Monday 16 September 2019

Saudi LED lighting market set for 9pc growth: study

RIYADH, June 9, 2019

Saudi Arabia’s LED lighting market is anticipated to grow registering a compound annual growth rate (CAGR) of close to nine per cent during 2018-2023, a report said.

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, added the report titled “Saudi Arabia LED Lighting Market Outlook to 2023” by Ken Research.

The Deputy Crown Prince Mohammad bin Salman Al Saud’s Kingdom’s Vision 2030 plan for development of new municipalities and construction of smart cities will drive the growth of the market for LED lighting products, the report noted.

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.

Electricity supply crisis especially during the summer season and reduction in subsidies on electricity prices increased the need for energy efficient lighting sources. 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 Qidya.

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 Saudi Arabia LED lighting market registered a CAGR of close to 18 per cent from 2013-2018.

The report covers the market size in the terms of revenue generated from the sales of LED lighting products and segmentations by type of LEDs (luminaires and lamps), by usage (indoor and outdoor), by sector (commercial, residential, industrial, healthcare, hospitality and others), by region (Central, Eastern, Western and North and South),  by type of sales (project and retail) and provides a comprehensive analysis of market including market evolution, overview and genesis.

Market Overview: Market Segmentation

By Type of LED (lamps and luminaires)

LED luminaires dominates the sales of LED lighting products in the market. Luminaires are preferred in the commercial and industrial sector as compared to lamps hence, constitutes for higher sales share. Lamps are popularly used in the residential sector.

By Usage (indoor and outdoor)

The LED lighting products are used for indoor and outdoor lighting. Indoor application of LED lights is prevalent in the premises of residential, commercial and hospitality industry. The outdoor application of LED lights is common for the building exterior, façade lighting, streetlighting and parking lots and garages lighting purposes. The market is dominated by the usage of LED lighting for the indoor lighting purposes.

By Sector (commercial, residential, industrial, healthcare, Hospitality and other sector)

The LED lighting is used in the commercial, residential, industrial, healthcare, hospitality and other sector. Other sector includes government buildings, airports, public spots, and educational institutions. Commercial sector dominated the market in terms of demand, followed by the residential sector, industrial sector, healthcare sector and hospitality sector respectively.

By Region (Central, East, West, North abd South)

The central region has the highest demand for LED lighting products as most of the developed areas of Saudi including Riyadh wherein major commercial & financial set-ups are present. Riyadh is also a manufacturing hub for lighting companies present in the region. It is followed by Eastern, Western and North & South region respectively.

By Sales (project and retail)

The sales of LED lighting products are grouped in two types namely, Project Sales and Retail Sales. The project sales consist of sales in huge volumes to the commercial, government, residential and industrial sector. Project sales are high in the region due to the large number of construction and development projects being undertaken in Saudi Arabia. The retail sales are mostly happening in the residential and hospitality sector.

Competitive Landscape

The competition in Saudi Arabia LED lighting market is highly concentrated with approximately 50 companies including domestic and international. The market is import driven with handful of manufacturing plants based in the country. The market requires huge investments in the R&D, product development, marketing and promotion. The major competing parameters for the players are diverse product portfolio, brand name, pricing, the energy efficiency, the product life output and others.

The top five major players present in the market are Philips Saudi Lighting Company, Al Nasser Group, National Lighting Company, Cooper Lighting (Eaton)  and Zumtobel Lighting Saudi Arabia, according to the report. – TradeArabia News Service


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