As per MRFR Analysis, the Global LED Lighting Market was valued at USD 71.59 billion in 2023 and is projected to grow from USD 79.61 billion in 2024 to USD 255.92 billion by 2035, with a CAGR of 11.20% during the forecast period. The market is driven by the demand for energy-efficient solutions and supportive government initiatives promoting LED adoption across various sectors. The indoor lighting segment dominated in 2021, while outdoor lighting is expected to grow faster due to infrastructure projects. Key players are investing in R&D and strategic initiatives to enhance their market presence.
The LED lighting market is witnessing significant growth driven by various factors.
Phillips Lighting Holding B.V. (Netherlands), GE Lighting (US), Samsung Electronics (South Korea), Sharp Corporation (Japan), Eaton Corporation (Ireland)
A number of noteworthy trends are influencing the development of the LED Lighting Market. The growing emphasis on sustainability and energy efficiency, which has resulted in large government programs targeted at lowering carbon emissions and energy consumption, is one major factor driving this industry.
Many governments throughout the world are enacting laws to gradually phase out conventional lighting technologies, encouraging the switch to LED lights because of their longer lifespan and reduced energy use.
Further encouraging adoption is the fact that technological advancements are lowering the cost and increasing the accessibility of LED lighting. The need for smart lighting solutions—which include automation and connection into lighting systems—has increased recently.
Opportunities to improve user experiences and energy management are presented by this move toward intelligent lighting. Furthermore, smart LED solutions that can be managed remotely have been developed as a result of the Internet of Things' (IoT) growth, enabling more customized lighting experiences in both residential and commercial environments.
Smart LED technologies are revolutionizing street lighting in metropolitan areas to save operating costs and increase safety. Modern lighting solutions are becoming more and more popular in emerging economies, which presents a big chance for suppliers and manufacturers to increase their market share.
Numerous nations are funding the construction of infrastructure, including smart city projects that give priority to energy-efficient lighting options. Businesses that adjust to these changes may take advantage of a rising market segment focused on sustainability and creative lighting solutions, creating a favorable climate for the global LED lighting industry to flourish.
All things considered, the LED Lighting Market appears to have a bright future thanks to these trends and possibilities that are propelling expansion and change.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The LED Lighting Market is significantly driven by the increasing demand for energy-efficient lighting solutions amid rising energy prices and the global focus on sustainability. Several countries are implementing strict regulations to phase out traditional incandescent bulbs in favor of LED lighting.
For instance, the European Union has mandated that as of September 2021, all new lamps sold must meet strict energy efficiency criteria, which has amplified the shift towards LED technology. It is estimated that LED lighting can save up to 75% energy compared to traditional lighting types.
This demand is fostering innovation in the sector, as companies such as Philips and Osram are investing heavily in Research and Development to enhance LED technology and expand their product lines. The LED Lighting Market is projected to experience robust growth due to these regulatory frameworks and market transformation towards energy-efficient solutions.
Technological advancements in LED lighting are acting as a significant market driver for the LED Lighting Market. The integration of smart technologies and Internet of Things applications with LED lighting systems is revolutionizing how consumers and businesses use lighting.
For example, smart LED products enable users to control lighting remotely, optimizing energy consumption. According to the International Energy Agency, smart lighting solutions could save an additional 30% of energy used in buildings by integrating with smart home technologies.
Companies like General Electric are actively pursuing innovations that make their LED bulbs smarter, more efficient, and user-friendly, fuelling the growth of the LED Lighting Market.
Government initiatives promoting the adoption of LED lighting contribute significantly to the growth of the LED Lighting Market. Many governments around the world are launching campaigns to encourage the switch from traditional lighting systems to LED technology.
For instance, the U.S. Department of Energy has established programs aimed at boosting the adoption of energy-efficient lighting technology by providing rebates and incentives for LED lighting applications in both residential and commercial sectors.
It has been reported that such initiatives have led to nearly 50% of the traditional lighting market being replaced by LED alternatives in the U.S. This strong governmental support and funding initiatives are bolstering the growth trajectory of the LED Lighting Market.
The rapid pace of urbanization globally is another significant driver of the LED Lighting Market. As urban populations grow, cities are investing in infrastructure upgrades, including street lighting and public space illumination, where LED solutions are preferred for their energy efficiency and long life.
According to the United Nations, by 2050, around 68% of the world's population is expected to live in urban areas, leading to a surge in demand for effective lighting solutions. Regions like Asia-Pacific show robust urbanization rates, which drive the implementation of LED technology in smart city projects.
Companies such as Cree Inc. are strategically positioning themselves to benefit from these trends by supplying LED solutions for urban infrastructure, cementing their vital role in the LED Lighting Market's expansion.
The LED Lighting Market was characterized by its diverse installation types, primarily encompassing New Installation and Retrofit.
The New Installation segment held a majority portion of the market, demonstrating substantial growth potential with a valuation of 45.0 USD billion in 2024, escalating to 153.0 USD billion by 2035. This segment was primarily driven by ongoing urbanization and the surge in new construction projects globally, fueling the demand for energy-efficient lighting solutions.
