Middle East and Africa Indoor LED Lighting Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Middle East and Africa Indoor LED Lighting Market Analysis

The Middle East and Africa Indoor LED Lighting Market size is estimated at 2.2 billion USD in 2025, and is expected to reach 2.66 billion USD by 2030, growing at a CAGR of 3.88% during the forecast period (2025-2030).

The Middle East and Africa indoor LED lighting market is experiencing significant transformation driven by massive infrastructure and real estate developments across the region. The total value of real estate projects currently planned or under construction has reached an impressive USD 1.36 trillion, with Saudi Arabia leading at 64.5% (USD 877 billion), followed by the United Arab Emirates at 21.6% (USD 293 billion). This unprecedented level of development is reshaping the urban landscape and creating substantial opportunities for advanced lighting solutions, including indoor architectural lighting. The region's commitment to sustainable development and energy efficiency has led to the implementation of stringent building codes and regulations, particularly in GCC countries. These regulations are increasingly mandating the use of energy-efficient lighting systems in new construction projects.

The commercial sector is witnessing remarkable growth, particularly in office spaces and corporate environments. Dubai's office market demonstrates this trend, with occupancy rates rising significantly from 78.8% to 88% between 2022 and 2023, indicating strong demand for commercial spaces. Saudi Arabia's Vision 2030 transformation program has allocated over USD 1.1 trillion for real estate and infrastructure development, driving the demand for modern lighting solutions, including interior LED lighting. The focus on creating smart buildings and sustainable workspaces has led to increased adoption of advanced lighting control systems and energy-efficient solutions. Major corporations are increasingly seeking LEED certification and other environmental credentials, necessitating the installation of sophisticated LED lighting systems.

The industrial and manufacturing sector is emerging as a crucial growth driver for indoor LED lighting solutions. The region is actively diversifying its economy beyond oil and gas exports, attracting foreign industrial and manufacturing companies through tax incentives and modern infrastructure. The establishment of specialized industrial zones and logistics parks is creating new demand for high-performance industrial lighting solutions. The UAE's 45 operational free trade zones, with 10 more under construction, are fostering industrial clusters that require advanced lighting systems for their operations. These developments are complemented by the integration of smart manufacturing principles and Industry 4.0 technologies, which often incorporate advanced indoor lighting control systems.

The market is witnessing a significant shift toward technological innovation and sustainability. In Kenya, the rapid expansion of data centers, exemplified by Africa Data Center's USD 200 million investment in Nairobi, is creating new requirements for specialized lighting solutions in technical facilities. The emergence of smart city initiatives across the region is driving the adoption of connected lighting systems that can integrate with broader urban management platforms. Sustainability considerations are becoming increasingly important, with governments implementing various initiatives to promote energy-efficient lighting solutions. The UAE's sustainability campaign, offering discounts of up to 25% on selected LED bulbs, demonstrates the regional commitment to promoting energy-efficient lighting technologies. Additionally, the Middle East and Africa horticulture lighting market is evolving, reflecting the region's broader commitment to sustainable and innovative lighting solutions.

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.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Indoor Lighting

Industrial and Warehouse Segment in MEA Indoor LED Lighting Market

The Industrial and Warehouse segment dominates the Middle East and Africa indoor LED lighting market, commanding approximately 39% market share in 2024. This significant market position is driven by the region's ongoing transition from oil and gas dependency to a more diversified economy focused on manufacturing and logistics. The UAE's strategic development of 45 free trade zones, with 10 more under construction, has created substantial demand for industrial LED lighting solutions. Saudi Arabia's Vision 2030 initiative has particularly accelerated this trend, with the logistics sector expected to represent 33% of the Saudi economy by 2030. The presence of major logistics hubs operated by global airlines like Emirates, Etihad Airways, and Qatar Airways further strengthens the segment's dominance. Additionally, the rapid expansion of data centers and modern logistics facilities in key markets like Kenya, Nigeria, and South Africa continues to drive demand for efficient industrial lighting solutions.

Agricultural Lighting Segment in MEA Indoor LED Lighting Market

The Agricultural Lighting segment is experiencing remarkable growth in the Middle East and Africa indoor LED lighting market, with a projected growth rate of approximately 8% during 2024-2029. This accelerated growth is primarily driven by the increasing adoption of vertical farming and greenhouse technologies across the region. The UAE's Bustanika, the world's largest vertical hydroponic farm, exemplifies this trend with its capacity to produce over 1,000 tons of leafy greens. The segment's growth is further supported by significant government investments, such as ADQ's partnership with ZERO for vertical farming projects and the implementation of cutting-edge AgTech Park ecosystems. The dramatic reduction in LED lighting costs, which has decreased by up to 95% in recent years, has made indoor vertical farming more feasible and attractive to investors. Additionally, initiatives like HortiRoad2theGulf, supporting Saudi Arabia, UAE, and Qatar in developing local horticultural industries, are expected to further accelerate the segment's growth trajectory. This aligns with the broader trends in the Middle East and Africa horticulture lighting market by application and Middle East and Africa horticulture lighting market by cultivation.

Remaining Segments in Indoor LED Lighting Market

The Commercial and Residential segments continue to play vital roles in shaping the MEA indoor LED lighting market landscape. The Commercial segment, encompassing offices, retail spaces, and other facilities like hospitals and airports, benefits from extensive infrastructure development across the region, particularly in the GCC countries. The retail sector's transformation from informal to formal trade channels, coupled with the rapid expansion of shopping centers and e-commerce facilities, drives demand for sophisticated lighting solutions. The Residential segment, influenced by large-scale housing development projects and government initiatives promoting energy-efficient lighting, maintains steady growth through urbanization trends and sustainable building practices. Both segments are further supported by various government initiatives promoting LED adoption and energy efficiency standards across the region.

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We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 40+ free charts, the sections cover difficult to find data on various countries on Automotive Production, Lighting Electricity Consumption, Road Network, Number of Stadiums, Number of Charging Stations among others.