Saudi Arabia, Qatar, and Kuwait’s LED markets will witness higher growth in coming years due to mega projects, says Frost & Sullivan
A commitment to reducing carbon footprints and electricity demand through to 2025, will push the GCC to become one of the fastest growing LED lighting markets in the world. The announcement was made based on research conducted by Frost & Sullivan’s energy and environment team.
Frost & Sullivan says that one of the easiest demand-side measures that can help the GCC to reach its sustainable goals is to overhaul the lighting within buildings and at a city level. This upgrade drive will create market potential for light-emitting diodes (LED).
GCC governments are also taking other steps to achieve their goals, including adopting global energy-efficiency standards, imposing additional import tariffs on (and even outright banning) general illumination lamps, and promoting LED lights. These steps were found to be responsible for facilitating a steady fall in LED product prices and improving performance.
“The GCC is forecast to be one of the fastest growing markets. However, it will stay under-addressed unless companies change their vision and aim towards deriving opportunities from the disruptions and innovations that are influencing the value chain of the LED industry,” said energy and environment research analyst Suganya Rajan. “As digitalisation of light, connectivity and convergence impact the global LED industry, lighting companies should adapt their business models, devise a new market approach, and create more value in order to grow.”
Frost & Sullivan’s study explores growth factors and details measures that market participants must take to combat challenges. It revealed that the GCC LED lighting market will witness a compound annual growth rate (CAGR) of 16.8% between 2015 and 2020, to reach revenues of $1.9bn.
The consultancy expects the existing supply chain to be challenged in this transition across areas of R&D, system integration and automation. It further notes that this shortfall will present an opportunity for market growth for companies that can develop capabilities to deliver tailor-made solutions applicable for large user applications and for city-level solutions.