Saudi Arabia Outdoor LED Lighting Market Size and Forecast 2025–2033

Saudi Arabia Outdoor LED Lighting Market at a Glance

The Saudi Arabia Outdoor LED Lighting Market is expected to reach US$ 957.4 million by 2033, rising from US$ 318.96 million in 2024, registering a strong CAGR of 12.99% during 2025–2033. This expansion is primarily driven by large-scale infrastructure development, mega smart-city projects such as NEOM, The Line, and Qiddiya, and the country’s accelerating transition toward energy-efficient and sustainable lighting systems. Supportive government regulations, declining LED prices, and growing public awareness about energy conservation are further strengthening market momentum.

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Market Overview

Outdoor LED lighting refers to light-emitting diode systems designed for external environments including streets, highways, parks, stadiums, commercial facades, public monuments, and landscape illumination. Unlike conventional lighting solutions such as sodium vapor or halogen lamps, LEDs deliver superior energy efficiency, longer lifespans, reduced maintenance requirements, and enhanced illumination quality.

In Saudi Arabia, outdoor LED lighting has gained rapid adoption as part of the government’s Vision 2030 strategy, which emphasizes sustainability, smart urban planning, and energy optimization. LEDs are increasingly used in both public and private infrastructure projects—ranging from transportation networks and public spaces to industrial facilities and residential communities. Their durability, resistance to high temperatures, and consistent light output make them particularly suitable for the Kingdom’s harsh desert climate.

Municipal authorities across Saudi Arabia are actively replacing conventional streetlights with LED systems to reduce electricity consumption and long-term maintenance costs. Additionally, the flexibility of LED design—allowing for architectural, decorative, and adaptive lighting—aligns with national objectives to modernize cities while minimizing environmental impact. As urban development accelerates, outdoor LED lighting is becoming a foundational component of sustainable infrastructure across the country.

Growth Drivers in the Saudi Arabia Outdoor LED Lighting Market

Vision 2030 and Smart City Development

Saudi Arabia’s Vision 2030 blueprint prioritizes smart infrastructure, digital transformation, and sustainable urban growth. Integrated LED lighting systems are central to the development of mega-projects such as NEOM, The Line, Red Sea Project, and Qiddiya, where energy efficiency, automation, and environmental stewardship are core design principles.

Government-led modernization programs focus on upgrading outdated lighting infrastructure to intelligent LED systems that reduce energy usage, cut carbon emissions, and enhance public safety. In 2024, officials from the Saudi Energy Efficiency Program emphasized the country’s ambition to become the first G20 nation to fully deploy LED street lighting nationwide. Such policy commitments are creating consistent demand for high-performance outdoor LED solutions across residential, commercial, and public domains.

Rising Demand for Energy Efficiency

Outdoor LED lighting consumes significantly less electricity than traditional lighting technologies. With increasing power demand and the government’s commitment to lowering per-capita energy consumption, LEDs are being actively promoted in public infrastructure and private construction projects.

Saudi Arabia’s push toward economic diversification and reduced dependence on oil revenues has also accelerated investments in energy-efficient technologies. By replacing conventional lighting systems, municipalities and developers can achieve long-term cost savings while contributing to national sustainability targets.

In March 2025, Asheil Versatile Lighting Technologies announced the establishment of a new LED manufacturing facility in Shaqraa Industrial City, about 180 kilometers northwest of Riyadh. This facility is expected to strengthen domestic production capabilities, reduce import dependency, and promote the adoption of advanced, energy-efficient LED technologies. Local manufacturing not only supports supply-chain resilience but also aligns with Vision 2030’s emphasis on industrial localization and job creation.

Expansion in Public Infrastructure and Tourism

Massive investments in transportation, sports facilities, tourism destinations, and public spaces are further accelerating market growth. Airport expansions, highways, recreational zones, beachfront developments, and heritage restoration projects all require robust, weather-resistant, and visually appealing lighting solutions.

Tourism growth in cities such as Riyadh, AlUla, Jeddah, and the Red Sea coast has increased demand for LED lighting that enhances night-time ambiance, security, and visitor experience. In 2023, the Saudi Ministry of Sports launched a SAR 10.1 billion infrastructure development initiative, including the construction of new stadiums in Riyadh, Dammam, and Al-Khobar—projects that significantly expand opportunities for premium outdoor LED installations.

Challenges in the Saudi Arabia Outdoor LED Lighting Market

High Initial Installation Costs

Despite their long-term operational savings, outdoor LED systems involve higher upfront costs compared to traditional lighting. Advanced features such as smart controls, motion sensors, adaptive dimming, and solar integration increase initial capital expenditure, making adoption more challenging for smaller municipalities or private developers with limited budgets.

This cost barrier can delay large-scale deployment, particularly in less urbanized or economically constrained regions. While government incentives and public-private partnerships help mitigate the issue, broader financial support mechanisms will be essential to ensure nationwide penetration.

Technical Skills and Maintenance Limitations

The growing use of IoT-enabled and smart lighting systems requires a technically skilled workforce for installation, monitoring, and maintenance. However, limited availability of specialized technicians for smart lighting integration, troubleshooting, and system optimization can lead to performance inefficiencies or delayed maintenance.

To support the sector’s long-term sustainability, Saudi Arabia must invest in training programs and workforce development initiatives focused on LED technologies, automation, and smart infrastructure management.

