Saudi Arabia LED Lighting Market

Market Overview:

The Saudi Arabia LED lights market size reached SAR 1,492.9 Million in 2024. Looking forward, IMARC Group expects the market to reach SAR 4,364.1 Million by 2033, exhibiting a growth rate (CAGR) of 12.03% during 2025-2033. The need for energy conservation, infrastructure development projects, and a shift towards smart and connected lighting systems, coupled with government support for the adoption of LED lights, are among the key factors driving the market growth.

Key Market Trends & Insights:

• By product type, the LED panel lights hold the biggest market share.
• By application, commercial represents the largest segment in the market.
• By import and domestic manufacturing, import holds the largest share.

Market Size & Forecast:

• 2024 Market Size: SAR 1,492.9 Million
• 2033 Projected Market Size: SAR 4,364.1 Million
• CAGR (2025-2033): 12.03%

LED lights are a type of lighting technology that utilizes semiconductors to produce visible light. LEDs are highly energy-efficient and durable compared to traditional incandescent or fluorescent lights. They operate by passing an electric current through a semiconductor material, which emits light in the process. LED lights are available in various colors and can be used for both general illumination and decorative purposes. They have gained widespread popularity in various applications, including residential, commercial, and industrial lighting as they offer several significant benefits and advantages compared to traditional lighting options. 

The increasing awareness among consumers about the environmental benefits of LED lights, such as lower carbon emissions and reduced hazardous waste, has contributed to their uptake in Saudi Arabia. LED lights offer energy efficiency and provide improved lighting quality, durability, and versatility, which makes them a preferred choice for various applications. In addition, LED lights offer significant cost savings in the long run due to their energy efficiency and longer lifespan. Consumers and businesses in Saudi Arabia are increasingly realizing the financial benefits of LED lighting, including reduced electricity bills, lower maintenance costs, and longer replacement intervals. This cost-effectiveness is driving the market demand for LED lights. Moreover, the Government of Saudi Arabia has been undertaking significant infrastructure development projects, including the construction of smart cities, commercial complexes, and residential buildings. These projects require modern and efficient lighting solutions, thereby creating a demand for LED lights.

Saudi Arabia LED Lights Market Trends/Drivers: 

Government Programs and Energy Efficiency Policies

The government of Saudi Arabia is constantly introducing energy efficiency measures and sustainability targets, which is considerably driving the use of LED lighting in the country. Organizations like the Saudi Energy Efficiency Center (SEEC) are mandating and incentivizing energy-saving devices, such as LEDs. These initiatives are complementary to Vision 2030, which is concentrating on diverting the Kingdom away from fossil fuels and minimizing electricity use. The government is also converting public infrastructure, such as streets, schools, and government offices, from conventional lighting to energy-saving LED systems. Furthermore, regulatory systems are mandating new building developments to abide by energy-efficient lighting standards. Since these programs are particularly actively implemented, the demand for LED light is rising in both residential and commercial markets. These continuous policy-led changes are speeding up the growth pattern of the market through various incentives to manufacturers and importers to boost product lines that match the government's energy standards. In 2024, A senior official from the National Energy Services Co., known as Tarshid, stated that Saudi Arabia aims to be the first G20 nation to implement LED street lights for energy conservation. During a panel called “Saudi Vision 2030 Outlook” on the opening day of the Global Project Management Forum 2024, held in Riyadh from June 2 to 3, Mohammed Muaafa, the technical services director of Tarshid, mentioned that the company has undertaken numerous projects aimed at saving electricity in different commercial and residential developments throughout the Kingdom.

Increasing Construction and Infrastructure Projects

Saudi Arabia is focussing on infrastructure development powered by mega-projects under Vision 2030, including NEOM, Qiddiya, and the Red Sea Project, that are driving the demand for LED lighting systems. Advanced, sustainable, and smart lighting solutions that LED technologies are uniquely suited to deliver are being demanded by these projects. Both residential and commercial establishments under construction are also adopting smart and energy-efficient lighting as a norm, thus generating continuous demand. Additionally, contractors and builders are opting for LEDs based on their longer lifespan, low energy consumption, and less maintenance costs over conventional lighting systems. Urbanization, coupled with smart city projects, is also encompassing LED lighting in streetlights, signage, and public transport stations. Since building work is picking up momentum in urban and semi-urban regions, the demand for advanced lighting systems is developing speedily, which is further solidifying the market foothold of both local and overseas LED players in the nation. Moreover, the IMARC Group predicts that the Saudi Arabia construction market size is projected to attain USD 135.6 Billion by 2033.

Growing Awareness and Transition Towards Smart Lighting

At present, people are progressively developing awareness of the long-term cost benefits, green advantages, and enhanced performance of LED illumination, driving the market. With increasing electricity prices and greater environmental awareness, people and companies are choosing LEDs instead of conventional lighting. Additionally, the demand for smart homes and Internet of Things (IoT)-connected lighting solutions is expanding rapidly, especially in urban areas such as Riyadh and Jeddah. Domestic and business users are increasingly embracing smart LED lights that provide advantages in the form of remote control, automation, and energy consumption tracking. Retailers also are pressing LED-based products more vocally, citing their higher efficiency and sleek features. Because e-commerce sites are making LED products more convenient and affordable, penetration is increasing across all demographics. In 2025, Asheli announced its plans to establish a modern and advanced LED lighting manufacturing facility in Saudi Arabia.

Saudi Arabia LED Lights Industry Segmentation: 

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia LED lights market report, along with forecasts from 2025-2033. Our report has categorized the market based on product type, application, and imports and domestic manufacturing. 

