Saudi Arabia Outdoor LED Lighting Market Illuminates Growth with Vision 2030 and Smart City Projects

Saudi Arabia Outdoor LED Lighting Market Snapshot

According to Renub Research Latest Report Saudi Arabia Outdoor LED Lighting Market is projected to soar to US$ 957.4 million by 2033, up from US$ 318.96 million in 2024, reflecting a CAGR of 12.99% between 2025 and 2033. The surge is driven by nationwide infrastructure upgrades, smart city initiatives like NEOM, falling LED prices, and government policies favoring sustainable energy solutions.

LED lighting’s long lifespan, efficiency, and environmental benefits have positioned it as the backbone of Saudi Arabia’s modern infrastructure projects. From stadiums and airports to roads and coastal landmarks, LEDs are redefining the Kingdom’s nightscape.

Market Overview

Outdoor LED lighting refers to energy-efficient, durable lighting systems used in streets, highways, stadiums, public parks, heritage sites, and building facades. In Saudi Arabia, adoption is accelerating under the Vision 2030 transformation agenda, which emphasizes sustainable infrastructure, urban modernization, and reduced energy consumption.

The country’s harsh desert climate also makes LEDs attractive, thanks to their temperature tolerance, consistent brightness, and durability. Municipalities are replacing outdated streetlights with LEDs, significantly cutting electricity usage and long-term maintenance costs. Their versatility in design and integration with smart systems makes them essential for urban beautification and public safety.

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Key Growth Drivers

1. Vision 2030 and Smart City Initiatives

Saudi Arabia’s mega-projects—NEOM, The Line, and Qiddiya—are designed with smart lighting at their core. LED-based systems are being integrated to enhance energy efficiency, safety, and sustainability.

In 2024, Tarshid’s technical services director, Mohammed Muaafa, announced Saudi Arabia’s ambition to become the first G20 nation to fully implement LED street lighting.

These smart lighting upgrades not only reduce carbon emissions but also align with the Kingdom’s pledge to transition toward green infrastructure.

2. Energy Efficiency and Local Production

LEDs consume significantly less power compared to traditional halogen or sodium vapor lamps. With rising energy costs and environmental concerns, public and private developers are embracing LEDs as a cost-saving and eco-friendly solution.

In March 2025, Asheil Versatile Lighting Technologies announced a new manufacturing facility in Shaqraa Industrial City, enhancing local production and reducing reliance on imports. This facility will train a skilled workforce and introduce advanced energy-saving lighting technologies.

3. Expansion in Public Infrastructure and Tourism

The tourism boom and infrastructure push are opening new avenues for outdoor LED installations. Projects like:

The SAR 10.1 billion Ministry of Sports program (2023) to develop stadiums in Riyadh, Al-Khobar, and Dammam ahead of the 2030 FIFA World Cup.

Airport expansions, beachfront projects, and heritage restorations in cities like AlUla and Jeddah.

Such developments demand high-performance, weather-resistant, and aesthetically pleasing LED solutions.

Challenges

High Initial Installation Costs

Despite long-term savings, LEDs require significant upfront investment. Advanced features such as motion sensors, IoT integration, and solar-powered systems raise costs, making adoption slower in smaller municipalities or budget-constrained projects. Subsidies and incentives will be critical for mass deployment.

Shortage of Technical Skills

The installation and maintenance of IoT-enabled smart LED systems require technical expertise. A lack of trained professionals in Saudi Arabia hampers efficient deployment and long-term performance. Workforce development in this sector will be crucial to sustain growth.

Regional Insights

Riyadh: As the capital, Riyadh leads in LED adoption across government buildings, transport systems, and entertainment hubs. Vision 2030 projects in the city emphasize modernization and sustainability.

Jeddah: Ongoing coastal development, airport expansion, and preparation for mass pilgrimages are fueling LED demand. Religious and hospitality infrastructure is a key focus.

Dhahran: Home to Saudi Aramco, Dhahran is investing heavily in smart, solar-powered LEDs for industrial zones, business parks, and residential communities.

Dammam: The industrial growth of the Eastern Province is driving outdoor LED installations for safety, efficiency, and city beautification.

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Market Segmentation

By Application:

Public Places

Streets and Roadways

Others

By Installation:

New Installations

Retrofit Projects

By Offering:

Hardware (luminaires, drivers, sensors, mounts)

Software

Services (installation, integration, retrofitting, maintenance)

By Region/City:

Dhahran

Riyadh

Khobar

Jeddah

Dammam

Others

Competitive Landscape

The market is witnessing strong competition between global giants and regional players. Companies are investing in innovative product designs, smart controls, and local partnerships to capture share in this fast-growing sector.

Key Players:

Panasonic Corporation

Signify (formerly Philips Lighting)

Hubbell Incorporated

Eaton Corporation plc

Wipro Lighting Ltd.

Samsung Electronics Co. Ltd.

Bajaj Electricals Limited

These players are also leveraging Vision 2030 contracts and forming strategic alliances with Saudi developers to secure long-term projects.

Future Outlook

Saudi Arabia’s outdoor LED lighting market is set to thrive as smart city projects scale up, tourism expands, and local manufacturing gains momentum. While initial costs and technical training remain hurdles, government support and private investments are laying the groundwork for widespread adoption.

With an expected market value approaching US$ 1 billion by 2033, outdoor LED lighting will play a defining role in Saudi Arabia’s energy-efficient, future-ready urban landscape.

Bottom Line: The Kingdom is not only lighting up its streets but also illuminating a path toward sustainable urban transformation.