Lighting Market in Saudi Arabia: Urbanization, Infrastructure Expansion & Technology Innovation

According to IMARC Group's latest research publication, Saudi Arabia lighting market size reached USD 1.3 Billion in 2024. The market is projected to reach USD 2.1 Billion by 2033, exhibiting a growth rate (CAGR) of 5.05% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Lighting Market

• Smart Energy Optimization and Adaptive Controls: AI-powered lighting systems automatically adjust brightness based on occupancy, daylight, and traffic patterns, slashing energy consumption by 40-50% across commercial buildings and reducing operational costs significantly.
• Predictive Maintenance and Downtime Reduction: Machine learning algorithms monitor lighting performance in real-time, predicting failures before they occur and cutting maintenance costs by 30% while extending fixture lifespan by 25-30%.
• Intelligent Traffic and Safety Management: AI-enabled street lighting responds dynamically to vehicle and pedestrian flow, improving public safety by 35% while reducing energy waste during low-traffic hours through automated dimming capabilities.
• Data-Driven Urban Planning Integration: AI systems collect and analyze lighting usage data to optimize city planning, helping municipalities save 45% on electricity bills through IoT-driven motion sensors and cloud-based management platforms.
• Human-Centric Lighting for Wellness: AI algorithms adjust color temperature and intensity throughout the day to support circadian rhythms, boosting productivity by 20% in offices and improving patient recovery times in healthcare facilities.

How Vision 2030 is Revolutionizing Saudi Arabia Lighting Industry

Vision 2030 is transforming Saudi Arabia's lighting sector through massive infrastructure investments totaling over USD 852 billion across 4,700 construction projects. Mega-developments like NEOM, The Line, and Qiddiya are driving demand for IoT-enabled, solar-integrated lighting systems that combine energy efficiency with smart city functionality. The government is replacing all streetlights nationwide with LED technology, targeting 70-75% energy consumption reduction and contributing to the Kingdom's goal of generating 50% renewable electricity. Riyadh municipality alone is upgrading over 100,000 streetlights to reduce energy use by 50%, while Makkah's retrofit project saves 70% energy and eliminates 41,000 tonnes of carbon emissions annually. The Saudi Standards, Metrology and Quality Organisation now mandates SASO 2870:2018 compliance for all lighting imports, pushing manufacturers toward certified, high-performance solutions. Local production is expanding rapidly, with companies like Asheil Versatile Lighting Technologies establishing manufacturing facilities in Shaqraa Industrial City to reduce import dependence and create jobs, positioning Saudi Arabia as a regional lighting production hub.

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Saudi Arabia Lighting Market Trends & Drivers:

The Kingdom's construction boom is reshaping the lighting landscape at an unprecedented pace. The government launched 73 new projects worth SAR 4.7 billion (over USD 1.2 billion) focused on environment, water, and agriculture infrastructure, all requiring modern lighting installations. New malls, hospitals, schools, and transport hubs serving the growing population demand ambient and task lighting across residential, commercial, and industrial spaces. The Saudi Industrial Development Fund is providing loans for industries to replace halogen and CFL systems with modular LED panels, with major manufacturers like SABIC deploying programmable lighting that aligns with shift timings and reduces thermal footprints. Smart city integration is accelerating adoption, as connected lighting offers superior control and maintenance capabilities. Projects like smart lighting poles now include CCTV cameras, EV chargers, and weather sensors powered by low-voltage LED clusters, creating multi-functional infrastructure that reduces costs while boosting urban resilience across both urban and rural settings.

Tourism expansion is creating new opportunities for sophisticated lighting solutions nationwide. The Kingdom welcomed 30 million international arrivals in 2024, setting a record that's driving rapid construction of hotels, resorts, and entertainment venues requiring high-quality lighting for aesthetics and functionality. Landmarks and historical sites including AlUla and heritage locations are getting upgraded outdoor and decorative lighting to enhance visual impact during night hours, attracting visitors and extending tourism hours. Airports, train stations, and transport facilities handling tourist traffic are expanding with reliable, energy-optimized lighting systems. The hospitality industry is investing heavily in mood lighting and smart systems to deliver premium guest experiences, while events, festivals, and cultural gatherings demand advanced setups for ambience and performance. The Ministry of Sports initiated a SAR 10.1 billion project to build sports infrastructure over five years, including three new stadiums in Riyadh, Al-Khobar, and Dammam featuring high-end outdoor lighting, all supporting Saudi Arabia's collaborative bid with Egypt and Greece to host the 2030 FIFA World Cup.

Energy efficiency mandates and technological innovation are accelerating market transformation. The Saudi Energy Efficiency Program, launched in 2017, targets significant reductions in electricity consumption, with lighting historically contributing 20% of national usage. A nationwide ban on importing non-energy-efficient lights is helping save an estimated 2.5 gigawatt-hours annually, while the government aims to cut peak electricity demand by 30%. Riyadh is testing Li-Fi enabled street lighting to boost public connectivity without straining radio bandwidths, while Madinah pilots self-dimming LED systems that sync with real-time traffic and pedestrian data. Hospitals are using Li-Fi in operation rooms to reduce electromagnetic interference, and the adoption of smart homes and buildings is driving consumer demand for lighting controllable via mobile devices or voice commands. The plan to construct 200 smart cities and automate 4,000 factories under Vision 2030 is creating massive demand for connected lighting infrastructure that integrates seamlessly with building automation, HVAC systems, and security networks.

Saudi Arabia Lighting Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• LED
• Halogen
• Others

Application Insights:

• Indoor
• Outdoor

End User Insights:

• Residential
• Commercial
• Industrial
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Lighting Market

• January 2025: The governmental authorities of Saudi Arabia revealed 73 projects focused on the environment, water, and agriculture valued at SAR 4.7 Billion (over USD 1.2 Billion), all requiring modern lighting infrastructure aligned with Vision 2030 sustainability and energy efficiency goals.
• January 2025: The Saudi Minister of Tourism announced the kingdom experienced 30 million international arrivals in 2024, setting a new record and driving demand for advanced lighting solutions across hospitality, entertainment venues, and tourist attractions.
• March 2025: Huda Lighting, a prominent supplier of state-of-the-art lighting solutions in the Middle East and North Africa, celebrated the grand launch of its new showroom in Riyadh, engaging industry clients, partners, influencers, and the architecture and design community.
• March 2025: Asheil Versatile Lighting Technologies acquired land in Shaqraa Industrial City, 180 kilometres northwest of Riyadh, to build a cutting-edge lighting production and technology cluster, reducing the Kingdom's import reliance while promoting industrial growth, supply chain resilience, and job creation.

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