Market Trends in the GCC LED Lighting Market

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Energy Efficient and Cost Effective Technology Resolves Energy Issues for a Greener Environment

There has been a swift flow of infrastructure investments in the Middle East region, especially in Gulf Cooperation Council (GCC) countries such as KSA and Qatar due to rising population and the upcoming FIFA World Cup in 2022. Government legislations mandating the usage of energy efficient lighting in this region and growing environmental concern have resulted in wide awareness about green products. People's inclination toward focusing on long term benefits is boosting the demand for LED lighting solutions, where technology upgradation goes hand-in-hand with cost savings in the long run despite the higher initial cost compared to conventional technologies.

Executive Summary—Key Insights

• Lighting Trend: Growing infrastructure investments in the Gulf Cooperation Council (GCC) region are steadily driving the energy efficient and intelligent lighting market, as lighting accounts for X% of the total energy consumption in the Middle East which is a higher electrical usage compared to the rest-of-the-world.
• Energy Saving: Energy issues in the region can be easily resolved by abandoning the use of conventional lighting (such as incandescent and halogen) and adopting energy-saving solutions such as light emitting diodes (LED), resulting in saving approximately X% of the energy consumed in lighting. This accounts for $X to $X million.
• Go-green Idea: As GCC countries are environment-conscious and highly focused on carbon capture, approximately X megatonnes of carbon dioxide emission can be controlled, annually, by switching to LED lighting solutions. Therefore, governments in some GCC countries are encouraging the utilization of LED lighting for streetlights and municipal buildings to achieve sustainable development through greener technology.
• Market Reach: Currently, LED lighting accounts for only about X% of the total lighting in the GCC region and is expected to be a high-demand lighting technology across the region by 2017, accounting for about X% of the total lighting market.

Executive Summary—Market Trends and Key Factors

• Energy Efficiency Standard: GCC countries are taking the lead in the Middle East region by showing interest in bringing in global energy efficiency standards and developing LED lighting technology.
• Product Innovation: Ongoing research and development is expected to constantly upgrade the quality and efficiency of LED lamps, increasing their adoptability.
• Import Regulations: The GCC Customs Union, imposes a X% tariff on the cost, insurance, and freight (CIF) invoice value of most products used for general illumination.
• Challenging Factors: LED lighting installations require a more complicated design, spanning optical, thermal, and electronics domains. LED lamps are expensive compared to conventional lamps.
• Increasing Applications: Here, LED technology is compared with other conventional technologies which do not offer wide range of product selection due to limited application. Traffic signal is the recent application gaining importance in the region.
• Lack of Electricity: According to the International Energy Agency (IEA), globally, one in five i.e. aroundXbillion people do no have access to electricity for lighting purposes. This problem should be addressed for further development of the LED market.