Saudi Arabia Smart Lighting Market

Market Overview:

The Saudi Arabia smart lighting market size reached USD 146.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 813.9 Million by 2033, exhibiting a growth rate (CAGR) of 19.99% during 2025-2033. The Saudi Arabia smart lighting market is experiencing steady growth, driven by technological advancements and heightened demand for energy-efficient solutions. Key factors include smart city developments, rising sustainability efforts, and the adoption of smart homes and buildings. These trends are shaping the urban infrastructure and energy management, thereby driving the need for smart lighting solutions in the country.

Saudi Arabia Smart Lighting Market Trends:

Implementation of Government Initiatives and Investments in Smart Cities

The Saudi government is aggressively pushing for the establishment of smart cities, as part of its Vision 2030 initiative. The emphasis of the country is on the modernization of infrastructure and the use of energy-efficient technology, with smart lighting technology being part of these developments. Governments are investing in urban development, sustainability, and efficiency technologies, and smart lighting solutions are becoming integral in new urban developments and refurbishment of old infrastructure. These efforts are driving the increased demand for smart lighting systems, which are recognized for their energy optimization capacity, cost-saving on maintenance, and enhanced public safety. Government-sponsored initiatives are fueling the market growth, with smart lighting solutions becoming the norm in most public institutions, residential complexes, and business buildings. In 2024, Saudi Arabia aimed to enhance urban policies to provide integrated services for citizens by 2025 as part of its initiative to improve living standards, according to a senior official. During the opening remarks of the inaugural Global Smart City Forum in Riyadh, Saudi Arabia's Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail declared that the country will develop a national model called the Digital Twin.

Growing Demand for Energy Efficiency and Sustainability

Saudi Arabia is placing a growing emphasis on energy conservation and sustainability, with smart lighting solutions helping to improve these efforts. These systems are designed to optimize energy consumption by adjusting light intensity based on real-time needs and external factors, such as ambient light levels and occupancy. This adaptability leads to significant reductions in energy usage, aligning with the country’s broader environmental goals. The growing awareness about climate change and the need to reduce carbon footprints are encouraging both public and private sectors to invest in sustainable solutions. Smart lighting technology, with its energy-efficient capabilities, is therefore becoming increasingly popular as corporations and cities strive to be part of international sustainability initiatives while enjoying long-term cost benefits. In 2024, Flashnet, collaborating with Saudi Delta Group, initiated an important smart street lighting initiative in Jeddah, Saudi Arabia. The installation of 5,700 inteliLIGHT® controllers using LoRaWAN communication technology aimed to enhance energy efficiency, lower maintenance expenses, and guarantee uninterrupted operation with solar-powered backup system.

Technology Improvement of Internet of Things (IoT) and Smart Infrastructure

The speedy innovation of Internet of Things (IoT) technology is revolutionizing the smart lighting landscape in Saudi Arabia. IoT makes it possible for lighting systems to communicate with other smart infrastructure elements, establishing a more interconnected and automated city life. IoT allows smart lighting systems to be remotely controlled, tracked for performance, and tuned automatically to maximize energy usage and enhance performance. The combination of sensors, real-time data analysis, and cloud-based control systems is improving the efficiency and performance of smart lighting solutions. With the advancement of IoT technology, Saudi Arabia is embracing such innovations to improve its urban infrastructure, and smart lighting systems form a core component of the overall trend towards connected, smart cities. IMARC Group predicts that the Saudi Arabia IoT market is projected to attain USD 28,284.2 Million by 2033.

Saudi Arabia Smart Lighting Market Growth Drivers:

Improving Public Safety and Security

The use of smart lighting systems in Saudi Arabia is greatly improving public safety and security. These systems incorporate features such as motion sensors, adaptive brightness, and built-in cameras that are contributing to increased visibility and the ability to better monitor public areas. City streetlights are now more responsive to immediate conditions, such as pedestrians or cars. This increased visibility is decreasing the likelihood of accidents, discouraging crime, and increasing general safety in residential and commercial districts. Cities and town planners are also focusing on implementing smart lighting as a strategy to provide safer, more secure spaces for residents, driving the demand for such systems.

