Saudi Arabia LED Light Market to Reach SAR 30.04 Billion by 2034

The Saudi Arabia LED light market is poised for growth, driven by government initiatives promoting energy efficiency and infrastructure projects. Opportunities lie in public infrastructure upgrades, smart lighting solutions, and residential retrofits to reduce electricity consumption. The market benefits from a favorable regulatory environment and advances in IoT technologies.

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.

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.

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

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.