According to the latest market research study published by P&S Intelligence, the Saudi Arabian LED street lighting market is on a robust growth trajectory, with its size projected to surge from USD 298 million in 2024 to USD 751 million by 2032, advancing at a strong CAGR of 12.4% during 2025–2032. This expansion is primarily attributed to Saudi Arabia's sweeping energy-efficiency reforms under Vision 2030, which aim to transform the nation’s infrastructure while reducing energy consumption.
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The Kingdom is poised to become the first G20 country to
fully convert its streetlights to energy-saving LEDs, significantly cutting
electricity usage by up to 75%. Government-backed initiatives, such as the
Ministry of Transport and Logistics’ ambitious streetlight replacement
project—starting with 17,000 traditional lights swapped for LEDs across major
cities—underscore a firm national commitment to sustainable urban development.
Additionally, Tarshid, a PIF-owned energy service company, is spearheading a
large-scale retrofit initiative aligned with Saudi Arabia’s target to generate
50% of its electricity from renewable sources by 2030.
Accelerating urbanization, rapid infrastructure growth, and
declining LED prices are converging to further propel the demand for LED street
lighting, making it a cornerstone of the nation’s modern cityscape
transformation.
Key Insights
- In
2024, luminaires accounted for 75% of the market due to government-led
replacement initiatives favoring complete lighting units, while the lamp
category is expected to register faster growth, driven by cost-effective
retrofit projects.
- The
retrofit installation segment led the market in 2024, benefiting from the
widespread need to upgrade existing infrastructure. However, new
installations are set to grow at a higher CAGR of 12.5%, fueled by smart
city and greenfield urban developments.
- The
street and urban roads application category held the largest share at 40%
in 2024, supported by standardized LED upgrades in residential and
commercial areas. Highways and expressways will grow the fastest due to
extensive transportation infrastructure expansion across the Kingdom.
- Government
tenders dominated distribution channels in 2024 with a 45% share and the
highest growth rate, driven by standardized, large-scale public sector
procurement under Vision 2030.
- The
Al-Riyadh region led the market in 2024 with a 35% share, propelled by
major urban initiatives like Murabba and Expo 2030. The Eastern Region is
projected to witness the fastest growth, driven by industrial expansion in
cities like Dammam, Khobar, and Jubail.
- Smart
street lighting is emerging as a transformative trend. Technological
advancements—such as remote monitoring, adaptive lighting, and IoT
integration—are turning traditional systems into intelligent urban
infrastructure assets.
- In a
notable development, Tata Communications and Zain KSA have partnered to
roll out cloud-based smart lighting solutions across Saudi cities,
enabling real-time management and emission reductions through advanced IoT
platforms.
- Mega-projects
like Neom, backed by USD 500 billion in investment, are catalyzing demand
for cutting-edge LED systems that seamlessly integrate with smart city
technologies.
- The
market features moderate consolidation, with global and regional players
like National Lighting Company, Technolight, Asheil Versatile Lighting
Technologies, and Renewable Lighting Factory competing for tenders.
International firms are increasingly forming local ventures to comply with
domestic content requirements.
- Recent industry developments include Ilmex by Ximenez Group’s debut at the Yanbu Flower and Garden Festival with sustainable outdoor lighting, and Swan & Maclaren Group’s USD 28-million illumination project at Six Flags Qiddiya in Riyadh.
- The establishment of Asheil Versatile Lighting Technologies through a joint venture highlights the market’s shift toward local manufacturing to meet growing domestic demand efficiently.
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