Market Trends of middle east and africa indoor led lighting Industry
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.
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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.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increase in household size to bolster the growth of LED usage in the region
- Replacement of conventional lights and removal of inefficient electronic appliances to drive the growth of LED lights
- Investments by agri-tech companies and initiatives by governments are expected to support the growth of the LED lighting market
- Commercial property grew by 66% in 2021, indicating higher sales of LED lights
- Sustainability campaign and ban of traditional light bulbs to contribute to sales of LED lights
