Saudi Arabia LED Light Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The Saudi Arabia LED light market value reached around SAR 6.14 billion in 2024. due to the promotion of LED lights by Saudi government. Initiatives such as the replacement of all streetlights with energy-efficient LEDs aim to reduce electricity consumption by 70-75%, significantly contributing to the Kingdom's goal of producing 50% renewable electricity by 2030. Rapid infrastructure development, with around 4,700 construction projects valued at approximately USD 852.3 billion, are also driving demand for advanced lighting solutions in both residential and commercial sectors. As a result, the industry is expected to grow at a CAGR of 17.20% during the forecast period of 2025-2034 to attain a value of SAR 30.04 billion by 2034.

Saudi Arabia LED Light Market Growth

While Saudi Arabia’s oil reserves are abundant, the Kingdom of Saudi Arabia (KSA) has been confronted by the problem of energy waste in recent years due to energy-efficient household appliances. Residential electricity accounts for 80% of KSA’s electricity consumption. Thus, the Saudi government has been pushing energy-saving initiatives, which have been exemplified by a large-scale installation of LED lighting systems in private and public buildings. This has resulted in growth of the Saudi Arabia LED light market. Moreover, Saudi Arabia imported LED lighting products from China worth USD 87.37 million in 2016 which was an increase of almost 40% over the same period from the previous year. In addition, the rising focus on conserving energy and reducing inefficient lighting is also transforming the market.

Wider adoption of LED, reduced illumination package prices, and technology trends such as dynamic lighting, adjustable white light, and wireless control systems are all factors fuelling Saudi Arabia LED light market revenue. Intelligent street lighting and integrated lighting solutions that use remote monitoring, and street lighting management systems are also being tried out. Increased use of Internet of Things, indoor lighting automation, “Li-fi”, and Lighting-as-a-Service are trends anticipated to drive the Saudi Arabia market in years to come.

Key Trends and Developments

Rising demand for smart lighting solutions, increasing awareness of eco-friendly practices, and favourable government regulations are the key trends fuelling the market growth.

September 2024

Saudi Arabia's Vision 2030 initiative has launched real estate and infrastructure projects valued at USD 1.3 trillion over the past eight years, reflecting a 4% increase from the previous year. Key developments include Neom, which has received USD 28.7 billion in funding, and other significant projects like Diriyah Gate and Qiddiya. The Kingdom aims to enhance living standards, with a goal of attracting USD 100 billion in foreign direct investment by 2030. Riyadh is also set to see substantial growth, adding nearly 29,000 hotel rooms and extensive office space by decade’s end. The overall construction efforts can boost tourism, attract 150 million visitors annually by 2030, and positively impact LED light demand forecast in Saudi Arabia.

June 2024

Saudi Arabia is set to become the first G20 country to replace all streetlights with energy-saving LEDs, as announced by Mohammed Muaafa from the National Energy Services Co. This initiative aims to significantly reduce electricity consumption by 70-75% and aligns with the Kingdom's goals of producing 50% renewable electricity by 2030 and achieving net-zero emissions by 2060. These efforts propel Saudi Arabia LED light market value as installation of LEDs help enhance energy efficiency across commercial and residential projects in Saudi Arabia.

June 2022

The Saudi Ministry of Transport and Logistics has launched the first phase of a project to replace 17,000 traditional streetlights with energy-saving LED lights across several regions, including Jeddah and Madinah. This initiative aims to significantly reduce electricity consumption by over 60%, saving approximately 104 million kilowatts annually and avoiding 68,000 tonnes of carbon emissions. The project aligns with Saudi Arabia's National Strategy for Transport and Logistics Services, enhancing road quality and promoting sustainable energy sources.

April 2021

The National Energy Services Company (NESCO) announced plans to replace 74,000 streetlamps in Riyadh with energy-efficient LED lights. This initiative aims to reduce power consumption by more than 70% and avoid over 48,000 metric tonnes of carbon emissions, equivalent to planting approximately 800,000 trees.

Rising Demand for Smart Lighting Solutions

There is a growing trend in the Saudi Arabia LED light market towards smart lighting solutions, driven by advancements in Internet of Things (IoT) technology. Smart LED lights, which offer features like remote control, automation, and energy monitoring, are becoming more popular among consumers and businesses. For example, in cities like Riyadh and Jeddah, smart lighting systems have been integrated into urban infrastructure projects, resulting in energy savings of up to 40% for municipalities. This trend is expected to significantly increase the uptake of LED lighting products, especially in commercial spaces where energy management is crucial.

Increasing Awareness of Eco-Friendly Practices

The increasing awareness of sustainability and environmental conservation is influencing Saudi Arabia LED light market dynamics and trends. Many businesses are adopting eco-friendly lighting solutions to reduce their carbon footprint. For instance, in the hospitality sector, hotels have reported a decrease in energy costs by approximately 20-30% after switching to LED lighting. This shift not only helps in cutting down operational costs but also aligns with the global movement towards sustainable practices.

