Saudi Arabia LED Lighting Market to Surge to US$ 1.83 Billion by 2033

Saudi Arabia LED Lighting Market Overview

According to Renub Research Project Report Saudi Arabia LED Lighting Market is forecasted to reach US$ 1,837.48 million by 2033, up from US$ 832.18 million in 2024, expanding at a CAGR of 9.2% during 2025–2033. This growth is fueled by increasing urbanization, government-backed sustainability programs, rising energy-efficiency awareness, and adoption of smart lighting solutions across residential, commercial, and industrial sectors.

LED lighting, with its long lifespan, energy efficiency, and versatility, is rapidly replacing conventional incandescent and fluorescent lighting across the Kingdom.

Saudi Arabia LED Lighting Industry Overview

LEDs (light-emitting diodes) generate visible light through semiconductors and are widely valued for durability, energy efficiency, and superior lighting quality. They are used in indoor and outdoor spaces, offering solutions for commercial, residential, and industrial applications.

Consumers are increasingly aware of LEDs’ environmental benefits, including lower carbon emissions and reduced hazardous waste. With rising electricity costs, improved lighting quality, and long-term cost savings from reduced maintenance, LED adoption is growing rapidly.

Government-led infrastructure projects, including residential complexes, commercial hubs, and smart cities, have further driven the demand for contemporary LED solutions.

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Key Drivers of Market Growth

1. Growing Awareness and Shift to Smart Lighting

Rising energy costs and environmental concerns have encouraged consumers and businesses to adopt LED lighting. The growing market for IoT-connected smart lighting systems and smart homes, particularly in Riyadh and Jeddah, is driving demand for automation, remote control, and energy monitoring.

Retailers and e-commerce platforms are making LEDs more accessible and affordable. In 2025, Asheli announced plans to establish a state-of-the-art LED manufacturing plant in Saudi Arabia, underlining the sector’s growth potential.

2. Infrastructure Development and Urbanization

Saudi Arabia’s Vision 2030 is accelerating urbanization and infrastructure expansion. LED lighting is integral to public areas, highways, residential complexes, and commercial buildings due to its long lifespan, low maintenance, and energy efficiency.

Smart city initiatives like NEOM rely heavily on LEDs as part of energy-conscious urban planning, while government energy-efficiency programs encourage widespread adoption across sectors.

3. Rising Consumer Awareness

Consumer knowledge of LED benefits—lower energy consumption, longer life, and environmental friendliness—is steadily increasing. Awareness campaigns, government programs, and retail marketing are driving LED adoption in commercial, industrial, and residential sectors.

Educational initiatives focusing on energy-efficient appliances and smart home integration further accelerate market growth.

Challenges in the Saudi Arabia LED Lighting Market

1. Market Saturation with Low-Quality Products

The influx of substandard and counterfeit LEDs undermines consumer confidence. Low-quality imports may initially be cheaper but often fail prematurely, posing safety risks and reducing system reliability. This affects the reputation of legitimate manufacturers and hampers long-term market expansion.

2. Limited Awareness in Rural Areas

While urban centers like Riyadh and Jeddah adopt LEDs rapidly, rural regions lag due to limited infrastructure and awareness. Many rural consumers continue using conventional lighting due to familiarity, misinformation, or cost concerns. Focused government campaigns and education are needed to bridge this adoption gap.

Regional Insights

Dhahran

Home to Saudi Aramco, Dhahran is actively modernizing its LED infrastructure. Over 200,000 streetlights have been replaced with energy-efficient LEDs, enhancing visibility, safety, and cost savings. Government-led installations at King Fahd Military Medical Complex and the Gulf Palace further reflect Dhahran’s commitment to sustainable urban development.

Riyadh

As Saudi Arabia’s economic hub, Riyadh is witnessing rapid LED adoption in smart city zones like the King Abdullah Financial District (KAFD). Smart LED systems are installed across roads, commercial centers, and residential complexes. Government mandates under Vision 2030 and the Saudi Energy Efficiency Program (SEEP) promote energy-efficient lighting, creating a thriving market for smart, IoT-integrated LED solutions.

Jeddah

Jeddah is embracing LED lighting through infrastructure and smart city projects aligned with Vision 2030. Tens of thousands of streetlights have been converted to LEDs, reducing maintenance and energy costs. LED systems are increasingly integrated in public spaces, real estate developments, and commercial establishments, driven by automation, IoT connectivity, and energy management initiatives.

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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 Key States

Dhahran

Riyadh

Khobar

Jeddah

Dammam

Others

Key Players

Acuity Brands Inc.

Koninklijke Philips N.V.

Emerson Electric Co.

Hubbell Inc.

Daktronics Inc.

Dialight Plc.

LSI Industries Inc.

Samsung Electronics Co. Ltd.

These companies are actively expanding product portfolios, enhancing smart lighting offerings, and strengthening distribution networks to capitalize on Saudi Arabia’s growing LED market.

Outlook and Future Trends

Saudi Arabia’s LED lighting market is expected to continue its strong growth trajectory due to:

Rising energy-efficiency awareness among consumers and businesses

Government-backed infrastructure and smart city projects

Adoption of IoT-connected and smart LED systems

Urbanization and commercial sector expansion

Increasing public and private investment in sustainable solutions

Challenges such as low-quality imports and limited rural awareness may persist, but policy initiatives, education, and strategic partnerships are likely to mitigate these issues.

By 2033, Saudi Arabia is positioned as a regional leader in energy-efficient and smart lighting solutions, with LED technology becoming the default choice for residential, commercial, and industrial applications.

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