Saudi Arabia Outdoor LED Lighting Market Size and Forecast 2025–2033
The Saudi Arabia Outdoor LED Lighting Market is expected to reach US$ 957.4 million by 2033, rising from US$ 318.96 million in 2024, registering a CAGR of 12.99% during 2025–2033. This rapid growth is driven by large-scale infrastructure development, ambitious smart city projects such as NEOM, and rising adoption of energy-efficient lighting solutions. Supportive government regulations, sustainability-focused urban planning, and declining LED prices further strengthen market expansion across the Kingdom.
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Saudi Arabia Outdoor LED Lighting Market Overview
Outdoor LED lighting refers to light-emitting diode–based lighting systems designed for external environments, including streets, highways, public parks, stadiums, building facades, industrial zones, and landscape illumination. Compared with conventional lighting technologies such as halogen, metal halide, or sodium vapor lamps, LED lighting offers significantly higher energy efficiency, longer operational life, lower maintenance costs, and greater design flexibility.
In Saudi Arabia, outdoor LED lighting adoption has accelerated rapidly in recent years, largely due to national efforts to reduce energy consumption and modernize infrastructure. Under the Vision 2030 agenda, the Kingdom is prioritizing sustainable development, smart city initiatives, and energy diversification. LED lighting has become a cornerstone technology in these efforts, being widely deployed across both public and private sector projects.
Saudi Arabia’s harsh desert climate further supports the shift toward LED lighting. LEDs are well suited to high-temperature environments and offer consistent illumination even under extreme weather conditions. Municipalities across the Kingdom are replacing traditional streetlights with LED systems to lower electricity consumption, reduce maintenance expenditure, and improve nighttime visibility. At the same time, the low environmental impact and advanced design capabilities of LEDs make them an ideal solution for modern urban aesthetics and large-scale redevelopment projects.
Growth Drivers in the Saudi Arabia Outdoor LED Lighting Market
Vision 2030 and Smart City Development
Saudi Arabia’s Vision 2030 strategy places strong emphasis on sustainable urbanization, smart infrastructure, and improved quality of life. Mega-projects such as NEOM, The Line, Qiddiya, and Red Sea Global are redefining urban planning in the Kingdom and rely heavily on intelligent outdoor lighting solutions.
Smart LED lighting systems integrated with sensors, connectivity, and centralized control platforms are essential components of these developments. They enable real-time monitoring, adaptive brightness control, and reduced energy waste while improving public safety. Government-backed smart city initiatives are accelerating the replacement of inefficient lighting infrastructure with LED-based systems across streets, highways, and public spaces.
In 2024, a senior official from Tarshid highlighted Saudi Arabia’s ambition to become the first G20 nation to fully adopt LED street lighting for energy savings. At the Global Project Management Forum in Riyadh, Tarshid’s technical services director, Mohammed Muaafa, emphasized ongoing efforts to conserve electricity through LED deployment across the Kingdom, reinforcing the long-term demand outlook for outdoor LED lighting.
Rising Demand for Energy Efficiency
Energy efficiency is a critical national priority for Saudi Arabia, given its historically high per-capita energy consumption. Outdoor LED lighting consumes significantly less electricity than conventional lighting systems while delivering superior illumination quality. As electricity tariffs rise and sustainability goals gain prominence, both public authorities and private developers are increasingly choosing LED solutions to reduce long-term operational costs.
LED adoption aligns with Saudi Arabia’s broader goal of reducing reliance on oil revenues by promoting energy-efficient and environmentally responsible technologies. In March 2025, Asheil Versatile Lighting Technologies announced the acquisition of land in Shaqraa Industrial City to establish a state-of-the-art lighting manufacturing facility. This development strengthens local production capacity, reduces dependence on imports, and supports the adoption of advanced energy-efficient LED technologies across the domestic market.
Expansion of Public Infrastructure and Tourism
Saudi Arabia’s continued investment in public infrastructure, transportation networks, and tourism destinations is a major catalyst for outdoor LED lighting demand. Airport expansions, road networks, public parks, recreational zones, and heritage site renovations all require durable, high-performance lighting systems capable of operating in demanding environments.
Tourism growth in cities such as Riyadh, Jeddah, and AlUla has increased the need for aesthetically pleasing and reliable outdoor lighting to enhance visitor experience, safety, and nighttime visibility. In 2023, the Saudi Ministry of Sports launched a SAR 10.1 billion initiative to develop sports infrastructure over five years, including new stadiums in Riyadh, Al-Khobar, and Dammam. These large-scale projects create substantial opportunities for high-end outdoor LED lighting solutions.
Challenges in the Saudi Arabia Outdoor LED Lighting Market
High Initial Installation Costs
Despite long-term cost savings, the upfront cost of outdoor LED lighting systems remains a challenge. Initial expenses include procurement of LED luminaires, smart controls, sensors, and installation services. Advanced features such as motion detection, adaptive dimming, and solar integration further increase capital expenditure.
These costs can deter adoption among smaller municipalities and private developers, particularly in rural or less developed areas. While large government projects continue to drive demand, broader market penetration may require financial incentives, subsidies, or innovative financing models to offset initial investment barriers.
