Growing Trend of Smart Homes to Propel Lighting Demand in Saudi Arabia

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According to the International Energy Agency, 35% of the energy can be saved when using smart lighting systems, compared to conventional ones. This has become important since lighting consumes most of the electricity in the industrial, commercial, and residential sectors. It is also predicted that in the coming 20 to 25 years, electricity consumption will increase by more than 50% in Saudi Arabia, in part, due to the rising demand for lighting systems. Moreover, lighting accounts for 5% of the greenhouse gas emission in the country; hence, the adoption of LEDs is rising as they are eco-friendly. 

Environmental issues and the shifting inclination of consumers toward smart homes are also propelling the demand for smart lighting in Saudi Arabia. The government also supports the adoption of smart homes as they help in reducing energy consumption and offer people security and easy remote control. These factors will drive the Saudi Arabian lighting market at a CAGR of 10.2% in the coming years. According to P&S Intelligence, in 2020, the market was valued at $1,350.0 million, and the number will rise to $1,350.0 million by 2030. 

Lights can be wired or wireless in the way they are controlled, of which wireless lights are expected to gain rapid popularity in the coming years. It can be ascribed to the fact that there is no use of wires in such lights, and the lights, sensors, and a central control unit operate the entire system, to work smoothly. This technology also offers better and easy installations. A wireless lighting system can support a broader range of distance than the wired one, allowing users to position their lights to save more energy and money.

Be it wireless or wired, a complete lighting system has a fixture and control, of which fixtures witness the higher sales in the kingdom. The fixtures, which are the lights themselves and the enclosure in which they are housed or fixed, come in the LED, CFL, plasma, high-intensity discharge, and OLED variants. This was due to the enhancing performance of these devices without an increase in their maintenance costs. Additionally, the fixture is the primary component of a lighting system, being the lighting enclosure and device itself.

Why Are LEDs Lighting up Saudi Arabia?

The increasing construction of smart homes and the rising demand for lights as a result can all be traced to the growing urbanization in the kingdom. Already in 2020, over 84% of the Saudi population was living in urban areas, as per the World Bank. The people of cities have a better understanding of advanced technologies, and their basic requirements are also different than those in rural pockets. To accommodate the rising urban population, several mega construction projects, such as King Salman Park, Red Sea Project, NEOM City, and Diriyah Gate, are underway in the kingdom.

LEDs are even penetrating the sports and entertainment sector of Saudi Arabia. In 2021, the season 7 opening race of Formula E, the Diriyah E-Prix, used low-energy-consumption LED lights. The usage of LEDs reduced the energy consumption during the race by 50%, in tune with Saudi’s own sustainability targets it hopes to achieve under the Vision 2030. A key enabler of the dominance of LEDs on the Saudi Arabian lighting market is their declining prices. The average selling price of 60W LED bulbs came down from over $20 in 2010 to less than $5 in 2020.

As lights consume a predominant amount of electricity in the industrial, residential, and commercial sectors, Saudi Arabia is shifting toward energy-efficient lighting systems to deal with power shortages, owing to the rising electricity demand and depleting fossil fuel reserves. In an attempt to replace conventional lighting systems with energy-efficient solutions, the country is rapidly switching to light-emitting diodes (LEDs). The large-scale adoption of LED lighting units has resulted in a significant reduction in greenhouse gas (GHG) levels and prices of LEDs in Saudi Arabia.

Therefore, as the Saudi government continues to develop infrastructure in an era characterized by the increasing energy consumption, the demand for LED lights will increase in the country.