Summary

The UAE LED lights market reached a value of AED 2,736 Million in 2020. Looking forward, IMARC Group expects the market to grow at a CAGR of around 12% during 2021-2026. Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic on different end use sectors. These insights are included in the report as a major market contributor.

A light-emitting diode (LED) is defined as a semiconductor device that generates light when an electric current passes through it. LEDs are described as modern technology and are used for energy-efficient lighting. They significantly help in reducing electricity bills by using nearly 85% lesser energy than incandescent or halogen lights. Also, LED lights have a longer lifespan, are durable and offer better light quality. Owing to these properties, these lighting systems are currently employed in a wide variety of industrial and home products, such as modular lighting, refrigerated case lighting, task lighting, kitchen under-cabinet lighting, and recessed downlights. In the United Arab Emirates (UAE), such systems have been gaining immense traction on account of numerous infrastructure projects and the growing awareness regarding the usage of energy-efficient systems.

Over the past five years, the LED lighting industry has witnessed exponential growth in the country driven by the reviving real estate market. Some of the leading projects and initiatives, which have been fueling this growth are mentioned below:

In 2016, a nationwide campaign, called ‘I LED the way,’ was launched by the Emirates Authority for Standardisation and Metrology (ESMA), Abu Dhabi Commercial Bank (ADCB), and Dubai Electricity and Water Authority (Dewa). The 12-month eco-program aimed towards organizing community engagement, awareness campaigns and green initiatives. During this time, all high efficiency LED lighting products, certified by ESMA, were sold at a discount of 25% at selected Dubai retailers.
In 2018, Dubai’s Roads and Transport Authority (RTA) collaborated with the Netherlands-based LED lighting solutions provider, Philips Lighting, to launch ‘intelligent’ cycling track and pedestrian lighting system at Jumeirah Corniche. The solution utilizes specialized sensors that help in controlling the light intensity and monitoring the traffic movement on the road.
In 2018, the UAE-based real estate master developer, Dubai Properties (DP), launched energy efficiency retrofit solutions to reduce power costs at its Business Bay Executive Towers. It spent approximately US$ 272,000 to install energy-saving systems across eleven buildings in its community. It partnered with the US-based conglomerate, Honeywell, and Signify, a subsidiary of Philips Lighting. During this partnership, Signify delivered LED lighting in the residential car parks and buildings, and retrofitted nearly 16,000 lights.
In 2019, the UAE-based customizable solutions provider, Ras Al Khaimah Economic Zone (RAKEZ), signed a contract with the UAE-based energy efficiency solutions provider, Smart4Power, to introduce a retrofit project that covers nine buildings, including a district cooling plant. According to the agreement, Smart4Power will take several energy and water conservation measures, such as LED light replacements, the addition of adiabatic cooling for chillers, improvement of cooling systems, and installation of water-saving devices.


Breakup by Product Type:

LED Panel Lights
LED Downlights
LED Street Lights
Others


At present, LED panel lights are the most preferred product category in the country, accounting for the largest share.

Breakup by Application:

Commercial
Industrial
Residential
Others


Amongst these, the majority of lighting systems are installed in commercial spaces.

Breakup by Import and Domestic Manufacturing:

Import
Domestic Manufacturing


Currently, imports exhibit a clear dominance in the UAE LED lights market.

Competitive Landscape:

The competitive landscape of the market has been examined in the report and the profiles of key players have also been provided.

Key Questions Answered in This Report:

How has the UAE LED lights market performed so far and how will it perform in the coming years?
What has been the impact of COVID-19 on the UAE LED lights market?
What are the major application segments?
What are the key product types?
What is the breakup of the market on the basis of import and domestic manufacturing?
What are the various stages in the value chain of the UAE LED lights industry?
What are the key driving factors and challenges in the UAE LED lights industry?
What is the structure of the UAE LED lights industry and who are the key players?
What is the degree of competition in the UAE LED lights industry?
What are the profit margins in the UAE LED lights industry?
What are the key requirements for setting up a LED lights manufacturing plant?
How are LED lights manufactured?
What are the various unit operations involved in a LED lights manufacturing plant?
What is the total size of land required for setting up a LED lights manufacturing plant?
What are the machinery requirements for setting up a LED lights manufacturing plant?
What are the raw material requirements for setting up a LED lights manufacturing plant?
What are the packaging requirements for LED lights?
What are the transportation requirements for LED lights?
What are the utility requirements for setting up a LED lights manufacturing plant?
What are the manpower requirements for setting up a LED lights manufacturing plant?
What are the infrastructure costs for setting up a LED lights manufacturing plant?
What are the capital costs for setting up a LED lights manufacturing plant?
What are the operating costs for setting up a LED lights manufacturing plant?
What will be the income and expenditures for a LED lights manufacturing plant?
What is the time required to break-even?

