Saudi Arabia Lighting Market Research Report – Industry Analysis and Growth Forecast to 2030

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 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.

• Fixtures Accounted for Dominating Share due to Their Low Maintenance Cost

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.

• Wireless Technology is Expected to Witness Faster Growth as It Enables Space Customization

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.

• Residential Category Dominated Market due to People’s Growing Disposable Income

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.

• Integration of Voice Control Features and Adoption of Smart Lighting Systems Are Key Trends

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.

Rising Adoption of LEDs Is Driving Market Growth

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.

Source: psmarketresearch