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.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033 |
Historical Years
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2019-2024
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Market Size in 2024
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USD 146.0 Million |
Market Forecast in 2033
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USD 813.9 Million |
Market Growth Rate 2025-2033 | 19.99% |
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.
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.
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:
Breakup by Communication Technology:
Breakup by Installation Type:
Breakup by Light Source:
Breakup by Application:
Value Chain Analysis
Key Drivers and Challenges
Porters Five Forces Analysis
PESTEL Analysis
Government Regulations
Competitive Landscape
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Segment Coverage | Offering, Communication Technology, Installation Type, Light Source, Application |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
The Saudi Arabia smart lighting market was valued at USD 146.0 Million in 2024.
We expect the Saudi Arabia smart lighting market to exhibit a CAGR of 19.99% during 2025-2033.
The ongoing development of smart city infrastructures, along with the rising consumer preference towards energy-efficient lighting systems that offer improved illumination while consuming less power, is primarily driving the Saudi Arabia smart lighting market.
The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across the nation, resulting in the temporary halt in numerous construction activities, thereby negatively impacting the Saudi Arabia smart lighting market.
Based on the offering, the Saudi Arabia smart lighting market can be divided into hardware, software, and services. Currently, hardware holds the majority of the total market share.
Based on the communication technology, the Saudi Arabia smart lighting market has been segmented into wired technology and wireless technology, where wired technology currently exhibits a clear dominance in the market.
Based on the installation type, the Saudi Arabia smart lighting market can be bifurcated into new installation and retrofit installation. Currently, new installation accounts for the largest market share.
Based on the light source, the Saudi Arabia smart lighting market has been segregated into LED lamps, fluorescent lamps, compact fluorescent lamps, high intensity discharge lamps, others. Among these, LED lamps currently hold the majority of the total market share.
Based on the application, the Saudi Arabia smart lighting market can be categorized into commercial, residential, public infrastructure, and others. Currently, commercial exhibits a clear dominance in the market.