Saudi Arabia LED Lighting Market Size & Forecast 2025–2033

The Saudi Arabia LED Lighting Market is entering a powerful new growth phase, fueled by national sustainability goals, large-scale urban development, and a rapid shift toward smart, connected lighting systems. According to Renub Research, the market is projected to reach US$ 1,837.48 million by 2033, up from US$ 832.18 million in 2024, exhibiting a robust CAGR of 9.2% from 2025 to 2033.

This rising demand is supported by multiple forces — from massive megaprojects like NEOM and the Red Sea Development, to stricter government energy efficiency policies, and an increasingly aware consumer base. As Saudi Arabia pushes modernization under Vision 2030, LED lighting stands out as a cornerstone technology for cleaner, smarter, and more cost-efficient infrastructure.

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Understanding the Saudi Arabia LED Lighting Market

The LED lighting market in Saudi Arabia includes the manufacturing, import, distribution, and deployment of LED lamps, luminaires, and connected lighting systems across residential, commercial, industrial, and public infrastructure segments.

LEDs function by passing an electric current through semiconductor material to emit light, offering a superior alternative to incandescent and fluorescent lamps. They are energy-efficient, long-lasting, and versatile, making them ideal for large-scale lighting transformation across the Kingdom.

Across Saudi Arabia, rising environmental consciousness and the high cost of electricity have accelerated the public’s migration toward LEDs. Businesses and households alike are recognizing the long-term savings, reduced carbon footprint, and performance advantages these solutions deliver.

The government’s aggressive push toward energy conservation and the creation of sustainable smart cities further strengthens LED adoption. Massive infrastructure overhauls — from new housing developments to commercial hubs, highways, parks, and industrial zones — now depend heavily on advanced LED solutions.

Key Market Growth Drivers

1. Rising Awareness and Shift Toward Smart Lighting

Saudi consumers today are more informed than ever about the financial and environmental benefits of using LED lights. As electricity tariffs rise and global sustainability trends influence the region, LED lighting is increasingly seen as an attractive long-term investment.

A major trend shaping the market is the rapid growth of smart lighting and IoT-enabled systems:

Smart LEDs offer automation, remote-control capabilities, and real-time energy monitoring.

Adoption is strong in urban centers like Riyadh, Jeddah, and Dammam, where smart home solutions are highly popular.

Commercial buildings and retail spaces are integrating smart LEDs to optimize operations and save on electricity bills.

Retailers and e-commerce platforms also play a significant role by offering accessible LED product ranges at competitive prices. Meanwhile, industry players continue to localize manufacturing. In 2025, Asheli announced a new state-of-the-art LED lighting production facility in Saudi Arabia, supporting domestic supply and reducing import dependency.

2. Infrastructure Development & Urbanization (Vision 2030 Push)

Saudi Arabia’s Vision 2030 blueprint is centered around developing world-class infrastructure:

Smart cities like NEOM, Qiddiya, Jeddah Central, and Diriyah Gate

New residential zones

Highway expansions and public parks

Commercial hubs and entertainment districts

Each of these projects incorporates sustainable, energy-efficient LED systems as part of national goals to cut energy consumption and reduce carbon emissions.

With LEDs offering long lifespan, low maintenance, and high-quality illumination, they have become default choices in:

Government buildings

Roadways and tunnels

Airports and transport networks

Industrial complexes

Healthcare and educational institutions

The Saudi Energy Efficiency Program (SEEP) also mandates strict lighting standards, pushing both public and private sectors to transition to LEDs.

3. Increasing Consumer Awareness Across Sectors

Beyond cities, a growing number of Saudi households and businesses recognize LEDs as both cost-saving and environmentally responsible.

Awareness campaigns, media coverage, and retailer promotions have helped people understand:

LEDs cut electricity usage by 50–70% compared to traditional lights.

They last significantly longer, reducing maintenance.

Modern LEDs offer better brightness, color options, and smart controls.

As sustainability becomes a national priority, consumer interest has surged, driving consistent demand across residential, commercial, and industrial sectors.