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Table of Contents

1 Preface
2 Scope and Methodology
2.1 Objectives of the study
2.2 Stakeholders
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.4 Market Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Forecasting Methodology
3 Executive Summary
4 Introduction
4.1 Overview
4.2 Key Industry Trends
5 GCC LED Lighting Industry
5.1 Market Overview
5.2 Market Performance
5.3 Market by Product Type
5.4 Market by Application
5.5 Market by Country
5.6 Market by Import and Domestic Manufacturing
5.7 Market by Public and Private Sectors
5.8 Market by Indoor and Outdoor Applications
5.9 Market Forecast
6 United Arab Emirates LED Lighting Industry
6.1 Market Overview
6.2 Market Performance
6.3 Impact of COVID-19
6.4 Market by Product Type
6.5 Market Breakup by Application
6.6 Market by Import and Domestic Manufacturing
6.7 Market Forecast
6.8 SWOT Analysis
6.8.1 Overview
6.8.2 Strengths
6.8.3 Weaknesses
6.8.4 Opportunities
6.8.5 Threats
6.9 Value Chain Analysis
6.10 Porter’s Five Forces Analysis
6.10.1 Overview
6.10.2 Bargaining Power of Suppliers
6.10.3 Bargaining Power of Buyers
6.10.4 Degree of Competition
6.10.5 Threat of New Entrants
6.10.6 Threat from Substitutes
6.11 Key Market Drivers and Success Factors
6.12 Comparative Analysis of CFL and LED
7 Competitive Landscape
7.1 Competitive Structure
7.2 Market Breakup by Key Players
8 LED Lights Manufacturing Process
8.1 Panel Light
8.1.1 Product Overview
8.1.2 Manufacturing Process and Process Flow
8.1.3 Raw Material Requirements
8.1.4 Major Machinery Pictures
8.1.5 Suppliers of Raw Materials and Delivery Time
8.2 Down Light
8.2.1 Product Overview
8.2.2 Manufacturing Process and Process Flow
8.2.3 Raw Material Requirements
8.2.4 Major Machinery Pictures
8.2.5 Suppliers of Raw Materials and Delivery Time
8.3 Flood Light
8.3.1 Product Overview
8.3.2 Manufacturing Process and Process Flow
8.3.3 Raw Material Requirements
8.3.4 Major Machinery Pictures
8.3.5 Suppliers of Raw Materials and Delivery Time
8.4 Street Light
8.4.1 Product Overview
8.4.2 Manufacturing Process and Process Flow
8.4.3 Raw Material Requirements
8.4.4 Major Machinery Pictures
8.4.5 Suppliers of Raw Materials and Delivery Time
8.5 Tube Light
8.5.1 Product Overview
8.5.2 Manufacturing Process and Process Flow
8.5.3 Raw Material Requirements
8.5.4 Major Machinery Pictures
8.5.5 Suppliers of Raw Materials and Delivery Time
8.6 Bulb
8.6.1 Product Overview
8.6.2 Manufacturing Process and Process Flow
8.6.3 Raw Material Requirements
8.6.4 Major Machinery Pictures
8.6.5 Suppliers of Raw Materials and Delivery Time
9 Project Details, Requirements and Costs Involved
9.1 Land Requirements and Expenditures
9.2 Construction Requirements and Expenditures
9.3 Plant Machinery
9.4 Raw Material Requirements and Expenditures
9.5 Packaging Requirements and Expenditures
9.6 Transportation Requirements and Expenditures
9.7 Utility Requirements and Expenditures
9.8 Manpower Requirements and Expenditures
9.9 Other Capital Investments
10 Loans and Financial Assistance
11 Project Economics
11.1 Capital Cost of the Project
11.2 Techno-Economic Parameters
11.3 Product Pricing and Margins Across Various Levels of the Supply Chain
11.4 Taxation and Depreciation
11.5 Income Projections
11.6 Expenditure Projections
11.7 Financial Analysis
11.8 Profit Analysis
12 Key Player Profiles

