Key Market Overview:
LED lighting Market is expected to reach USD 133.8 billion by 2030 from the value of USD 54.9 billion in 2021, witnessing a CAGR of 10.4% during the forecast period (2022-2030)
LED stands for the light-emitting diode. They produce light up to 90% more efficiently than conventional incandescent bulbs, CFL, or halogens. They are widely used in industrial, commercial, and household sectors because of their excellent power of illumination. Associated advanced features such as Auto On/Off, Motion Activation, and other technologies reduce power consumption compared to traditional solutions, resulting in cost savings for residential and commercial end users help. Additionally, smart lighting allows users to change the lighting color to create a room experience according to their mood and preferences. However, LEDs have a much longer lifespan and therefore have a much lower overall cost compared to CFLs. Consumers are starting to realize the benefits of longer life of LED bulbs and will gain more acceptance of LED products such as LED bulbs and ceiling lights.
Growing acceptance of smart solutions is one of the major factors observed in the LED lighting market trends. Due to its high energy efficiency and the ability to control lighting from anywhere at any time, it has gained popularity in recent years, especially in the Asia-Pacific region, and countries such as Japan and China. Countries around the globe are turning to LED lighting. For example, New York has planned to replace 250,000 street lights with LEDs, followed by the replacement of decorative lighting in urban areas. Additionally, Barcelona (Spain) is deploying more than 4000 smart street lights based on LED technology that collects information about humidity, pollution, noise, and the overall environment. Additionally, the U.S. Department of Energy (DOE) has predicted that LEDs are a highly eco-friendly lighting technology that could fundamentally transform the future of lighting in the United States. The widespread adoption of LED lighting could have a substantial impact on energy savings in the United States.
The remarkable properties of LED offering high lumen by consuming less power, no flickering, and better service life are the most prominent factors for the expansion of the market. It incorporates features such as Wi-Fi, daylighting, and occupancy sensors, and also customers’ drift towards green lighting is expected to spur the demand for LED products. One of the factors expected to drive the growth of the LED lighting market is the increasing popularity of manufacturers to combine LEDs in surgical lighting, endoscopy, and phototherapy to enhance the patient treatment experience. Thus, gaining great importance in the medical field. Also, LED lights can last from 6 to 12 years, 40 times longer than standard incandescent bulbs.
LED light uses innovative technology and specific components such as reflective aluminum plates which increase overall production costs and restrict the large-scale usage of LED in multiple application segments. The overall sales of fluorescent lights are quite high due to a lack of awareness of the advantages of LED lighting solutions. Additionally, LED lighting solutions are more expensive than incandescent lighting, and the emergence of low-quality, low-cost, and short-life lighting products is expected to hinder the adoption of LED lighting.
The scope of exploring the unexplored areas of LED lighting is expected to provide lucrative opportunities for market growth during the forecast period. For example, construction sites are one of the most vulnerable and delicate work areas. Therefore, it is of utmost importance that authorities take reasonable precautions to ensure the safety of construction workers. Therefore, installing LED lights proves to be an opportunity for market growth as it is one of the measures that LEDs can improve visibility and reduce the risk of accidents, and protect the employees from being burned.
The advent of COVID-19 has reshaped the economy worldwide and has negatively impacted the LED lighting market. Demand for LED lighting has declined due to strict lockdowns and construction site closures. Its impact has been observed at the first node of the market value chain i.e. among the manufacturers of lighting products. In addition, the market experienced production stoppages and supply chain disruptions, leading to slower industrial production growth at major manufacturing centers. However, in the post-pandemic era construction activity increased due to the launch of new modernization projects, contributing to the steady recovery of the LED lighting industry.
