Globally, the size of LED Lighting market is projected to reach a value of USD 135.2 Billion, at a CAGR of 11.20% by 2030 driven by the Increasing Demand For Energy-Efficient Lighting Systems.
The LED Lighting market has seen significant growth owing to the increasing demand for energy-efficient lighting systems, rising focus on LED standardization, and increasing development of advanced lighting systems.
COVID-19 has impacted various industries across the globe resulting in travel bans, worldwide lockdown, and the slowdown in the supply chain of multiple businesses. The semiconductor industry has also been deeply affected by the ongoing unprecedented event and witnessed a sharp decline in revenues due to the uncertain positioning of technological devices. Despite the growing uncertainties, semiconductors manufacturers, especially LED makers, are trying to continue the operations and working on their long-term strategies. Many semiconductor manufacturers are also collaborating with their partners and specific LED Lighting Market with consistent business stability. For instance, while focusing on the health and safety of their employees, the semiconductor manufacturers are making constant efforts for research, designs, and manufacturing processes. The urgency for continuing operations has occurred within the semiconductor industry for their end users, including medical and healthcare technologies, such as artificial intelligence, Industry 4.0, and 5G, that are working to combat the COVID-19 pandemic.
The global market for LED Lighting is expected to grow rapidly during the forecast period. The growth of the global LED lighting market is mainly driven by factors such as the increasing demand for energy-efficient lighting systems and the rising focus on LED standardization. Moreover, the development of advanced lighting systems creates an opportunity for LED Lighting Market growth. However, the lack of awareness may slow the growth of the LED lighting market during the forecast period.
Lighting is frequently employed in everyday life. It has a significant impact on the quality of life and the productivity of workforces. Artificial lighting extends the working day, allowing people to work in their homes, workplaces, buildings, and industries. Lighting is one of the least expensive goods for implementing such solutions. LED Lighting Market and luminaires are quickly becoming popular in general lighting applications across the world. This product demand is anticipated to increase as LED technology improves in terms of performance and becomes less expensive, replacing conventional light sources with more efficient and higher-performing LED technology.
This can be helpful in achieving low maintenance costs and longer operational life of LED lights compared to conventional lights. LEDs are being widely deployed at parking lots, tunnels, stadiums, and streets. Moreover, the increasing government initiatives promoting the usage of energy-efficient lighting sources and reducing energy consumption are augmenting the demand for Smart LED lighting solutions. Local authorities in several countries are adopting these systems to completely replace their current lighting systems. The state government of the US in NA started replacing the existing conventional streetlights with smart, energy-efficient LED Lighting Market. Hence, energy efficiency, combined with low carbon emissions and thermal pollution, the market has made LEDs a popular choice. According to the US Department of Energy, by 2027, the widespread use of LEDs could save about 348 TWh (compared to no LED use) of electricity. This is the equivalent of the annual electrical output of forty-four large electric power plants (1,000 megawatts each) and a total savings of more than USD 30 billion considering the current electricity prices. Thus, the increasing demand for energy-efficient lighting systems is expected to drive the growth of the global LED lighting market during the forecast period.
The adoption of improved advanced lighting systems is one of the most cost-effective ways for commercial building owners to reduce energy usage, save on operating expenses, and reduce their carbon footprints due to substantial advancements in lighting technology. Upgrades in lighting also improve the quality and aesthetics of an area, improving user comfort and raising property values and rentals. Lighting system improvements may be performed at varying levels of complexity, ranging from changing specific components (such as bulbs, ballasts, or sensors) to relighting or rebuilding entire rooms. Advancements in LED technology and continued innovation by prominent market players are contributing to the high LED lighting sales across the globe. The emergence of smart light filling technology is anticipated to boost the growth potential of the market. For example, Signify Holding introduced its GreenPower LED Interlighting Gen 3 technology to promote efficient development in crops. Such developments are likely to pave the way for new growth opportunities in the region. Many companies in the global market have introduced wireless technologies to their LED Lighting Market.
