Middle East and Africa Indoor LED Lighting - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

Increasing development in the industrial sector and residential sector drives market growth

• In terms of value share, in 2023, the industrial and warehouse segment accounted for the majority of the share, followed by commercial and residential. The Middle East economy relies heavily on purpose-built processing, production, and logistics facilities. In addition, the local market is becoming a magnet for foreign industrial and manufacturing companies due to strong demand for consumer goods and tax incentives. Healthy industrial, manufacturing, and logistics industries are critical for the future of the region's economy as it continues to transition from dependence on oil and gas exports to a more diversified economy.
• In terms of volume share, in 2023, the residential segment accounted for the majority of the share, followed by commercial and industrial and warehouse. Governments across Africa have stepped up efforts to boost manufacturing and industrialization to spur economic growth after the pandemic. This intensified competition for foreign investment, introducing new industrial policies and the subsequent expansion of Special Economic Zones (SEZs) across the continent.
• The Middle East real estate market was expected to remain strong in 2023 due to high oil prices and economic growth. The total value of real estate projects currently planned or under construction is estimated at USD 1.36 trillion. Saudi Arabia accounts for 64.5% of the total, or about USD 877 billion, followed by the United Arab Emirates, with 21.6% or USD 293 billion. Similarly, the Ugandan government has stepped up its efforts to promote industrialization by announcing plans to expand the Kampala Industrial and Business Park (KIBP) by 4 million square meters. The above instances are expected to create more demand for indoor LEDs in the coming years.

Middle East and Africa Indoor LED Lighting Market Trends

Increasing population and energy sustainability campaign to promote higher use of LED lights

• In the Middle East & Africa, the United Arab Emirates, Saudi Arabia, and South Africa are the largest countries in terms of revenue and population. The United Arab Emirates' average size of households was around 4.2 persons in 2015, and by 2022, it had increased to 4.9 people per household. In 2021, South Africa had a population of approximately 60.5 million people, and the population has been growing at a rate between 1.2% and 1.3%. In the same year, the country had an estimated 18 million households, with an average household size of 3.34 persons. The growing population and reduced household size are generating the need for more houses, which is boosting the demand for LED illumination in the region.
• In MEA, the typical household size exceeds five people. In Saudi Arabia, about half of the population owns a home, and 5.46 million households were counted in 2020. In Israel, there were 681.5 thousand homes with five or more people as of 2020. There must be more than two rooms in a house to accommodate five people. The majority of people in Israel live in studio apartments. Sales of LEDs have increased as a result of the growth in household sizes.
• To encourage local people to switch to more energy-efficient and environmentally friendly lights, the UAE's latest sustainability campaign involves giving discounts of up to 25% on selected brand LED bulbs. The South African government's S&L program aims to remove inefficient electronic appliances from the market and encourage the adoption of efficient technologies, which include LEDs, by implementing measures/interventions such as minimum energy performance standards (MEPS), labeling programs, and incentive programs. Such instances are further expected to boost the demand for LED lighting in the country.

The market’s growth is being driven by the replacement of old streetlights with energy efficient LED lights

• In the Middle East & Africa, the industrial sector consumed the most energy (6.12 thousand petajoules) compared to other sectors. Additionally, in 2019, the residential sector consumed 3.68 petajoules, while the commercial sector consumed 1.52 petajoules. Additionally, there has been an increase in the number of commercial buildings throughout the MEA, particularly in Saudi Arabia, the UAE, and Qatar. The Saudi Arabian government has implemented a number of programs like Vision 2030, NTP 2020, and other changes to diversify the economy away from oil.
• Electricity demand in the commercial sector tends to be around 10-12 hours. Electricity use in the industrial sector tends not to fluctuate through the day or year. Electricity demand in the residential sector varies for about 4 to 6 hours. Further, to protect the people at night, the governments of various countries have been taking action. For instance, in Saudi Arabia, Phase 1 of a street light retrofitting project that was initiated in 2021 to replace 38,000 old street lights with LED lights has already begun. This project will save 70% of the energy used and prevent 23,000 tonnes of carbon emissions. These LED lights perform better and use less electricity.
• Governments of countries in the region are taking steps to enhance their use of LED lighting. For instance, Abu Dhabi Municipality, which is a division of Abu Dhabi's Department of Municipalities and Transport, launched a comprehensive awareness campaign on Abu Dhabi Island in May 2021 to highlight the advantages for the environment of switching from conventional lighting to energy-efficient LED streetlights.

Middle East and Africa Indoor LED Lighting Industry Overview

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