Middle East & Africa LED Lighting Market Outlook, 2028

To some extent, the Middle East and Africa are uncharted territories for industrialization and advanced technology. There has been a swift flow of infrastructure investments in the Middle East region, especially in Gulf Cooperation Council (GCC) countries such as Saudi Arabia and Qatar, due to the rising population and the upcoming FIFA World Cup in 2022. Government legislation in this region requiring the use of energy-efficient lighting, as well as growing environmental concerns, has resulted in widespread awareness of green products. People's inclination toward focusing on long-term benefits is boosting the demand for LED lighting solutions, where technology gradation goes hand-in-hand with cost savings in the long run despite the higher initial cost compared to conventional technologies. Increasing government spending on healthcare infrastructure and technological developments is an important factor in the growth of the LED lighting market in the forecast period. The inclusion of technologically advanced and energy-efficient LEDs offers significant operational and financial benefits due to the restrictive budget for healthcare facilities. Advancements in lighting solutions are further expected to contribute to the growth of the healthcare lighting market. Due to the infrastructure development of multispecialty hospitals across countries, demand for a healthcare lighting system has increased. The use of advanced lighting systems has grown rapidly in hospitals, as lighting products are widely used in different healthcare applications.

According to the research report, "Middle East and Africa LED Lighting Market Outlook, 2028," published by Bonafide Research, the market is anticipated to add USD 6.38 Billion during the forecast period. When it comes to lighting, Middle East users have been concerned about telling the hype from reality, and when it comes to modern lighting technology, they still demand value for money. Various countries in the Middle East region are dedicated to deploying energy-efficient lighting solutions across residential, commercial, industrial, and other sectors to reduce carbon footprints and emissions as well as to provide a sustainable environment across the region. Changes in artificial intelligence and smart technological changes are also expected to completely reshape the Middle East's future in the coming years. For instance, Eaton Middle East launched emergency lighting that provides a complete solution for all large open-plan areas. Electronic programming in these new products allows the 12 dedicated LEDs in each lamp head to be set up for wide light distribution for anti-panic lighting or narrowly focused lighting to illuminate escape routes or emergency equipment such as alarms and fire extinguishers.

In addition to that, the development of smart buildings and smart cities is fuelling LED growth. Huge investments in public and private infrastructure are observed in the UAE, Qatar, and Saudi Arabia. Outdoor lighting systems are also used to attract tourists to popular sites in the UAE, such as Dubai Mall, which has a light and water show, and Burj Khalifa, which has a light show. Smart lighting, also known as "connected lighting," is an important lighting solution that offers better energy efficiency than halogen options, even delivers durability in terms of breakage resistance, and is largely immune to vibrations. It provides solutions for both indoor and outdoor purposes with the latest advanced technology products such as LEDs, luminaires, fluorescent bulbs, and others. The luminaries segment leads the market in terms of product type, accounting for more than 63% of the market.

Saudi Arabia is the leading country in the LED lighting market on the back of growing construction projects in the country, especially in the hospitality and residential sectors. Moreover, with the growing investment in the country's infrastructure development projects, the LED lighting market is expected to register high growth over the next few years. Other factors driving the growth are government incentives and changing attitudes toward LED lighting. African lighting is an emerging market for LED lighting. This emerging economic modernization in African countries comes at a time of global economic recession, but Africa still maintains steady economic growth. South Africa became the first African country to phase out incandescent lamps. Africa has been committed to the development of sustainable lighting solutions, seeking effective solutions to power consumption in the global low-carbon trend, driven by increased demand for LED lighting. Over the coming years, the African lighting market is expected to record considerable growth owing to infrastructure development and rising demand for low-cost lighting solutions across the region.

The growing demand for internet of things (IoT) technology, growing awareness about energy savings among consumers and governments worldwide, and the emergence of light fidelity (Li-Fi) technology emerge as the major factors driving the market growth. The demand for energy-efficient connected lighting controls and ongoing and upcoming smart city projects, as well as various policies encouraging energy conservation and environmental protection, combined with stringent regulations, discourage the use of incandescent lamps, which will exacerbate market value in developing economies. The increasing adoption of smart and automated systems by commercial enterprises is thus expected to accelerate the market’s growth. However, the high initial cost of integration and installation services, deployment, smart equipment, and accessories acts as a restraint for the market.

Khind, a global consumer electrical and electronics manufacturer as well as a smart solutions provider for cooling and lighting, is expanding its line of energy-efficient and innovative lighting products that will help reduce energy consumption and environmental footprint as well as serve the growing number of new homes that are being delivered. The announcement comes as 41,000 new apartments and villas are being delivered in Dubai and 15,000 in Abu Dhabi in 2021, according to property consultancy Asteco. The market is also likely to see 1.5 Million square feet of additional office space this year, a figure that could go up if projects that were put on hold or delayed last year resume activity. In Saudi Arabia, the largest Arab economy, around 60,000 residential units will be handed over in 2020, bringing the total residential supply to 1.3 Million and 835,000 in Riyadh and Jeddah, respectively while the total stocks for Makkah and the Dammam Metropolitan Area (DMA) stood at 400,000 and 363,000, respectively. These houses and offices would drive the demand for lighting products in the region.

The rising demand for LED products due to various supportive government regulations and increasing commercial construction projects, including cinemas and shopping malls, is driving the demand for LED lighting products in the region.
• According to Phillips Lighting, one of the leading providers of LED lighting solutions, about 22% of the electricity used in the Middle East is spent on lighting. The increasing awareness of using energy-efficient lighting solutions is driving the demand for LED lighting in Middle Eastern countries.
• For instance, in May 2021, a comprehensive awareness campaign was launched on Abu Dhabi Island to demonstrate the positive environmental benefits of replacing traditional lighting with energy-saving LED streetlights by Abu Dhabi Municipality (ADM) under Abu Dhabi's Department of Municipalities and Transport through its infrastructure and municipality assets sector.
• COVID-19 had a moderate impact in Middle Eastern countries. However, the commercial and industrial sectors were significantly impacted due to disruption in the supply chain, as countries such as China, India, and the United States, which are among the largest exporters to the Middle Eastern countries, were severely impacted by the pandemic.

Major Companies present in the market:
Samsung, Koninklijke Philips Nv, Panasonic Corporation, Opple Lighting Co. Limited, Osram Licht Ag, Valeo Sa, General Electric Company, Hubbell Incorporated, Havells India Limited, Signify Holding, LG Electronics

Considered in this report
• Geography: Middle East & Africa
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Middle East & Africa LED Lighting market with its value and forecast along with its segments
• Country-wise LED Lighting market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• UAE
• Saudi Arabia
• South Africa

By Product:
• Lamps
• Luminaries

By Application:
• Indoor
• Outdoor

By Sales Channel:
• Retail/Wholesale
• Direct Sale
• E-commerce

By Installation Type:
• New
• retrofit

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. 

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the LED lighting industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

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