Breakup by Product Type:

• LED Panel Lights
• LED Downlights
• LED Street Lights
• Others

LED panel lights represents the most widely used product type 

The report has provided a detailed breakup and analysis of the Saudi Arabia LED lights market based on the product type. This includes LED panel lights, LED downlights, LED street lights, and others. According to the report, LED panel lights represented the largest segment. 

LED panel lights are highly energy-efficient compared to traditional lighting options. They can provide the same or higher levels of illumination while consuming significantly less energy. This energy efficiency leads to reduced electricity costs and overall energy savings, making them a cost-effective choice for both residential and commercial applications. Also, these lights are designed to provide uniform and diffused lighting. The panel design evenly distributes light across the entire surface, eliminating hotspots or areas of uneven brightness. This ensures consistent illumination without any harsh glare, creating a comfortable and visually pleasing lighting environment. LED panel lights come in a range of sizes, shapes, and color temperatures, providing versatility to suit different lighting requirements. They can be used for general lighting purposes as well as for creating specific lighting effects or highlighting architectural features. The availability of different color temperatures allows users to customize the lighting ambiance according to their needs. 

Breakup by Application:

• Commercial
• Industrial
• Residential
• Others

Commercial applications account for the majority of the market share

A detailed breakup and analysis of the Saudi Arabia LED lights market based on the application has also been provided in the report. This includes commercial, industrial, residential, and others. According to the report, the commercial segment accounted for the largest market share.

In the commercial sector, where lighting expenses can account for a substantial portion of operational costs, the energy efficiency of LED lights translates into significant cost savings. Businesses can experience reduced electricity bills, leading to improved financial performance. LED lights have a much longer lifespan compared to traditional lighting options such as incandescent or fluorescent bulbs. They can operate for tens of thousands of hours, significantly reducing the frequency of bulb replacements. This characteristic is particularly advantageous in commercial settings where lighting fixtures are often installed in large numbers and difficult-to-access areas. The extended lifespan of LED lights results in reduced maintenance efforts, minimizing disruption to business operations and lowering maintenance costs. 

Breakup by Import and Domestic Manufacturing:

• Import
• Domestic Manufacturing

Imports hold the largest share in the Saudi Arabia LED lights market 

A detailed breakup and analysis of the Saudi Arabia LED lights market has been provided based on imports and domestic manufacturing. According to the report, imports accounted for the largest market share.

The import of LED lights complements domestic production, providing a comprehensive range of options and enabling businesses in Saudi Arabia to meet the growing demand for energy-efficient lighting solutions effectively. LED lighting technology requires specialized manufacturing processes and expertise. Many countries, particularly in East Asia, have established a strong presence in LED lighting manufacturing and possess advanced technological capabilities. These countries have made significant investments in research and development, enabling them to produce high-quality LED lights at competitive prices. As a result, Saudi Arabia imports LED lights to leverage the technological expertise and cost advantages offered by these manufacturing nations. Moreover, imported LED lights often adhere to international standards and certifications, ensuring compliance with quality, safety, and performance requirements. International standards and certifications provide assurance to end-users and regulatory bodies regarding the safety and efficacy of the imported LED lights. 

Competitive Landscape:

The key players in the Saudi Arabia LED lights market have made several innovations and advancements to meet the evolving demands of consumers and businesses. Market players have introduced smart lighting solutions that integrate LED lights with advanced controls and connectivity features. In addition, some market players have focused on developing LED lights that mimic natural daylight and support human well-being. These lights have tunable white features that allow users to adjust the color temperature throughout the day, promoting better sleep patterns, increased productivity, and improved mood. They are also making continuous efforts to enhance the efficiency and performance of LED lights. This includes the development of LED chips and drivers that deliver higher lumen output while consuming less energy. 

The report has provided a comprehensive analysis of the competitive landscape in the Saudi Arabia LED lights market. Detailed profiles of all major companies have also been provided.

Saudi Arabia LED Lights Market News:

• February 2025: Hansa Green Technology, a UAE based high-grade LED lights manufacturer, has released new plans to increase its production capacity in the Hamriyah Free Zone to more than one million LED lighting fixtures per year and make much higher investments. Talks also included the construction of a manufacturing plant in Riyadh, Saudi Arabia, planned for 2025, as part of Hansa Green Technology's expansion strategies for the Middle East and Africa.
• March 2025: Asheil Versatile Lighting Technologies (Asheil) acquired land in Shaqraa Industrial City, 180km northwest of Riyadh, to build a world-class lighting manufacturing and technology center. The achievement enhances Saudi Arabia's leadership in the region as a high-end lighting production powerhouse, lowering the Kingdom's import reliance while stimulating industrial development, supply chain resilience, and employment. The plant will combine innovative production methods, energy-saving LED technologies, and precision engineering to meet market demand as well as the demand for a talented, future-oriented workforce.
• March 2025: King Abdulaziz City for Science and Technology (KACST) demonstrates the ability of nanomaterials to lower the carbon footprint of LED (light emitting diode) streetlights by a considerable amount. The nanomaterial, referred to as nanoPE, increase thermal radiation emission from the LED surface to lower the temperature of the LED. LEDs produce heat, and this increases their temperature and potentially destroys the LED electronics and limits the lifespan of the LED. Indeed, about 75% of the energy provided to LEDs is actually dissipated as heat.

Report Coverage:

Key Benefits for Stakeholders: 

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia LED lights market from 2019-2033. 
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia LED lights market. 
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia LED lights industry and its attractiveness. 
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.