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Saudi Arabia’s LED lighting market is anticipated to grow registering a compound annual growth rate (CAGR) of close to 9 percent during 2018-2023.
According to the report titled “Saudi Arabia LED Lighting Market Outlook to 2023” by Ken Research, the growth rate is expected to slow down initially due to the expected changes in lighting regulations in the Kingdom, however, it will pick up with growth in the construction industry.
“Saudi Arabia LED lighting market is a flourishing space currently in growth stage. The increase in the number of residential establishments and growth in commercial projects focusing on green lighting has created high demand for the usage of LED lighting products,” the report said.
“Electricity supply crisis especially during the summer season and reduction in subsidies on electricity prices increased the need for energy efficient lighting sources,” it continued.
The Saudi government has announced plans for the development of infrastructure and transportation with major projects such as development of Makkah and Riyadh Metro systems, expansion of King Abdulaziz International Airport, development of international tourist destinations in Red Sea Islands, entertainment city in Al Qiddiya.
“These provide a positive outlook for the lighting market. The increase in the expenditure by government for replacement of traditional lighting sources with the LED lighting fixtures especially in the street lighting is another growth driver for the market,” the report noted.
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