Dubai, United Arab Emirates, Monday, November 11, 2013 — The heavy inflow of infrastructure investments into the Middle East, especially the Gulf Cooperation Council (GCC), due to a swelling population and upcoming mega events such as the 2022 FIFA World Cup, is creating a vast market opportunity for light emitting diode (LED) lighting. The region’s gross domestic product is expected to reach 6 per cent in 2013-2014 due to increased oil production, and the government is pulling out all stops to develop infrastructure to support this growth, in turn, spawning more projects that demand advanced lighting products.
New analysis from Frost & Sullivan (http://www.buildingtechnologies.frost.com),Analysis of LED Lighting Market in Middle East (GCC), finds that the market earned revenues of $115.7 million in 2012 and estimates this to reach $349.8 million in 2017.
The mushrooming of infrastructure projects is steadily driving the market for energy-efficient and intelligent lighting, as several Middle Eastern countries have banned incandescent light bulbs due to their low efficiency. This is an ideal set up for LED lighting to become the fastest growing lighting technology in the region.
“The GCC government’s legislation mandating the use of energy-efficient lighting technologies such as LEDs in public sector outfits, common public spaces, utility services, and commercial buildings has been a shot in the arm for lighting vendors,” observed Kumar Ramesh, Industry Manager, Environmental and Building Technologies Practice, Middle east and North Africa, Frost & Sullivan.
Furthermore, the rising environment conscious all over the world has boded well for sustainable and energy-efficient lighting such as organic LEDs (OLEDs), which is the next generation of LEDs. By switching to LED lighting, the GCC governments are also looking to reduce their carbon footprint drastically.
All these measures notwithstanding, the high initial costs of LED lighting has curbed their potential to some extent. Unless the governments of every country establish international standards, LED lighting will have to strive hard to break through customer resistance. Additionally, due to the highly capital intensive production process using raw materials such as semi-conductors, LED lighting manufacturers are hard pressed to obtain funding from either the government or private investors, which hampers market growth.
Acknowledging these issues, market participants are educating customers about the long-term cost benefits of LED solutions as well as investing in R&D and technology upgrades to lower the installation costs. While these efforts will bring down costs, it will also open up a wider range of options and applications of LED lighting technology available at competitive price.
“Providing high-standard lighting solution will guarantee growth in demand and despite its high initial costs, consumers will increasingly prefer LEDs to conventional lighting technologies for its long-term benefits,” noted Ramesh.
If you are interested in more information on this research, please send an email to Tanu Chopra / Paroma Bhattacharya, Corporate Communications, attanu.chopra@frost.com / paromab@frost.com with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
Analysis of LED Lighting Market in Middle East (GCC) is part of the Building Management Technologies Growth Partnership Service program. Frost & Sullivan’s related research services include: Morocco’s Infrastructure Sectors, the Top 25 Fastest Growing Power Producers in the Turkish Market, Sri Lanka Diesel Genset Market, and Argentinean and Chilean Stationary Genset Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