Favourable Regulatory Frameworks

Saudi government has implemented various regulations to promote energy efficiency. For instance, the Saudi Energy Efficiency Program aims to reduce electricity consumption by up to 30% across various sectors, pushing for widespread adoption of LED lighting. In 2020, the government also mandated the use of LED technologies in all new municipal and commercial projects, which has accelerated LED light demand in Saudi Arabia.

Technological Advancements

Technological advancements in LED technology are further shaping the market dynamics. Innovations such as smart LED lighting, which integrates IoT capabilities for remote control and automation, are becoming increasingly popular. For example, usage of smart street lighting projects in cities like Riyadh are expected to cut energy costs by up to 40%. These lights are equipped with control and monitoring units that allow for remote management, reducing energy costs and improving maintenance efficiency.

Saudi Arabia LED Light Market Trends

The Saudi Arabian government is increasingly promoting energy-efficient lighting solutions as part of its Vision 2030 initiative. This includes regulations mandating the use of LED lights in both residential and commercial sectors. For instance, the Saudi Energy Efficiency Program (SEEP) aims to reduce electricity consumption by encouraging the adoption of LEDs, targeting a reduction of up to 30% in energy usage in government buildings alone. These initiatives not only enhance energy efficiency but also support the local manufacturing sector as several factories are being established to produce LED products domestically.

Opportunities in Saudi Arabia LED Light Market

One major opportunity lies in the transition of public infrastructure to LED lighting, with municipalities aiming to upgrade streetlights and public spaces. For instance, the Riyadh municipality has embarked on a project to replace over 100,000 streetlights with energy-efficient LEDs to reduce energy consumption by approximately 50%, which is expected to provide a favourable Saudi Arabia LED light market outlook.

Additionally, the residential sector is seeing increased demand for LED retrofit solutions as homeowners want to lower electricity bills and carbon footprints. As the Saudi government is targeting a reduction in peak electricity demand by around 30% by 2030, the market for LED lighting is projected to expand significantly. Moreover, with an increase in construction activities (estimated at 1,500 new residential projects in the coming years), the demand for LED lighting in new developments presents a lucrative opportunity for manufacturers and suppliers.

Saudi Arabia LED Light Market Restraints

One significant restraint is the initial high cost of LED lighting solutions compared to traditional lighting options, which can deter consumers, particularly in the residential sector. Although LEDs offer long-term savings, the upfront investment remains a hurdle for many households and small businesses. For example, while LED bulbs can reduce electricity bills by up to 80%, the initial purchase price can be three to five times higher than incandescent bulbs, leading some consumers to opt for cheaper alternatives.

Additionally, there is a lack of widespread awareness about the benefits of LED technology, especially in rural areas where traditional lighting solutions are still prevalent. As per Saudi Arabia LED light market analysis, around 30% of the population do not fully understand the long-term cost benefits of switching to LEDs, limiting market growth. Furthermore, competition from lower-cost non-LED lighting solutions imported from other countries can undermine local LED manufacturers, making it challenging for them to establish a significant market share.

Saudi Arabia LED Light Industry Segmentation

“Saudi Arabia LED Light Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Panel Lights
• Down Lights
• Flood Lights
• Street Lights
• Tube Lights
• Bulbs

Market Breakup by Application

• Residential
• Commercial
• Industrial
• Others

Market Breakup by Sector

• Private
• Public

Saudi Arabia LED Light Market Share

Market Insights by Type

Panel lights are increasingly popular in both commercial and residential sectors due to their sleek design. For instance, the King Abdulaziz Centre for World Culture features extensive LED panel lighting. Recent statistics show that panel lights can reduce energy consumption by up to 50% compared to traditional fluorescent lighting, which can segment’s growth.

Flood lights are witnessing robust growth in Saudi Arabia LED light market, particularly for outdoor applications like sports facilities and public parks. The recent upgrade of public parks in cities like Jeddah has involved the installation of energy-efficient flood lights, resulting in energy savings of approximately 30%. Furthermore, the Saudi Ministry of Municipal and Rural Affairs has announced plans to replace outdated outdoor lighting with LEDs to improve safety and reduce costs.

Down lights are favoured for their versatility in various settings, including homes, retail spaces, and hotels. As per the Saudi Arabia LED light industry analysis, the shift towards smart home technology has driven demand for smart down lights that can be controlled via mobile apps. Recent examples include the Riyadh Metro project, which integrates advanced LED down lighting systems to improve functionality, aesthetic appeal, and energy efficiency by up to 40%.

Lastly, LED streetlights segment is growing rapidly because traditional streetlights are being replaced with energy-efficient LEDs to improve urban energy efficiency. As per industry reports, the smart street lighting project in Riyadh aims to install over 100,000 smart streetlights. Recent reports also highlight that municipalities are saving up to 30% on their electricity bills due to LED installations, further increasing Saudi Arabia LED market value.

Market Insights by Application

The residential segment is witnessing significant growth, driven by increasing consumer awareness of energy efficiency and cost savings. As per industry reports, around 6.6 million residential units are currently present in the country and many households have switched to LED tube lights and bulbs to save up to 80% on their electricity bills. Government initiatives, such as incentives for purchasing energy-efficient products, have further encouraged this shift. For example, the Saudi Green Initiative aims to promote the adoption of sustainable practices in homes, leading to a 25% rise in LED bulb sales, driving Saudi Arabia LED market growth.

