Market Trends of middle east and africa outdoor led lighting Industry
Renovation and construction of new sports stadiums to facilitate the growth of LED lights
- The number of stadiums witnessed a growth from 227 units in 2022 to 255 units in 2030, registering a CAGR of 1.4%. The sports sector has undergone several changes in recent years. For instance, Clay Paky lit up the King Fahd International Stadium in Saudi Arabia using LEDs in 2015. The Khalifa International Stadium used LED lighting by Philips Lighting in 2022. To host games up to the quarterfinals of the Qatar 2022 FIFA World Cup, the upgrades were necessary. Within Ras Abu Aboud Stadium, more than 4,000 different luminaires, including emergency luminaires and exit signs, were erected in 2022. These elements support the expansion of the LED market in the area.
- The Sports Ministry of Saudi Arabia is making impressive progress in building sports infrastructure. The country planned to invest SAR 10.1 billion (USD 2.7 billion) in constructing advanced stadiums to host FIFA, a widely recognized sporting event, by 2023. The new stadium project in Riyadh stands out for its sustainability measures, which include using LED lights in the stadiums.
- The Saudi Arabian Sports Ministry started a SAR 10.1 billion (USD 2.7 billion) program in 2023 to construct new sporting facilities and renovate those that already exist. According to the Saudi Arabian Ministry of Sports, the initiatives will be a part of Saudi Arabia's joint candidature with Egypt and Greece to host the FIFA World Cup in 2030. The Saudi Arabian Football Federation (SAFF) announced in 2023 that Saudi Arabia would construct three new stadiums in Riyadh, Al-Khobar, and Dammam in time for the 2027 Asian Cup. Thus, LED light sales are anticipated to increase nationwide as a result of the building of new stadiums and an increase in athletic events.
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Increase in household size to bolster the growth of LED usage in the region
- The Middle East & Africa had a population of 484 million people as of 2018, with that number predicted to climb to around 500 million by 2030. In 2020, over 92.8 thousand homes were built in the emirate of Abu Dhabi, followed by 41 thousand in the emirate of Sharjah and 35 thousand in the emirate of Dubai. There are expected to be 231.2 thousand residences in the entire United Arab Emirates over the coming years. The building of new rooms will consequently boost sales of LEDs.
- In the Middle East and Africa, the typical household size exceeds five people. In Saudi Arabia, about half of the population owns a home, with 5.46 million households counted in the country. 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.
- In the Middle East and Africa, 2.33 million automobiles were produced in total in 2022, and 2.45 million were anticipated to be produced in 2023. Although it is still in its early stages, the electric vehicle (EV) market across the Middle East and African countries is already showing hopeful signs of growth. As local governments become more aware of the need to reduce their carbon footprint, they are passing legislation to promote the use of EVs. The United Arab Emirates, Saudi Arabia, Bahrain, and Oman, for instance, have announced their net-zero targets. Several countries in the region are also offering tax incentives and subsidies to promote the purchase of electric vehicles. Due to the enormous potential that EVs present in this region, it is projected that demand for LED lighting will rise.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Commercial property grew by 66% in 2021, indicating higher sales of LED lights
- The market’s growth is being driven by the replacement of old streetlights with energy efficient LED lights
- Sustainability campaign and ban of traditional light bulbs to contribute to sales of LED lights
- Replacement of conventional lights and removal of inefficient electronic appliances to drive the growth of LED lights
- Increasing population and energy sustainability campaign to promote higher use of LED lights