Technical Skills and Maintenance Constraints
The growing adoption of smart and connected outdoor LED systems requires skilled professionals for installation, configuration, and maintenance. However, shortages of trained personnel capable of managing IoT-enabled lighting networks and troubleshooting advanced LED systems present a challenge.
Limited technical expertise can lead to suboptimal system performance and delayed maintenance, affecting reliability. Expanding local workforce training programs and technical education in smart lighting technologies will be critical to sustaining long-term market growth and service quality.
Saudi Arabia Outdoor LED Lighting Market by Segment
Saudi Arabia Public Outdoor LED Lighting Places Market
Public spaces such as streets, parks, pedestrian walkways, government buildings, and monuments are key areas for LED lighting deployment. These locations require uniform, energy-efficient illumination to ensure safety, accessibility, and visual appeal.
Government policies focused on reducing energy consumption and enhancing urban aesthetics are driving widespread replacement of traditional lighting with LED solutions in public areas. Increasing adoption of motion sensors, dimming controls, and solar-powered LED systems further improves energy optimization while maintaining visibility in high-traffic environments.
Saudi Arabia New Outdoor LED Lighting Market
New installations represent the fastest-growing segment of the market, supported by rapid urbanization and the construction of mega-projects under Vision 2030. New residential developments, commercial zones, entertainment districts, and transportation corridors are integrating LED lighting from the design stage.
Unlike retrofit projects, new installations allow developers to fully leverage the scalability, efficiency, and smart features of LED lighting. Advanced control systems, app-enabled platforms, and renewable energy integration are increasingly incorporated into new projects, driving strong demand growth.
Saudi Arabia Outdoor LED Lighting Hardware Market
The hardware segment includes luminaires, drivers, sensors, and mounting systems. Demand for robust, dust-resistant, and thermally efficient hardware is particularly strong due to Saudi Arabia’s climate conditions.
Street lighting, industrial zones, and exterior commercial buildings account for a large share of hardware demand. Increased local manufacturing and higher import volumes are improving supply chain efficiency and reducing costs, while customization and innovation are emerging as key differentiators among suppliers.
Saudi Arabia Outdoor LED Lighting Services Market
Services such as installation, retrofitting, maintenance, and system integration are gaining importance as the market transitions toward smart lighting solutions. Municipalities and private developers increasingly rely on service providers for energy audits, performance monitoring, and remote system management.
As outdoor LED lighting systems become more complex, demand for end-to-end service offerings continues to rise. This shift from one-time product sales to long-term service relationships is reshaping the competitive landscape.
Regional Insights
Dhahran Outdoor LED Lighting Market
Dhahran is emerging as a model city for smart and sustainable lighting, driven by its role as a technology and energy hub. Large corporations emphasize environmental responsibility, supporting adoption of LED lighting across public infrastructure, business parks, and residential areas. Solar-powered LEDs and intelligent traffic lighting systems are gaining traction in line with the city’s innovation-driven profile.
Riyadh Outdoor LED Lighting Market
Riyadh, the capital and largest city, leads Saudi Arabia’s outdoor LED lighting market. Extensive government buildings, commercial districts, and infrastructure projects require efficient and smart lighting solutions. Urban beautification, public transportation upgrades, and new entertainment venues under Vision 2030 are accelerating LED adoption, supported by strong municipal and government funding.
Jeddah Outdoor LED Lighting Market
Jeddah’s coastal redevelopment and role as a major gateway for pilgrims and tourists drive significant demand for outdoor LED lighting. Waterfront projects, airport expansions, religious architecture, and traffic management systems all rely on high-quality, durable lighting solutions. Growing tourism and hospitality investments make Jeddah a key market for both LED hardware and services.
Dammam Outdoor LED Lighting Market
Dammam is experiencing rising demand for outdoor LED lighting due to residential expansion and industrial development in the Eastern Province. Government projects focused on streets, parks, and commercial zones are accelerating the shift toward energy-efficient lighting. The city’s proximity to industrial areas also supports adoption of smart lighting systems that enhance safety and energy management.
Market Segmentation
By Application
· Public Places
· Streets and Roadways
· Others
By Installation
· New
· Retrofit
By Offering
· Hardware
· Software
· Services
By Key Cities
· Dhahran
· Riyadh
· Khobar
· Jeddah
· Dammam
· Others
Key Players Analysis
The Saudi Arabia outdoor LED lighting market features a mix of global lighting leaders and regional specialists. Companies are evaluated across five viewpoints: overview, key personnel, recent developments, SWOT analysis, and revenue performance. Major players include Panasonic Corporation, Signify, Hubbell Incorporated, Eaton Corporation, Wipro Lighting, Samsung Electronics, and Bajaj Electricals.
Final Thoughts
The Saudi Arabia outdoor LED lighting market is poised for rapid and sustained growth through 2033, driven by Vision 2030 initiatives, expanding infrastructure, and rising demand for energy-efficient solutions. While high upfront costs and technical skill gaps pose challenges, strong government support, technological innovation, and local manufacturing expansion continue to unlock new opportunities. As the Kingdom advances toward smarter, more sustainable cities, outdoor LED lighting will remain a critical component of its long-term urban transformation.
