The expanding population in Saudi Arabia has put pressure on the country’s existing infrastructure. This has compelled the government of Saudi Arabia to initiate several large-scale projects aimed at infrastructural development in the coming years. According to Transparency Market Research (TMR), the increasing construction activities witnessed in the country will significantly aid in the expansion of Electrical Market in Saudi Arabia.
Surging Infrastructural Development Activities Boost Demand for Electrical Products in Saudi Arabia
The surging demand for electrical products that are compatible with the infrastructure has led to the renewal of existing electrical and lighting systems. This, as per TMR, will boost the Saudi Arabia electrical market at a robust10.4% CAGR between 2015 and 2023. The market was valued at US$4.5 bn in 2014 and is expected to reach US$10.8 bn by the end of 2023.
The Saudi Arabia electrical market is also expected to significantly gain from the rising energy demand in the Middle East. Development activities on card for the energy generation and transmission infrastructure will boost sales of electrical products, as it would require a higher number of cable management products such as trays, cable, floor ducts, cable conduits, raceways, and cable reels to efficiently manage cable networks.
Volatility in Raw Material Prices to Emerge as Major Bottleneck
Despite Saudi Arabia exhibiting favorable opportunities for the electrical market, the volatility in the raw material prices will continue to be a major challenge inhibiting its growth. The unforeseen economic recession also creates major bottleneck for the market. Nevertheless, with companies increasingly engaging in mergers and acquisitions, the market sees lucrative prospects for growth in the near future. As per TMR, the rising opportunities in solar energy and grid modernization will also influence the market’s trajectory positively.
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By application type, decorative lighting, commercial lighting, hospital lighting, flood lighting, tunnel lighting, street lighting, area lighting, pool lighting, solar lighting, and cinema and theatre lighting are the key segments of the Saudi Arabia electrical market. Of these, the tunnel lighting segment is expected to exhibit strong growth. Besides this, the market is also expected to witness significantly rising demand for LED lighting. This segment is likely to benefit from the rising demand for energy efficient lighting solutions.
However, tunnel lighting is expected to emerge as the segment exhibiting the fastest CAGR during the forecast period. The construction of new tunnels and upgrades of the existing ones in Saudi Arabia will boost sales of tunnel lighting in the country.
Demand for Tunnel Lighting Poised to Surge Exponentially
By products, the Saudi Arabia Electrical market comprises metallic cable management, wiring devices, low voltage systems, lighting control systems, and lighting protection systems. Of these, the lighting control systems is poised to surge at a CAGR of 14.3% during the forecast period. The rising demand for efficient energy systems and the growing infrastructural development activities in the country is expected to give significant impetus to this product segment. However, with a market valuation US$1.5 bn, the low voltage systems segment emerged dominant in the market in 2014. TMR forecasts, this segment to continue its lead in the market through the forecast period.