In 2021, more than 4,500 construction projects worth over $850 billion were in the pipeline in Saudi Arabia. Many of them are being executed under the Saudi Vision 2030, with which the kingdom aims to reduce its reliance on the oil and gas industry by developing infrastructure in other sectors, such as manufacturing, education, residential, commercial, and tourism and hospitality. This is massively pushing up the demand for lighting products for interior and exterior functional and decorative purposes.
As a result, P&S Intelligence expects the Saudi Arabian lighting market value to grow to $3,577.0 million by 2030 from $1,350.0 million in 2020, at a CAGR of 10.2% during this decade. Every kind of infrastructure, be it houses, hotels, offices, or factories, requires lights. However, with the increasing number of lighting fixtures, electricity consumption rises. As per the King Abdullah Petroleum Studies and Research Center (KAPSARC), the residential sector is the largest user of electricity in the kingdom, consuming 55,063,200 MWh in 2020.
This high energy consumption is driving the increase in the focus on smart homes and smart home appliances. Smart homes are designed to minimize their electricity usage via the integration of LED lights, which are, additionally, integrated with a range of sensors to monitor and control their operations. For instance, by sensing the amount of natural light available, smart LED lights can automatically turn on or off and modulate their intensity by sensing human activity around them via motion sensors.
LEDs are already known to be longer-lasting and energy-efficient as compared to halogen, high-intensity discharge, fluorescent (CFLs), and incandescent lights. According to the U.S. Department of Energy, LEDs are up to 75% more energy-efficient and 25% longer-lasting than conventional incandescent lights. This is the reason that along with lighting fixtures, the integration of l sensors, microprocessors, wireless transmitters and receivers, and remote control features into lights is increasing in the kingdom in residential, commercial, and industrial settings.