Saudi Arabia Outdoor LED Lighting Market Size, Trends, and Forecast (2025–2033)

According to Renub Research Saudi Arabia Outdoor LED Lighting Market is projected to reach US$ 957.4 million by 2033, rising from US$ 318.96 million in 2024, at a CAGR of 12.99% during 2025–2033. This rapid expansion is powered by nationwide infrastructure development, ambitious smart-city programs such as NEOM and The Line, rising demand for energy-efficient lighting, and government policies aimed at sustainability and cost reduction. Declining prices of LED products and a growing domestic manufacturing base further accelerate market penetration.

Market Overview

Outdoor LED lighting refers to lighting systems built with light-emitting diodes for use in external environments including roadways, bridges, parks, stadiums, building facades, parking spaces, and landscape applications. Compared to traditional lighting—such as halogen, metal halide, or sodium vapor—LED technologies offer significantly higher energy efficiency, longer service life, improved brightness levels, and superior durability.

Saudi Arabia has emerged as one of the strongest adopters of energy-efficient lighting in the Middle East. Government-led initiatives to reduce electricity consumption, digitalize public infrastructure, and develop sustainable cities under the Vision 2030 framework are major catalysts. Mega-projects like NEOM, Qiddiya, the Red Sea Project, and Diriyah Gate are specifying advanced LED lighting as a core element of smart urban planning. The country’s hot desert climate also makes LEDs preferable due to their high temperature resistance and lower maintenance requirements.

Municipalities across the Kingdom are systematically replacing legacy streetlights with LED systems to optimize energy usage, reduce carbon emissions, and improve night-time visibility. LEDs are also valued for their design flexibility, which supports architectural lighting, landscape enhancement, and modern urban aesthetics.

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Key Growth Drivers

1. Vision 2030 and Smart City Development

Vision 2030 is the most influential driver shaping the outdoor LED lighting landscape. The Kingdom is directing billions of dollars into futuristic smart city ecosystems that require intelligent, interconnected lighting networks.

Projects such as NEOM, The Line, Trojena, and Qiddiya feature smart lighting grids capable of remote monitoring, adaptive brightness, motion-based illumination, and integration with broader IoT platforms. These systems help optimize energy consumption and enhance public safety.

During the Global Project Management Forum 2024, a Tarshid senior official highlighted Saudi Arabia’s ambition to become the first G20 nation to fully transition to LED street lighting, reaffirming the government’s strong commitment to energy-saving technologies.

Such high-value commitments promise sustained demand growth for premium outdoor luminaires, smart poles, sensors, and control systems through 2033.

2. Rising Focus on Energy Efficiency

Saudi Arabia is one of the world’s largest per-capita consumers of electricity, making energy efficiency a national priority. Outdoor LEDs offer up to 50–70% lower power consumption than conventional lighting, enabling substantial long-term savings for municipalities and private developers.

Government authorities continue to introduce policies encouraging LED adoption as part of national strategies to reduce reliance on fossil fuels and minimize environmental impact.

In March 2025, Asheil Versatile Lighting Technologies acquired land in Shaqraa Industrial City to establish a state-of-the-art LED manufacturing plant. This investment enhances local production capabilities, shortens supply chains, and supports employment creation while strengthening Saudi Arabia’s position as a regional lighting hub.

3. Infrastructure Expansion and Booming Tourism Sector

Saudi Arabia is aggressively expanding transportation systems, sports complexes, entertainment districts, and tourism destinations. Each of these projects requires resilient, aesthetically pleasing outdoor lighting.

Examples include:

·        Airport upgrades

·        Waterfront renovation projects

·        Historical site revitalization

·        Public recreational spaces and theme parks

The tourism ecosystem—especially in cities like AlUla, Riyadh, and Jeddah—demands sophisticated lighting systems to enhance ambiance, safety, and night-time attractiveness.

In 2023, the Ministry of Sports launched a SAR 10.1 billion initiative to construct and modernize sports infrastructure, including new stadiums in Riyadh, Dammam, and Al-Khobar. These projects create major opportunities for high-performance outdoor lighting systems designed for large-venue applications.

Market Challenges

1. High Initial Investment Costs

Despite their long-term cost benefits, LEDs require higher upfront capital compared to traditional lighting. Sophisticated features—such as smart controls, solar-LED hybrids, and IoT sensors—raise installation costs, which can delay adoption in smaller municipalities or cost-sensitive private developments.

