Globally, regulations and awareness campaigns help in reducing inefficient lighting; incandescent lighting is in the process of being phased out. This has resulted in opening up opportunities for LED lighting, which is now seeing widespread adoption, backed by declining prices of LED packages, lamps and other forms of illumination. Changes in technology and the industry are expected to result in a wave of consolidation among established players in the Lighting Industry - M&As and collaborations set to increase, as start-ups create pressure on incumbents. This Industry Docket serves as guide not just for companies already present in the market, but also for those that seek to enter it.
Key questions this Industry Docket will answer:
- What are global trends in lighting industry? How will they impact the market in the KSA?
- What are the latest technologies and how are they expected to be implemented in the KSA?
- What are the key factors influencing the lighting market in the KSA?
- How is the market expected to grow; What are the key areas of growth opportunities?
- What are the prospects for manufacturing of lighting in the KSA?
1. Scope & Limitations
- The Global Story – LED set to define the future of lighting…
- … The KSA LED lighting market is set to become a USD 1.6 Billion industry by 2021
- CEO Spotlight for LED lighting: Short to medium term portfolio share to be more than 50%; explore feasibility of local manufacturing of LED fixtures…
3. Global & KSA Brief
- Asia is the largest emerging market for lighting globally, reflecting rapid growth that is set to cross the USD 100 Billion market in 2021
- The KSA market for lighting will present opportunities for local manufacturing, in the process of undergoing disruption
- The GCC Lighting Market: On-going construction, especially mega projects spurring regional growth against global performance where energy efficiency is the need of the hour
- As domestic companies seek competitiveness through value add, procurement processes should be in place to mitigate complexities in the supply chain
4. Market Outlook: the KSA
- Market import driven: almost ~65% is catered through trade. Significant opportunity & potential for local value add through assembly & manufacturing
- Push for energy efficiency driving sales of LED lighting in a high growth market. We foresee an investment conducive market environment for LED lighting
- Improving performance and steady fall in prices is facilitating mass-market LED adoption in the KSA
- Market was significantly driven by Government-led investments in 2016 - this dependency to continue in the near future
- The move towards LED lighting mandates a shift in market approach: from product sales to solution selling, spanning across both retail & projects routes
- The Projects market is dominated by Lighting Fixtures, which is best approached through a systems integration route
- Domestic companies hold an edge in the Projects market for lighting, due to local experience, capability and access to manpower
- GenNext in KSA is influencing the retail trend in lighting; Suppliers diversifying into home automation and connected lighting solutions
- Inventory levels to be maintained to match customer requirements and market trends
- Opportunities for local manufacturing range across accessories, outdoor lighting, & indoor professional fixtures; provides a base for differentiating against imports
- Strong consultant & developer influence in LED lighting value chain leads to value-based purchase decision vs. conventional lighting’s price-based decisions
- New tech solutions will present highest avenues for growth; need to develop demand by educating influencers
5. Mega Trends & Transformational Shifts
- LED’s past evolution driven by Sustainability & Efficiency. Moving forward, many other Transformational Shifts to shape the Future of Lighting
- Need for Automation and Integration in implementing lighting solutions will drive the way the market shapes up
6. The Industry going Forward
- LEDs are witnessing usage across multiple applications beyond illumination; this promises a robust future for the technology
- Wi-Fi to become history, thanks to “li-fi”
- Lighting as the Smart City Backbone
- Product-as-a-Service Focus: Going downstream into Light as a Service (LaaS) as a business model
- Examples of Visionary Initiatives by Lighting Companies driving “Digitilisation” of Light
- Trends are manifesting into opportunities and commercialisation, seen in the emergence of new projects / pilots in the region, too
7. Annexure: Our Services
- Maximise opportunities from existing products and markets; systematically explore new products, markets, including inorganic Opportunities
- Our Growth Consulting Canvas
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