Lack of awareness about the energy, as well as cost, saving potentials of efficient lighting is fairly limited amongst investors, architects, designers, developers, and construction firms. Lighting is frequently seen as a relatively minor problem in construction projects in contrast to other concerns. Hence, the selection of energy-efficient lighting solutions that best respond to the demands of individual buildings/rooms is not always a priority. The costs associated with any lighting installation comprise the equipment cost for luminaires and other hardware, the cost of labor to install it, and the charges associated with electricity usage. The overall equipment cost ranges from USD 238 to USD 510 and includes lamps, mounting hardware, and connections (labor is listed separately). The labor cost involved in electrical installations ranges from approximately USD 20 to USD 80 for troffer lighting installation, regardless of whether it is LED or fluorescent, and about USD 25 to USD 85 for simply switching the devices. The electricity cost in the US average rate in 2011 was about USD 0.12/kWh. As per the U.S. Energy Information Administration, the average electricity cost in the US rose to USD 0.129/kWh by August 2016. The cost and maintenance associated with LED Lighting Market are less than conventional lighting; however, the awareness is not as much as it should be. Thus, the lack of awareness is expected to act as a restrain for the growth of the global LED lighting market during the forecast period.
The global LED lighting market has been segmented on the basis of installation type, product type, distribution channel, and end-use application.
Based on installation type, the LED lighting market has been segmented into new installation and retrofit.
Based on product type, the LED lighting market has been segmented into luminaries and lamps. The lamps segment is further segmented into bulb lamps, spot lamps, A-lamps, and T-lamps. The luminaires segment is further bifurcated into ceiling luminaires, downlight luminaires, strip luminaires and strip lights.
Based on distribution channel, the global LED lighting market has been segmented into store-based and non-store based.
Based on end-use application, the LED lighting market has been segmented into indoor lighting and outdoor lighting. The indoor lighting segment is further bifurcated into commercial, residential, industrial and others. The outdoor lighting segment is further bifurcated into public places, highway & roadway, architectural, and others.
By region, the LED Lighting market has been segmented into the North America, Europe, Asia-Pacific, and Rest of the World (ROW). Asia-Pacific accounted for the largest market share of 36.9% in 2020, with a market value of USD 19,609.7 million; the market is expected to register the highest CAGR of 11.20% during the forecast period. North America was the second-largest market in 2020, valued at USD 11,267.1 million; the market is projected to exhibit a CAGR of 17.3%.
The LED Lighting Market in Asia-Pacific is predicted to develop at the fastest rate. The demand for energy-efficient lighting solutions is growing, and the region's focus on LED standardisation is intensifying. As a result of these reasons, demand for LED Lighting Market solutions is likely to rise. Leading LED lighting firms from the United States and the United Kingdom are also expanding their operations in Asia-Pacific. In addition, in Asia-Pacific emerging countries, government environmental policies and the construction of new lighting systems are important factors.
The global LED Lighting Market has witnessed significant growth over the forecast period due to the rise in the adoption of mobile applications to monitor expenses. There are several domestic, regional, and global players operating in the LED Lighting market who continuously strive to gain a significant share of the overall LED Lighting Market.
These players focus on innovation and thus, invest in research & development to present a cost-effective product portfolio. There have been recent mergers and acquisitions among the key players, a strategy the business entities leverage to strengthen their reach to the customers.
This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2022 to 2030. For this analysis, MRFR segmented the global LED Lighting market has been segmented based on installation type, product type, distribution channel, and end-use application.
|Market Size||USD 135.2 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Installation Type, Product Type, Distribution Channel, End-Use Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Phillips Lighting Holding B.V. (Netherlands), GE Lighting (US), Osram Licht AG (Germany), Cree Inc. (US), Cooper Lighting Solutions (US), Virtual Extension, Dialight PLC (UK), Zumtobel Group (Austria), Samsung Electronics (South Korea), Sharp Corporation (Japan), Eaton Corporation (Ireland), Acuity Brands Lighting Inc. (US), Digital Lumens Inc. (US), Hubbel Inc. (US), LSI Industries Inc. (US), LumiGrow Inc. (US)|
|Key Market Opportunities||Development Of Advanced Lighting Systems|
|Key Market Drivers||• Drivers o Increasing Demand for Energy Efficient Lighting Systems o Rising Focus on LED Standardization • Restraint o Lack of Awareness • Opportunity o Development of Advanced Lighting Systems • Impact of COVID-19 on the Market o Impact On Semiconductor Manufacturers o Impact On Component Manufacturers o Impact On Device Manufacturers o Impact of COVID-19 on Supply Chain Delays|
A 11.20% CAGR is expected to transform the market.
Asia-Pacific regional market is projected to be the major driver of the market.
The segments in the market are installation type, product type, distribution channel, and end-use application.
The major contenders in the global market are General Electric, Philips Lighting Holding B.V., Samsun Electronics, Osram Licht AG and Cooper Lighting Solutions.