Saudi Arabia Superconducting Magnetic Energy Storage Market: Grid Stability, Renewable Integration & Growth Outlook

Saudi Arabia’s energy landscape is shifting fast. As the Kingdom scales up solar and wind capacity under Vision 2030, the need for fast-responding, reliable energy storage has never been more urgent. Superconducting Magnetic Energy Storage (SMES) is emerging as a strong contender — valued for its near-instant response times and long operational life. According to IMARC Group’s latest data, the The Saudi Arabia superconducting magnetic energy storage market size reached USD 621.3 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 1260.8 Million by 2034, exhibiting a growth rate (CAGR) of 8.18% during 2026-2034.

The SMES market in Saudi Arabia is gaining real momentum, driven by bold government policy, rapid renewable energy expansion, and growing demand for grid reliability across commercial, industrial, and urban sectors. Vision 2030’s target of 50% electricity from renewables creates genuine challenges around grid stability and power quality that conventional storage alone cannot solve. SMES systems — with their ability to store and release energy almost instantly — are being actively evaluated as part of the country’s broader smart grid strategy. Key market segments include type (low-temperature and high temperature), component (superconducting coil, power conditioning system, cryogenics system, and control and monitoring system), and application (power system, industrial use, research institutions, and others), with growing interest from both the public sector and private energy developers.

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Saudi Arabia Superconducting Magnetic Energy Storage Market Growth Drivers:

• Renewable Energy Expansion Driving Grid Storage Demand

Saudi Arabia is targeting 50% of its electricity from renewables and expanding total generation capacity to 130 GW, including 58.7 GW from solar. As wind and solar projects scale up, the grid faces growing intermittency challenges that conventional storage cannot always handle fast enough. SMES systems, capable of responding in milliseconds, are a practical fit for stabilizing large renewable inputs. The Saudi Power Procurement Company has already tendered 2 GW of battery storage under its first phase, signaling strong institutional appetite for advanced energy storage solutions at national scale.

• Vision 2030 Smart Grid Modernization and Infrastructure Investment

The Kingdom has committed USD 270 billion toward clean energy infrastructure under Vision 2030, with significant investment directed at grid modernization. Saudi Electricity Company (SEC) is deploying nine AI-powered control centers and has reached 40% distribution automation. These smart grid upgrades create a natural entry point for SMES, which pairs well with digital substations and real-time grid management systems. In early 2025, SEC conducted a feasibility review of next-generation storage options, including SMES, as part of its smart grid roadmap — a clear signal the technology is moving from research interest to active procurement consideration.

• Rising Industrial and Mission-Critical Power Reliability Requirements

As Saudi Arabia diversifies its economy through giga-projects like NEOM, industrial cities, and expanding data center infrastructure, demand for uninterrupted, high-quality power is rising sharply. SMES systems are particularly well-suited for mission-critical environments where even brief power interruptions carry significant operational costs. NEOM alone is expected to require between 5 and 10 GWh of energy storage capacity. Industrial facilities and research institutions across Riyadh, Jeddah, and Dammam are increasingly being assessed for advanced storage integration, driving practical awareness and pilot-level activity around SMES as a premium power reliability solution.

Saudi Arabia Superconducting Magnetic Energy Storage Market Trends:

• High-Temperature Superconducting (HTS) Technology Gaining Commercial Ground

A meaningful shift is underway in SMES technology — from legacy low-temperature systems to high-temperature superconducting (HTS) magnets, which operate more efficiently and require simpler cooling infrastructure. In September 2024, Tokamak Energy launched TE Magnetics to commercialize HTS magnet technology, targeting grid stabilization and power systems. Their REBCO-based magnets use 99% less rare earth material than conventional alternatives, making large-scale deployment more viable. Tokamak Energy holds an active strategic partnership with King Abdulaziz City for Science and Technology (KACST) in Saudi Arabia, directly positioning this innovation within the Kingdom’s energy technology market.

• Academic Research and Local Innovation Partnerships Expanding

Saudi universities and national research bodies are increasingly funding energy storage research, including superconducting systems. A regional university announced dedicated funding for SMES-based grid modeling projects in 2025, while a local research institution partnered with a global energy technology firm to explore SMES integration across designated pilot zones. These collaborations build local technical expertise, validate use cases under Saudi operating conditions, and lay the groundwork for supply chain localization — goals that align well with Vision 2030’s industrial diversification agenda and the country’s ambition to reduce dependence on imported energy technologies over time.

• Government Pilot Programs Accelerating Technology Adoption

Beyond broad policy commitments, Saudi Arabia is taking structured steps to evaluate advanced storage in real-world conditions. The national grid operator reviewed SMES alongside other next-generation storage technologies for grid reliability purposes in late 2024 — moving the conversation from theoretical interest to formal feasibility assessment. This pattern closely mirrors what has preceded broader procurement cycles in other mature energy markets. As pilot results mature and feed into national energy planning discussions, SMES is likely to feature more prominently in future grid investment decisions, particularly where sub-second response times and long-life, low-maintenance operation are required.

Recent News and Developments in Saudi Arabia Superconducting Magnetic Energy Storage Market

• September 2024: Tokamak Energy launched TE Magnetics, a dedicated commercial division focused on high-temperature superconducting (HTS) magnet technology. These energy-efficient, quench-safe HTS magnets — with simpler cooling needs and significantly reduced rare earth material use expanded deployment possibilities for superconducting magnetic energy storage, potentially boosting adoption and innovation in Saudi Arabia’s market.
• June 2023: Bilfinger Noell partnered with Proxima Fusion to support the development of high-temperature superconducting magnets for stellarator-based fusion energy systems. This collaboration advanced industrial manufacturing capabilities in superconducting magnet systems, positively impacting Saudi Arabia’s superconducting magnetic energy storage market by fostering innovation and enabling future energy storage integration.

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