Retrofit installations, valued at 34.61 USD billion in 2024, were not far behind, reflecting a strong commitment from various industries to upgrade existing lighting systems to more efficient LED technologies. The market growth for this segment is supported by governmental incentives for energy-saving technologies and increasing awareness of sustainability among consumers.
Furthermore, the Retrofit segment's value is projected to increase to 102.92 USD billion in 2035, reflecting its significant role in modernizing infrastructure while promoting energy efficiency.
These dynamics underscored the importance of both New Installations and Retrofits in the LED Lighting Market, as they catered to different consumer needs and market demands while pushing the industry towards greater sustainability and cost-effectiveness, driving overall market growth and innovation.
It is evident that as the LED Lighting Market continues to evolve under these segments, they will greatly influence trends, shaped by technological advancements and increasing regulatory support for energy-efficient solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The LED Lighting Market showcases a diverse range of product types, with significant contributions from both lamps and luminaires. The segment of lamps encompasses various designs, including compact fluorescent lamps and traditional incandescent replacements, which appeal to residential, commercial, and industrial applications alike.
Luminaries, on the other hand, play a crucial role in architectural and outdoor lighting projects, offering versatility and aesthetic appeal. The growth in sectors such as smart homes and urban development has propelled the need for innovative luminaire designs that integrate technology with functionality.
The market is expected to see further evolution, emphasizing sustainability and smart lighting solutions, driven by both environmental regulations and consumer preferences for efficiency.
The trends in this segment reflect a shift towards higher-quality lighting that enhances aesthetics while reducing energy consumption, contributing significantly to overall LED Lighting Market statistics and demonstrating the importance of product type in shaping market growth.
The LED Lighting Market has shown significant growth in its Distribution Channel segment, which is crucial for driving market accessibility and consumer reach. The segmentation of this market into Store-Based and Non-Store-Based channels reveals vital trends.
Store-based channels encompass retail outlets that serve as direct points of sale, allowing customers to experience products firsthand. This segment often plays a pivotal role in customer engagement and education about LED technologies.
Conversely, non-store-based channels, including e-commerce platforms, have gained traction due to their convenience and broader reach, allowing consumers to purchase LED lighting products without geographical restrictions. The growing trend towards online shopping and digitalization of retail is rapidly shaping consumer purchasing behaviors.
Thus, along with increasing awareness about energy efficiency, these channels present immense opportunities for growth within the LED Lighting Market. The interplay between these channels is key to the overall market growth, ensuring that consumers have access to diverse purchasing options tailored to their preferences.
The End-Use Application segment plays a critical role in this market, significantly driving demand and innovation. This segment is primarily classified into Indoor Lighting and Outdoor Lighting, each catering to distinct consumer needs.
Indoor Lighting encompasses residential, commercial, and industrial applications, contributing to energy efficiency and enhanced aesthetics. As households and businesses increasingly adopt LED technology, this category shows a major share in terms of market growth.
On the other hand, Outdoor Lighting is essential for public safety, urban environments, and outdoor events, with a focus on sustainability and energy conservation, making it equally significant.
The market is characterized by trends such as smart lighting solutions and increased awareness about energy-efficient products, which are further supported by government initiatives promoting the adoption of LED technology.
However, challenges such as competition and rapid technological advancements require continuous adaptation. Overall, the segment's growth is underpinned by the LED Lighting Market data, demonstrating a clear trajectory towards a more sustainable and efficient lighting landscape.
The Regional segment of the LED Lighting Market revealed a significant distribution of value, with North America dominating the market with a valuation of 30.0 USD billion in 2024, expected to reach 100.5 USD billion by 2035. This growth was driven by increasing energy efficiency regulations and the widespread adoption of LED technology in various sectors.
Europe followed closely with a market value of 25.0 USD billion in 2024, growing to 85.0 USD billion, benefiting from a strong focus on sustainability and environmental policies that propelled the demand for energy-efficient lighting solutions.
South America stood at a smaller market value of 8.0 USD billion for 2024 and is anticipated to grow to 25.0 USD billion, suggesting an increasing adoption of LED lighting as infrastructure develops. Asia Pacific, valued at 12.61 USD billion in 2024, is projected to reach 43.0 USD billion, highlighting its vast growth potential due to urbanization and industrial development.
Meanwhile, the Middle East and Africa, starting at 4.0 USD billion, is expected to see a decline to 2.42 USD billion, reflecting regional challenges in adoption pace. This geographical insight presented valuable information regarding the LED Lighting Market revenue and trends impacting the industry dynamics.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The LED Lighting Market has experienced rapid growth and transformation, driven by increasing awareness of energy efficiency, rapid technological advancements, and a shift towards sustainable lighting solutions. The market is characterized by intense competition among various players, each striving to enhance their market share and innovate technologically.