The industrial sector is another significant sector driving LED adoption. Industries are increasingly investing in LED lighting to enhance energy efficiency and reduce operational costs. Recent projects, such as the retrofitting of factories in the Eastern Province, have demonstrated energy savings of up to 50%. With approximately 1,500 industrial units operating in the country, the Saudi Arabia LED light market opportunities are also growing.

Moreover, the country has around 1.4 million commercial units, and businesses, particularly in retail and hospitality, which are transitioning to LED lighting to improve energy efficiency and create appealing environments for customers. Recent developments include the integration of smart LED lighting in luxury hotels and shopping malls in Riyadh, which have reported energy savings of around 30%.

Market Insights by Sector

Significant investments in public and private infrastructure along with the efforts of the government to encourage LED use are driving the Saudi Arabia LED light market share. To promote LED lights, the Saudi Arabian government has adopted global energy efficiency standards and increased tariffs on imports of incandescent and compact fluorescent lights. There are nearly 4,700 reported construction projects underway in Saudi Arabia, the estimated value of which is USD 852.3 billion. More than 3,300 projects under the urban construction sector comprise nearly 70% of all construction activities in the Kingdom and are driven by the steadily rising Saudi population and urbanisation trends.

Furthermore, following the Deputy Crown Prince Mohammad bin Salman Al Saud’s Kingdom’s Vision 2030 plan, Saudi Arabia has planned to upgrade infrastructure in 285 municipalities before 2030, which will boost Saudi Arabia LED light industry revenue as well. Building new cities would permit energy-efficient and smart lighting technologies to be directly built into industrial, commercial and infrastructure developments as compared to retrofitting existing systems, giving LED lighting solutions more opportunities to replace conventional lighting. Additionally, the Saudi Ministry of Municipal and Rural Affairs has launched programs to upgrade lighting in parks and public spaces, resulting in savings of about 30% in electricity costs.

Innovative Start-ups in Saudi Arabia LED Light Market

Start-ups are developing smart lighting systems that integrate IoT technology for automation and remote control, catering to both residential and commercial sectors. Additionally, some start-ups are focusing on domestic manufacturing to reduce costs and improve supply chain efficiency. By addressing these areas, start-ups aim to capture a share of the growing Saudi Arabia LED light market driven by government initiatives and increasing consumer awareness of energy savings. Some of these start-ups are:

Al-Falak Lighting, founded in 2010 and headquartered in Riyadh, Saudi Arabia, provides energy-efficient lighting solutions. The company has achieved significant success by focusing on innovative designs and sustainable technologies. Al-Falak has developed a wide range of LED products for commercial, industrial, and residential applications. Their notable achievements include securing contracts for large-scale municipal lighting projects, which have helped reduce energy consumption in urban areas by over 30%.

LED Solutions, founded in 2015 and based in Jeddah, Saudi Arabia, has quickly emerged as a key player in the Saudi Arabia LED light market landscape by providing high-quality lights. Its achievements include partnerships with major retail chains like Panda Retail Company and Carrefour, where LED Solutions has installed energy-efficient lighting systems across multiple stores. Additionally, the company has been involved in large-scale infrastructure projects such as King Abdulaziz International Airport and the Jeddah Corniche Development.

Competitive Landscape of Saudi Arabia LED Light Market

Market players are primarily focused on energy efficiency and sustainability, aligning with government initiatives like Vision 2030. They are investing in technological advancements, such as smart lighting solutions and IoT integration, to enhance product offerings. Additionally, companies are targeting the residential, commercial, and industrial sectors to meet rising demand of infrastructure projects. They are also focusing on product quality and complying with international energy standards.

Saudi Led Light Co.

Saudi Led Light Co. was founded in 2010 and is headquartered in Jeddah, Saudi Arabia. Specialising in LED lighting solutions, the company’s focus aligns with trend of sustainable practices and energy efficiency. They offer a wide range of products for residential, commercial, and industrial applications.

National Lighting Company

National Lighting Company was founded in 1993 and is headquartered in Dammam, Saudi Arabia. It is a leading manufacturer of lighting fixtures, including indoor and outdoor solutions. They are ISO accredited and focus on high-quality products that meet international standards for safety and efficiency.

TECHNO LED LIGHTS

TECHNO LED LIGHTS was founded in 2015 and is headquartered in Riyadh, Saudi Arabia. The company being a key player in Saudi Arabia LED light market, provides a wide variety of lighting products to both residential and commercial markets.

Al Nasser Group

Al Nasser Group was founded in 1980 and is headquartered in Riyadh, Saudi Arabia. It is involved in diverse sectors including manufacturing and trading of electrical and lighting products. They focus on providing innovative and energy-efficient lighting solutions, contributing to the country's infrastructure development.

Other Saudi Arabia LED light market players include Inara Company Limited, Nardeen Lighting Company LLC, Huda Lighting, and Philips Saudi Lighting Company, among others.