LED Lighting Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||133.8 Billion|
|By Product||Lamps and Luminaries|
|By Installation||New and Retrofit|
|By End-User||Commercial, Industrial and Residential|
|By Geography||North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa|
|Key Players||Signify Holding, Acuity Brands, Savant Systems, Dialight PLC, OSRAM GmbH, Heliospectra AB, Nichia Corporation|
Based on the product, the market is bifurcated into lamps and luminaries. The luminaries segment accounted for the largest share by generating an annual revenue of nearly 58% in 2022. This calls for the rising demand for luminaries in newly constructed commercial or residential buildings. LED luminaries are up to 80% more energy efficient than traditional lighting and incorporate all electronic components for easy installation. Additionally, the lights are extremely durable and offer high brightness with low power consumption. All these factors promote market growth. The lamp segment is expected to register the highest CAGR expanding the use of lamps in the residential sector. LED lamps have advantages such as being more energy efficient and more stable than alternatives such as incandescent and compact fluorescent lamps. LED lamps have an average lifespan of around 15,000 to 35,000 hours, and their longevity and efficiency of 200 lumens per watt should also drive sales growth in this segment.
Based on the installation, the LED market is segmented into new and retrofit. The retrofit segment is projected to hold a sizeable LED lighting market share during the forecast period due to the need to reduce energy consumption compared to conventional lighting and fluorescent lighting, saving around 80% of energy costs annually. Rising demand for LED retrofits in residential environments to reduce maintenance costs and improve safety is expected to boost the revenue growth of the segment. Companies put a lot of effort into developing LED retrofit kits to provide 10% more lighting in a space and to meet energy regulatory requirements for lighting power density and lighting control. Retrofit technology improves the properties of LED lighting, advances operating efficiency, and upgrades lighting quality by increasing the color rendering index (CRI).
Based on consumption by end-user, the market is divided into commercial, residential and industrial. The residential segment is estimated to register strong revenue growth due to the growing popularity of LED lights, which involve small light bulbs that radiate bright white light at a lower cost than traditional bulbs. A common use of LED lighting in residential homes is to emphasize the aesthetic, architectural, or artistic elements of a home. Additionally, increasing the use of LED lighting in office spaces, bathroom lights, walls and ceilings, and reading lights will boost the growth of the industry. The commercial segment is also contributing to CAGR, due to the increasing need to ensure workplace safety and meet required brightness levels. Because of these factors LED is widely used in showrooms, theatres, spotlights, warehouses, etc.
The Asia-Pacific market has witnessed consistent growth and accounted for producing the largest revenue in 2022. This is due to the rapid development of infrastructure projects in emerging markets, expected to increase demand for LED lighting, and increasing energy efficiency initiatives by local governments. The rise of the regional market is expected to be aided by the development of the construction industry in China, Japan, and India and a large number of manufacturers operating in these countries and focusing on new product launches. Additionally, the Indian government has taken several measures to promote the use of LEDs as they are more economical and energy efficient than other light sources. The Street Lighting National Program (SLNP) and Unnat Jyoti Affordable LEDs for All (UJALA) are such programs. In countries like New York and Spain, the government is spending heavily on smart city projects which in turn, is helping the market to grow globally. The market’s second-largest revenue was accounted for by the US. This market expansion can be related to the booming construction sector of the IT industry, benefiting from increased investment and new infrastructure development initiatives.
LED Lighting Market Competitive Landscape:
The competitive landscape of the LED lighting industry has been examined in the report. The rise of new applicants with cutting-edge solutions stems from favorable business policies of emerging market governments and new venture capital firms. The same is true for large companies, which tend to strategically acquire other companies to gain significant market share. Key players in the market include-
- Signify Holding
- Acuity Brands
- Savant Systems
- Dialight PLC
- OSRAM GmbH
- Heliospectra AB
- Nichia Corporation
- In May 2022, a company named Earthtronics introduced its Color & Wattage Selectable LED Strip Series which is meant for general lighting and high-bay found in commercial, retail, and manufacturing facilities.
- In March 2022, Aqua is launched by Wipro which provides a variety of curved luminaires. They have adjustable height suspension and are easy to install, adding to the location’s appeal.
- In February 2022, GE Current overtakes Hubbell Incorporated’s Commercial and Industrial (C&I) Lighting division. The acquisition was intended to expand the defined companies and brands existing sales partnerships and select distributor network
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