Segment Analysis

Public Outdoor LED Lighting Market

Public areas—including parks, pedestrian walkways, government complexes, monuments, and civic spaces—represent one of the largest application segments. These environments require uniform, energy-efficient illumination to ensure safety, accessibility, and aesthetic appeal after dark.

Government-driven sustainability mandates have made public spaces a priority for LED adoption. Advanced installations increasingly integrate motion sensors, automated dimming, and solar-powered lighting to maximize energy efficiency while maintaining consistent visibility. This segment is expected to remain a key contributor to market revenues over the forecast period.

New Outdoor LED Lighting Installations

New construction projects under Vision 2030 are fueling rapid growth in the new installations segment. Residential communities, commercial developments, industrial zones, entertainment hubs, and transportation corridors are incorporating LED lighting from the planning stage itself.

Unlike retrofit projects, new installations allow developers to fully integrate cutting-edge technologies such as smart lighting networks, remote control systems, and energy management platforms, resulting in optimized performance, scalability, and long-term efficiency.

Outdoor LED Lighting Hardware Market

Hardware includes luminaires, drivers, mounting systems, sensors, and control components. The Saudi market is witnessing rising demand for products engineered specifically for extreme temperatures, dust exposure, and long operational lifespans.

Local manufacturing initiatives and increased imports are driving cost efficiencies and improving product availability. Customization, durability, and innovation in thermal management and optical design are becoming key differentiators among suppliers.

Outdoor LED Lighting Services Market

As LED systems grow more complex, demand for installation, integration, maintenance, retrofitting, and energy audit services is increasing. Municipalities and large developers increasingly prefer end-to-end service providers capable of ensuring regulatory compliance, system optimization, and long-term cost savings.

The shift from product-only sales to long-term service contracts is creating new revenue streams for lighting companies and system integrators.

Regional Insights

Dhahran Outdoor LED Lighting Market

Dhahran, a major technology and energy hub, is emerging as a model city for smart lighting adoption. Sustainability initiatives by large corporations, particularly in the energy sector, are driving investments in solar-powered LED systems, intelligent traffic lighting, and automated street illumination. The city’s focus on digital transformation and environmental responsibility makes it a strategic market for advanced LED solutions.

Riyadh Outdoor LED Lighting Market

As the capital and largest metropolitan area, Riyadh leads national demand for outdoor LED lighting. Government complexes, commercial districts, transportation networks, and entertainment zones under Vision 2030 require extensive lighting upgrades. Urban beautification programs, smart mobility projects, and large-scale real estate developments continue to boost LED adoption across the city.

Jeddah Outdoor LED Lighting Market

Jeddah’s coastal development, tourism projects, and airport expansions are creating strong demand for high-quality outdoor lighting. The city hosts millions of pilgrims annually, making public safety, traffic management, and aesthetic illumination critical. LED installations in waterfront projects, religious architecture, and hospitality infrastructure are positioning Jeddah as a high-growth market segment.

Dammam Outdoor LED Lighting Market

Dammam, a key city in the Eastern Province, is witnessing growing adoption of LED lighting in industrial zones, residential communities, and public infrastructure. Proximity to industrial clusters creates demand for durable and energy-efficient lighting systems that enhance operational safety and cost management. As urban development accelerates, the city’s transition to LED lighting is expected to intensify.

Market Segmentation

By Application

Public Places

Streets and Roadways

Others

By Installation Type

New Installations

Retrofit

By Offering

Hardware

Software

Services

By Major Cities/Regions

Dhahran

Riyadh

Al-Khobar

Jeddah

Dammam

Others

All major companies in the market are analyzed through five viewpoints:

Overview

Key Personnel

Recent Developments

SWOT Analysis

Revenue Analysis

Key Players Analysis

Leading companies shaping the Saudi Arabia outdoor LED lighting market include:

Panasonic Corporation

Signify (Philips Lighting)

Hubbell Incorporated

Eaton Corporation plc

Wipro Lighting Ltd.

Samsung Electronics Co. Ltd.

Bajaj Electricals Limited

These firms compete through technological innovation, strategic partnerships, localization of manufacturing, and customized lighting solutions designed for the Kingdom’s environmental conditions. Investments in smart lighting platforms, energy-management software, and IoT-enabled systems are becoming critical for maintaining competitive advantage.

Outlook: A Market Aligned with the Kingdom’s Transformation

The Saudi Arabia Outdoor LED Lighting Market is evolving from basic illumination to intelligent, connected, and sustainable infrastructure. Government-led modernization, smart city investments, tourism development, and rising energy efficiency standards are reshaping demand patterns.

With the market projected to grow from US$ 318.96 million in 2024 to US$ 957.4 million by 2033, LED lighting is no longer a niche technology—it is becoming an essential pillar of Saudi Arabia’s urban and economic transformation. As local manufacturing expands, costs decline, and technical capabilities improve, LED solutions will increasingly dominate outdoor lighting across the Kingdom.

Final Thoughts

Saudi Arabia’s outdoor LED lighting market stands at the intersection of technology, sustainability, and national development. Fueled by Vision 2030, smart city mega-projects, and an urgent push for energy efficiency, the sector is on a clear trajectory of long-term growth. While challenges such as high initial costs and skills gaps remain, ongoing investments in manufacturing, workforce development, and digital infrastructure are steadily addressing these barriers.

As the Kingdom continues its journey toward becoming a global hub for innovation and sustainable development, outdoor LED lighting will play a critical role in shaping safer, smarter, and more energy-efficient cities—illuminating not just roads and buildings, but the future of Saudi Arabia itself.