List of Figures

Figure 1: GCC: LED Industry Overview
Figure 2: GCC Region: LED Lighting Market: Sales Value (in AED Million), 2015-2020
Figure 3: GCC Region: LED Lighting Market: Breakup by Product Type (in %), 2020
Figure 4: GCC Region: LED Lighting Market: Breakup by Application (in %), 2020
Figure 5: GCC Region: LED Lighting Market: Breakup by Country (in %), 2020
Figure 6: GCC Region: LED Lighting Market: Imports Vs Domestic Manufacturing (in %), 2020
Figure 7: GCC Region: LED Lighting Market: Breakup by Private and Public Sector (in %), 2020
Figure 8: GCC Region: LED Lighting Market Forecast: Sales Value (in AED Million), 2021-2026
Figure 9: UAE: LED Lighting Market: Sales Value (in AED Million), 2015-2020
Figure 10: UAE: LED Lighting Market: Breakup by Product Type (in %), 2020
Figure 11: UAE: LED Lighting Market: Breakup by Application (in %), 2020
Figure 12: UAE: LED Lighting Market: Breakup by Import and Domestic Manufacturing (in %), 2020
Figure 13: UAE: LED Lighting Market Forecast: Sales Value (in AED Million), 2021-2026
Figure 14: UAE: LED Lighting Industry: SWOT Analysis
Figure 15: UAE: LED Lighting Industry: Value Chain Analysis
Figure 16: UAE: LED Lighting Industry: Porter’s Five Forces Analysis
Figure 17: UAE: LED Lighting Market: Breakup by Key Players (in %), 2020
Figure 18: Panel Light Manufacturing: Various Types of Operation Involved
Figure 19: Panel Light Manufacturing: Conversion Rate of Products
Figure 20: Down Light Manufacturing: Various Types of Operation Involved
Figure 21: Down Light Manufacturing: Conversion Rate of Products
Figure 22: Flood Light Manufacturing: Various Types of Operation Involved
Figure 23: Flood Light Manufacturing: Conversion Rate of Products
Figure 24: Street Light Manufacturing: Various Types of Unit Operations Involved
Figure 25: Street Light Manufacturing: Conversion Rate of Products
Figure 26: Tube Light Manufacturing: Various Types of Units Operation Involved
Figure 27: Tube Light Manufacturing: Conversion Rate of Products
Figure 28: Bulb Manufacturing: Various Types of Operation Involved
Figure 29: Bulb Manufacturing: Conversion Rate of Products
Figure 30: LED Lights Manufacturing Plant: Breakup of Capital Costs (in %)
Figure 31: LED Lights Industry: Breakup of Profit Margins at Various Level of Value Chain
Figure 32: LED Lights Manufacturing Plant: Breakup of Manufacturing Costs (in %)

List of Tables

Table 1: Panel Light Manufacturing: Suppliers of Raw Materials and Delivery Timeline
Table 2: Down Light Manufacturing: Suppliers of Raw Materials and Delivery Timeline
Table 3: Flood Light Manufacturing: Suppliers of Raw Materials and Delivery Timeline
Table 4: Street Light Manufacturing: Suppliers of Raw Materials and Delivery Timeline
Table 5: Tube Light Manufacturing: Suppliers of Raw Materials and Delivery Timeline
Table 6: Panel Light Manufacturing: Suppliers of Raw Materials and Delivery Timeline
Table 7: LED Lights Manufacturing Plant: Costs Related to Land and Site Development (in AED)
Table 8: LED Lights Manufacturing Plant: Costs Related to Civil Works (in AED)
Table 9: LED Lights Manufacturing Plant: Machinery Costs (in AED)
Table 10: LED Lights Manufacturing Plant: Costs Related to Other Capital Investments (in AED)
Table 11: LED Lights Manufacturing Plant: Raw Material Requirements and Expenditures (in AED/Year)
Table 12: LED Lights Manufacturing Plant: Outer Packaging Requirements and Expenditure
Table 13: LED Lights Manufacturing Plant: Inner Packaging Requirements and Expenditure
Table 14: LED Lights Manufacturing Plant: Transportation Expenditure (AED/Unit of Light)
Table 15: LED Lights Manufacturing Plant: Costs Related to Utilities (in AED)
Table 16: LED Lights Manufacturing Plant: Costs Related to Salaries and Wages (in AED)
Table 17: LED Lights Manufacturing Plant: Techno-Economic Parameters
Table 18: LED Lights Manufacturing Plant: Income Projections (in AED)
Table 19: LED Lights Manufacturing Plant: Expenditure Projections (in AED)
Table 20: LED Lights Manufacturing Plant: Income Tax Expenditure
Table 21: LED Lights Manufacturing Plant: Depreciation Rate
Table 22: LED Lights Manufacturing Plant: Cash Flow Analysis Without Considering the Income Tax Liability
Table 23: LED Lights Manufacturing Plant: Cash Flow Analysis on Considering the Income Tax Liability
Table 24: LED Lights Manufacturing Plant: Profit and Loss Account