To accelerate penetration, government subsidies, financing programs, and cost-sharing models may be needed, particularly in rural or economically developing regions.

2. Skill Gaps in Smart Lighting Management

Advanced outdoor LED systems require specialized knowledge for installation, calibration, and software-based maintenance. Saudi Arabia still faces a shortage of technical professionals trained in IoT-based lighting networks, remote monitoring technologies, and smart system diagnostics.

This constraint can result in inconsistent performance or prolonged repair timelines. Strengthening vocational training and industry-academia partnerships will be essential to ensure reliable adoption on a national scale.

Market Segments

1. Public Outdoor LED Lighting

Public spaces—including parks, pathways, civic buildings, and monuments—represent a major share of the market. LED installations in these zones focus on safety, accessibility, and urban beautification. Increasingly, public lighting includes:

·        Motion sensors

·        Dimming controls

·        Solar-powered poles

These technologies help cities optimize electricity use while maintaining functional and aesthetic values.

2. New Installations

The new installation segment is expanding rapidly due to unprecedented urban growth and mega-project construction. Developers incorporate LED lighting from the design stage to take full advantage of:

·        Smart controls

·        Architectural flexibility

·        Energy management systems

·        Long-term cost efficiency

Unlike retrofits, new projects face no constraints from legacy infrastructure, allowing seamless integration of cutting-edge lighting solutions.

3. Outdoor LED Hardware

The hardware category includes:

·        Luminaires

·        LED drivers

·        Poles and mounting equipment

·        Sensors and control modules

Technological progress is driven by the need for products adapted to Saudi Arabia’s extreme temperatures and dusty environment. Increasing local manufacturing and customization reduce costs and enhance supply chain efficiency.

4. Outdoor LED Services

As lighting systems become smarter, demand for installation, retrofitting, integration, and maintenance services continues to grow. Service providers offer:

·        Energy audits

·        Remote monitoring

·        System optimization

·        IoT-based control solutions

Municipalities and private developers rely on specialized service firms to ensure regulatory compliance and system reliability.

Regional Insights

Dhahran

Dhahran is a technology and oil industry hub where sustainability is a priority. Organizations such as Saudi Aramco lead efforts to adopt solar-integrated LEDs, smart street-lighting poles, and intelligent traffic systems. The city is becoming a model for innovative outdoor lighting ecosystems.

Riyadh

As the capital, Riyadh is the largest market for outdoor LED lighting. Massive investments in public transport, green spaces, commercial districts, and entertainment zones drive strong demand. The city’s transformation under Vision 2030 includes large-scale LED modernization programs backed by government funding.

Jeddah

Jeddah’s coastal redevelopment, airport expansion, and growing hospitality sector significantly boost outdoor LED demand. The city hosts millions of religious tourists each year, creating a need for safe, durable, and visually appealing lighting systems across public and transportation spaces.

Dammam

Dammam, a key city in the Eastern Province, is experiencing steady industrial and residential development. Upgrades in parks, roadways, and commercial hubs rely heavily on energy-efficient outdoor lighting. Its proximity to industrial zones drives demand for smart and safety-oriented outdoor lighting applications.

Market Segmentation Overview

By Application

·        Public Places

·        Streets & Roadways

·        Others

By Installation Type

·        New Installation

·        Retrofit

By Offering

·        Hardware

·        Software

·        Services

By Region/City

·        Dhahran

·        Riyadh

·        Khobar

·        Jeddah

·        Dammam

·        Others

Competitive Landscape

Companies analyzed across five key viewpoints—Overview, Key Personnel, Recent Developments, SWOT Analysis, and Revenue Performance—include:

·        Panasonic Corporation

·        Signify (Philips Lighting)

·        Hubbell Incorporated

·        Eaton Corporation plc

·        Wipro Lighting Ltd.

·        Samsung Electronics Co. Ltd.

·        Bajaj Electricals Limited

These firms compete on technology innovation, energy efficiency, smart-lighting capabilities, and region-specific product engineering.

Conclusion

Saudi Arabia’s Outdoor LED Lighting Market is on a strong upward trajectory, supported by national sustainability goals, smart-city expansion, and infrastructural modernization. With a projected CAGR of 12.99% from 2025 to 2033, reaching US$ 957.4 million, the market will continue to attract global and domestic players seeking opportunities in hardware manufacturing, integrated lighting systems, and long-term service contracts.

As cities modernize and tourism expands, LED lighting will remain central to Saudi Arabia’s vision of safe, energy-efficient, technologically advanced urban environments.