UAE will trigger the growth of LED industry in the Middle East: Falaknaz

Dubai - MENA Herald: UAE is set to lead the LED marketplace in the Middle East due to the growth in the country’s large commercial establishments, entertainment sector and also investments in infrastructure development. As per reports, the LED market will witness a compounded annual growth rate (CAGR) of 13 per cent from 2015 through 2022 in the Middle East and Africa region (MEA). The lighting industry was also pegged at US$2.35 billion in 2015 in the MEA region.
“LED streetlights on UAE roads stretching over hundreds of kilometres, in addition to the malls and other retail establishment, growing outdoor digital signages, will further propel the need and growth of the LED industry. Extended lifespan of these lights and reduction in power consumption will immensely help in reducing the country’s carbon footprint. The lighting industry is growing rapidly as the LED industry is making inroads into the Middle East luminaire market,” stated Mr. Abdul Rahman Falaknaz, Chairman of International Expo Consults.
SGI Dubai 2017 will have an exclusive LED focused pavilion to cater to the needs of LED stakeholders. Reputed global brands showcased some of their LED technology at the SGI Dubai show this year. The event showcased innovative printers, digital signage panels and LED accessories worth over AED220 million.
Falaknaz stated that, “Other countries in the GCC region are also aiming to adopt LED lighting which was in place in other geographies like Europe, but its acceptance is spiralling as many industrial, commercial and retail sectors are looking at it as an efficient and cost saving alternative. We are witnessing tremendous growth in the LED market in the UAE and across the GCC region and anticipate this growth to sustain till 2020 and beyond. LED technology is making inroads into our market at present and by 2020 we expect it to become the most integral component of several vertical industries.”
“Currently, the governments in the region are leading the way by replacing the old lights with LED technology, followed by hotels, malls and showrooms, as these sectors have plenty of lights with high-watt consumption. As per reports, the UAE lighting industry alone is close to a billion dirhams. Energy-efficient lighting products constitute about 20 per cent of that, but is estimated to grow at a much higher annual growth rate of 300 per cent in 2016 and beyond due to new regulations on use of conventional lighting,” stated Mr. Sharif Rahman, CEO, International Expo Consults.
“Global LED market is forecasted to have an annual growth of 5% by 2016 and 3% annually until 2020. The regional markets will experience growth as global market is set to be worth USD350 million by 2017. UAE has plenty of upcoming and developing projects and by 2020 is set to reach over USD200 billion worth of investments in UAE’s power sector. The projects will increase the demand for energy-efficient lighting,” added Mr.Rahman.
Several mega projects in the GCC region are in various phases of implementation and executions ahead of global mega events, particularly the World Expo 2020 in the UAE and the FIFA World Cup 2022 in Qatar. Despite the oil prices and challenging market conditions, the Middle East market is upbeat for LED technology and systems as it is expected to remain buoyant as private investments continue and government investment stabilises.
“A laudable factor is the changing attitudes of the people towards LED. Earlier people used to think that LEDs are expensive and don’t perform, but that mindset is slowly changing as they have experienced that LED technologies can survive the hot weather conditions of the GCC region. Governments have reduced the energy subsidies in the region which is a catalyst in the adoption of LED technologies in the region. The lasting life, sustainability in hot weather conditions and cost effectiveness of LEDs has paved the way for alternative cost efficient lighting resources across the world and specially GCC,” concluded Falaknaz.
The SGI Dubai show is one of the most anticipated events of the year in the MENA region with the successful history of creating a great platform for exhibitors and visitors in the signage, digital signage, retail signage solutions, outdoor media, screen and digital printing industries.