Published: September 2021 | Report Code: SE12256 | Available Format: PDF | Pages: 110
The Saudi Arabian lighting market was valued at $1,350.0 million in 2020, and it is expected to grow at a CAGR of 10.2% during 2020–2030. The key factors driving the market include the rising adoption of light-emitting diodes (LEDs) because of their customization benefits, energy efficiency, and declining prices, growing trend of smart homes, and development of smart cities and other mega projects.
The lighting market in Saudi Arabia has witnessed a significant decline in sales owing to the stringent lockdowns, which led to the postponement of commercial and industrial projects in the country, during the COVID-19 outbreak. The logistics-based challenges in the COVID era and disruption in the supply of electrical components from China severely affected the market growth in 2020. Moreover, the low availability of raw materials for manufacturing light casings and chips has affected the supply of lighting products. However, the industry is recovering in 2021, and it would show a significant rise in sales from 2020.
The fixture category accounted for the larger volume and revenue shares in the Saudi Arabian lighting market, based on component, in 2020. This was because of the improving performance, and low maintenance cost Moreover, fixtures are an ideal solution for any business looking to cut costs and increase profits.
The wireless category is expected to witness faster growth during the forecast period, based on technology. This was due to the fact that the use of wires is completely eliminated with such lights. Sensors, lights, and a central control unit communicate with the rest of the system. This facilitates the easy installation, addition, and removal of lighting units from the system. With a wireless lighting control system, users can strategically position their lights to save more energy and money, as a wireless lighting system can support a greater range of distance than a wired one.
The residential category accounted for the largest share, both in terms of value and volume, in Saudi Arabia lighting market in 2020, based on application. This was because Saudi Arabia has been experiencing relatively strong consumer income growth since the last decade, as the government continues to encourage the private sector. According to the Saudi Arabian Monetary Agency, consumer spending in Saudi Arabia increased from $66,895.9 million in 2015 to $80,120.5 million in 2020. The steady economic growth is expected to drive the spending on discretionary goods and services, such as advanced residential lights.
Voice-activated products, such as Amazon’s voice-controlled Echo speaker and Apple’s upcoming HomeKit software, facilitate voice interactions with smart home devices. For instance, Apple’s upcoming HomeKit enables consumers to control devices, such as locks and lights. Additionally, Saudi Arabia ambitions to rapidly increase the adoption of smart homes, which is further supporting the trend of voice control features in lighting systems, and thus, leading to significant growth in the market for lighting in Saudi Arabia.
The consumption of electricity is predicted to significantly increase by more than 50% in the next 20 to 25 years, which is already driving the energy-efficient Saudi Arabian lighting market. According to the International Energy Agency (IEA), smart lighting systems can save up to 35% of the energy compared to conventional lighting systems. Lighting consumes most of the electricity in the residential, commercial, and industrial sectors. Lighting accounts for 15% of the total electricity consumption and 5% of the total greenhouse gas emissions in the country, which is why LEDs are being adopted to reduce both.
The rapid adoption of energy management systems and security and access control systems are driving the adoption of smart home technologies, thereby resulting in the significant growth of the market for lighting in Saudi Arabia. Since smart homes have already evolved to a great extent in developed countries, they are becoming popular in Saudi Arabia, ascribable to the government’s supportive initiatives and significant consumer interest in reducing energy consumption. The government plans to rapidly increase both the smart home and smart lighting (smart bulbs’ share in homes was ~3.0% in 2020) penetration, which is further supporting the lighting industry in the country.
|Base Year (2020) Market Size||$1,350.0 Million|
|Market Size Forecast in 2030||$3,577.0 Million|
|Forecast Period CAGR||10.2%|
|Report Coverage||Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Company Profiling|
|Market Size by Segments||By Component; By Technology; By Application|
|Secondary Sources and References (Partial List)||Association of Outdoor Lighting Professionals; Global Lighting Association; International Association of Lighting Designers; International Monetary Fund; LED Products Manufacturer's Association; Lighting Controls Association; Lighting Urban Community International Association; Middle East Solar Industry Association; National Electrical Manufacturers Association; National Lighting Bureau; Saudi Arabia Solar Industry Association; World Bank|
In recent years, players operating in the lighting industry of Saudi Arabia have announced product launches. For instance:
The Saudi Arabian lighting market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.
Based on Component
Based on Technology
Based on Application
The lighting market in Saudi Arabia will value $3,577.0 million in 2030.
The fixture bifurcation dominates the Saudi Arabian lighting industry based on component.
The reason behind the growing popularity of the wireless technology in the lighting market of Saudi Arabia is the design flexibility and cost and energy savings it provides.
The Saudi Arabian lighting industry is driven by the declining LED prices, development of smart cities, and rising demand for smart homes with customizable fixtures.
The lighting market in Saudi Arabia is witnessing numerous product launches.
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