Key Challenges in the Saudi LED Lighting Market

1. Market Flooded with Substandard & Counterfeit Products

One major barrier affecting the market is the influx of low-quality, uncertified LED products, often imported at low prices.

This creates several problems:

Shorter product lifespan leading to consumer frustration

Higher risk of electrical failures or safety hazards

Increased replacement frequency

Damage to the reputation of premium LED brands

Weak enforcement of product standards allows such products to circulate widely, impacting consumer trust and slowing overall market progress.

2. Limited Awareness in Rural Regions

While urban cities are rapidly adopting LED lighting, many rural and remote regions of Saudi Arabia still lag behind.

Reasons include:

Lack of awareness about LED benefits

Misconceptions about high upfront costs

Limited access to energy-efficiency programs

Dependence on traditional lighting due to familiarity

Bridging this gap will require targeted campaigns, government initiatives, retailer outreach, and demonstration projects to highlight the long-term savings and advantages of LED solutions.

Regional Market Analysis

Saudi Arabia’s LED lighting adoption varies by region due to differences in economic activity, infrastructure growth, and consumer awareness.

Dhahran LED Lighting Market

Dhahran, home to Saudi Aramco, is a major hub for LED modernization. Large-scale initiatives include:

Replacement of over 200,000 streetlights with LED alternatives

Upgrades in traffic areas and public infrastructure

Government-led LED installations in hospitals and administrative buildings

LED adoption aligns with national goals for smart, energy-efficient urban development. Partnerships between public authorities and private firms are accelerating deployments across industrial zones, residential districts, and commercial establishments.

Riyadh LED Lighting Market

As the nation’s capital and economic powerhouse, Riyadh leads LED adoption due to:

Strong government investment in energy efficiency

Large commercial and residential developments

Expansion of smart districts like King Abdullah Financial District (KAFD)

The demand for smart, IoT-connected LED systems is particularly strong in Riyadh’s luxury homes, corporate buildings, retail centers, and public infrastructure.

Tight regulatory standards under Vision 2030 ensure that new developments comply with high energy-efficiency requirements, giving LED manufacturers significant market opportunities.

Jeddah LED Lighting Market

Jeddah is undergoing rapid transformation thanks to Vision 2030 and the city’s strategic coastal development.

Key highlights include:

Retrofitting thousands of streetlights with high-performance LEDs

LED implementation across the Jeddah Corniche and tourism zones

Adoption of smart lighting in real estate, commercial complexes, and airport expansions

As the city modernizes, demand continues to rise for durable, efficient, and connected LED lighting solutions across hospitality, retail, transportation, and public infrastructure.

Market Segmentation

By Product Type

Lamps

Luminaires

By Application

Indoor

Outdoor

By End User

Commercial

Residential

Industrial

Others

By Sales Channel

Retail/Warehouse

E-Commerce

Direct Sales

By State

Dhahran

Riyadh

Khobar

Jeddah

Dammam

Others

Competitive Landscape

Key companies operating in the Saudi Arabia LED Lighting Market include:

Acuity Brands Inc.

Koninklijke Philips N.V. (Signify)

Emerson Electric Co.

Hubbell Inc.

Daktronics Inc.

Dialight Plc.

LSI Industries Inc.

Samsung Electronics Co. Ltd.

These companies are expanding their footprints via:

New product launches

Local manufacturing partnerships

Smart lighting innovations

Energy-efficient infrastructure collaborations

With the Kingdom pushing forward aggressive modernisation plans, these players are poised to benefit significantly from rising LED demand across sectors.

Final Thoughts

Saudi Arabia’s LED lighting market is positioned for strong, sustained growth through 2033. Vision 2030, smart city projects, and national energy efficiency mandates are transforming the lighting landscape. As consumer awareness grows and infrastructure modernizes, LEDs will become the dominant lighting technology across the Kingdom.

Despite challenges such as counterfeit products and rural awareness gaps, the future remains bright. With domestic manufacturing expanding, technological advancements rising, and sustainability becoming a national priority, the Saudi LED lighting market will play a crucial role in shaping the country’s smart and energy-efficient future.