Growing Adoption of Smart Homes and Buildings

The real estate industry in Saudi Arabia is also facing a change in direction toward more intelligent homes and buildings with automation systems designed to increase convenience, energy efficiency, and comfort. The demand for smart lighting is a direct result of this trend, with homeowners and building owners seeking to control their lighting systems remotely through mobile devices or voice-controlled devices. Smart lighting solutions in residential and commercial spaces offer more flexibility, enabling users to configure lighting conditions based on individual needs and environmental conditions. Such convenience coupled with energy-saving features is fueling the growth of the smart lighting market. Developers and builders are including such systems in new properties to address the need of consumers for advanced, intelligent, and green living environments.

Government Policies and Energy Efficiency Regulations

Saudi Arabia is enforcing tougher policies and energy efficiency regulations that will aim to lower energy consumption and reduce carbon emissions. These policies are shaping the public and private sectors to undertake energy-efficient lighting solutions. Smart lighting systems meet these regulations because they represent a more energy-efficient source of light compared to conventional lighting alternatives. Beyond compliance with laws, companies and local governments are seeing the bottom-line advantages of using energy-efficient lighting, including lowered utility bills and reduced operating expenses. As standards for energy efficiency are developed further, smart lighting will become an even more critical aspect of the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia smart lighting market report, along with forecasts for the period 2025-2033. Our report has categorized the market based on offering, communication technology, installation type, light source and application.

Breakup by Offering:

• Hardware
  • Lights and Luminaires
  • Lighting Controls
• Software
• Services
  • Design and Engineering
  • Installation
  • Post-Installation

Breakup by Communication Technology:

• Wired Technology 
• Wireless Technology 

Breakup by Installation Type:

• New Installation
• Retrofit Installation 

Breakup by Light Source:

• LED Lamps
• Fluorescent Lamps
• Compact Fluorescent Lamps
• High Intensity Discharge Lamps
• Others

Breakup by Application:

• Commercial
• Residential
• Public Infrastructure
• Others

Value Chain Analysis
Key Drivers and Challenges
Porters Five Forces Analysis
PESTEL Analysis
Government Regulations
Competitive Landscape

• Competitive Structure
• Key Player Profiles

Saudi Arabia Smart Lighting Market News:

• May 2025: Enbon, a worldwide leader in LED display solutions, is poised to present an impressive showcase at the Saudi Light & Sound Expo 2025, a key professional exhibition in the Middle East. This occasion acts as a perfect opportunity for Enbon to enhance its footprint in the growing Middle Eastern market. During the expo, Enbon will showcase its leading R5 Rental Series LED Display, tailored for stage shows, major events, and the commercial rental sector. Known for its outstanding performance, the R5 series has established itself as a standard in the industry.
• April 2025: The King Abdullah Financial District Development and Management Company (KAFD DMC) and Huawei have entered into a Memorandum of Understanding (MoU) to work together on smart city solutions, artificial intelligence, and cutting-edge technologies. The agreement, signed at LEAP 2025, seeks to develop collaborative skills and promote the growth of smart city and AI technologies to improve the district's future functions and provide flexible and advanced digital experiences throughout KAFD. Huawei, a top technology firm, is dedicated to aiding KAFD's smart city strategy and digital transformation goals with our cutting-edge AI and smart city solutions. We will concentrate our partnership on creating cutting-edge applications in WiFi-7, smart lighting, environmental monitoring, and sustainable energy solutions. This collaboration signifies a crucial move towards achieving the technological progress objectives set in Saudi Arabia's Vision 2030.
• March 2025: Asheil Versatile Lighting Technologies (Asheil) has acquired land in Shaqraa Industrial City, located 180km northwest of Riyadh, to create a cutting-edge manufacturing and technology center for lighting. This achievement fortifies Saudi Arabia’s role as a regional frontrunner in advanced lighting manufacturing, decreasing the Kingdom’s reliance on imports while fostering industrial expansion, supply chain robustness, and employment opportunities.

Report Coverage: