Government Tenders and Smart City Projects Fuel Saudi LED Street Lighting Market Expansion

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.

Download free Report Sample Now

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.
Share:

No comments:

Post a Comment

Popular Posts