distribution is gaining momentum in Oman to streamline processes and reduce operational costs. Government highlights the development of local talent and capabilities within the business, through training programs, vocational education initiatives, and partnerships with international companies.

Category-wise Insights

The section below shows the upgradation and maintenance segment dominating based on type. The segment gained significant traction in the sector with a share of 43% in 2023. Based on application, demand from power stations is set to rise as the segment held a share of 38% in 2023.

Power Stations Worldwide to Demand Electrical Services in GCC

Segment	Power Station (Application)
Value Share (2023)	38%

GCC is embracing renewable energy, particularly solar photovoltaic and wind power, to diversify the energy mix, reduce carbon emissions, and improve energy security. Energy storage solutions, such as battery storage, help mitigate renewable energy generation variability. Digitalization and IoT integration are also being adopted by power stations to optimize operational efficiency.

Grid modernization is a key focus, with transmission and distribution infrastructure upgraded to accommodate renewable energy penetration. Decentralized power generation is gaining traction due to environmental regulations and sustainability standards, with smaller-scale stations and distributed energy resources becoming more popular.

Upgradation and Maintenance Services Gain Impetus with Enhanced Asset Performance

Segment	Upgradation and Maintenance (Type)
Value Share (2023)	43%

GCC is embracing advanced technologies for the upgradation and maintenance of electrical infrastructure, such as digital twins and condition monitoring systems. These technologies enable proactive maintenance scheduling, reduce downtime, and optimize asset performance.

Renewable energy integration is gaining traction, with grid systems being modified to accommodate solar and wind power generation. Digitalization and IoT implementation are reshaping upgradation and maintenance types, with IoT devices, sensors, and data analytics platforms monitoring equipment health and detecting potential failures.

Compliance with regulatory requirements and safety standards is vital for the reliability and safety of electrical services. Skills development and training programs are emphasized to equip technicians and engineers with the necessary knowledge for modern electrical systems.

Competition Outlook

Qatar Power Construction WLL, EMCO Qatar, Midmac Contracting Company W.L.L., Siemens, and ABB Group are the key players in the GCC electrical service industry. Leading companies and producers are growing industry reach through mergers, acquisitions, collaborations, and partnerships.

To counter new entrants, leading companies leverage product innovation as a key tool. Collaborations between utilities, technology companies, and startups are becoming more common, allowing companies to combine expertise, resources, and innovative technologies to stay competitive.

The regulatory landscape of the sector is influencing competition, with deregulation opening up opportunities for new entrants. Electrical testing service providers are enhancing customer relationships by partnering with manufacturers to grow the service and testing network. GCC electrical testing service companies are increasing their research and development investments to broaden the service range for precise end-use.

A Few Leading Players

• Qatar Power Construction WLL (QPC) is a prominent Qatar-based company specializing in the design, engineering, procurement, construction, and commissioning of power generation facilities, electrical substations, and transmission networks. QPC adheres to international standards, promotes local talent, and supports Qatar's National Vision 2030.
• EMCO Qatar, a leading electromechanical services provider in Qatar, specializes in engineering, procurement, construction, and maintenance solutions, delivering high-quality projects that meet international standards.
• Midmac Contracting Company W.L.L. is a Qatar-based construction firm renowned for high-profile infrastructure projects, contributing to economic growth and urban development.

Industry Update

• In 2023, Siemens Mobility, based in Germany, acquired Optrail to enhance Train Planning System capabilities worldwide.

Leading Electrical Service Brands in GCC

• Qatar Power Construction WLL
• EMCO Qatar
• Midmac Contracting Company W.L.L.
• Siemens
• ABB Group
• Eaton Corporation plc
• Arabian Bemco Contracting Co. Ltd.
• Saudi Electricity Company
• Voltamp Energy SAOG
• Tamimi Energy Holding Company
• Saudi Aramco Power Company (SAPCO)
• Nesma Co.
• Schneider Electric

Key Segments of Industry Report

By Type:

As per types, the industry has been categorized into design and construction, installations and commissioning, and upgradation and maintenance.

By Application:

Based on applications, the sector is segmented into lighting, power station, sub-station, and transmission systems.

By End-user:

In terms of end-users, the sector is split into residential, commercial, and industrial.

By Country:

Industry analysis has been carried out in key countries such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

Frequently Asked Questions

What is the future of the electrical service industry in GCC?

The sector is set to witness a CAGR of 6.1% through 2034.

What was the worth of the sector from 2019 to 2023?

The sector witnessed a CAGR of 7.7% from 2019 to 2023.

How big is the GCC electrical service industry?

In 2034, the sector is anticipated to reach USD 388 million.

Who are the leading manufacturers?

Qatar Power Construction WLL, EMCO Qatar, and Midmac Contracting Company W.L.L.

Is there a business for electrical services?

The sector is set to reach USD 215.3 million by 2024.

Which type would lead the industry?

The upgradation and maintenance segment is set to dominate by 2024.