The competitive landscape features a range of established companies and emerging startups, all vying for customer preferences by offering a diverse array of products, including residential, commercial, and industrial lighting options. Critical factors influencing competition include product quality, pricing, distribution strategies, and technological innovation.
The rising demand for smart lighting solutions and connectivity has further fueled the competitive dynamics within the market, prompting companies to invest heavily in research and development to create advanced products that meet evolving consumer needs.
In this space, Luminaire stands out due to its strong market presence and the robust performance of its product lines. As a leader in the LED Lighting Market, Luminaire leverages advanced technology and sustainable practices to produce high-quality, innovative lighting solutions.
The company has established its brand as a symbol of reliability and efficiency, which resonates well with both residential and commercial customers. One of Luminaire's key strengths lies in its ability to provide customizable lighting options tailored to meet specific client requirements, enhancing the user experience.
Furthermore, the company maintains a strong supply chain and distribution network, ensuring timely product availability and fostering customer loyalty. With a focus on continuous improvement and adaptability, Luminaire remains competitive, capturing a significant share of the global market.
Cree is another major player in the LED Lighting Market, known for its innovative approach and cutting-edge technology. The company's offerings include a diverse range of lighting solutions such as LED bulbs, fixtures, and components designed for various applications, ranging from residential spaces to large-scale industrial projects.
Cree's strengths lie in its commitment to sustainability, which is reflected in the energy efficiency and longevity of its products. The company has achieved a strong global presence, thanks to strategic partnerships and a series of mergers and acquisitions that have bolstered its product portfolio and market reach.
Key products provide significant energy savings and enhanced performance, appealing to a wide array of customers. Additionally, Cree's emphasis on research and development allows it to stay at the forefront of technological advancements in the LED lighting market, continuously pushing the boundaries of innovation in product design and performance.
Luminaire
Cree
Signify
Samsung Electronics
Osram
Philips Lighting
Leviton
Seoul Semiconductor
Acuity Brands
LEDVANCE
Eaton
GE Lighting
Nichia
Epistar
With a market worth USD 94.5 billion in 2024 and expected to reach USD 251.5 billion by 2034 due to the replacement of streetlights and the adoption of horticulture lighting, Signify joined the list of leading LED lighting companies in April 2025.
After a German court ordered Signify to recall and destroy specific LED goods that violated Seoul Semiconductor's patents in December 2024, Conrad Electronic had to remove the items and pay fines of up to €250,000 for each infringement.
The combined industrial and commercial LED industry is expected to expand by USD 18 billion between 2024 and 2029 at a compound annual growth rate (CAGR) of 8.5%, driven by COB LED technology, smart city lighting, and reducing LED production costs. This growth was notable in June 2025.
Acuity Brands, Cree, Dialight, Seoul Semiconductor, and Signify are among the leading companies in the worldwide LED lighting industry, which is predicted to reach USD 208.4 billion by 2032 (CAGR ~11%), according to market experts on LinkedIn in June 2025.
The worldwide LED market was headed by Nichia, OSRAM, Samsung, Everlight, Acuity Brands, Philips, Epistar, Seoul Semiconductor, Cree, and Lumileds in February 2024. These companies also dominated the 2025 top-10 list.
Fueled by adaptive sensor-based systems, COB efficiency advances, and smart-streetlight rollouts like India's installation of 13.11 million units saving 8.8 billion kWh annually, LED lighting usage exploded in 2023 throughout smart cities and horticulture.
New Installation
Retrofit
Lamps
Luminaries
Store Based
Non-Store Based
Indoor Lighting
Outdoor Lighting
North America
Europe
South America
Asia Pacific
Middle East and Africa
| Report Attribute/Metric | Details |
| Market Size 2023 | 71.59(USD billion) |
| Market Size 2024 | 79.61(USD billion) |
| Market Size 2035 | 255.92(USD billion) |
| Compound Annual Growth Rate (CAGR) | 11.2% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD billion |
| Key Companies Profiled | Luminaire, Cree, Signify, Samsung Electronics, Osram, Philips Lighting, Leviton, Dialight, Seoul Semiconductor, Acuity Brands, LEDVANCE, Eaton, GE Lighting, Nichia, Epistar |
| Segments Covered | Installation Type, Product Type, Distribution Channel, End-Use Application, Regional |
| Key Market Opportunities | Energy efficiency initiatives, Smart lighting integration, Growing demand in the residential sector, Advancements in solar LED technology, Expanding applications in the automotive industry |
| Key Market Dynamics | Increasing energy efficiency, growing environmental awareness, Government regulations and incentives, Advancements in LED technology, and rising demand for smart lighting |
| Countries Covered | North America, Europe, APAC, South America, MEA |
LED Lighting Market Highlights:
Frequently Asked Questions (FAQ) :
The LED Lighting Market was valued at 79.61 billion USD in 2024.
By 2035, the LED Lighting Market is projected to reach a value of 255.92 billion USD.
The LED Lighting Market is anticipated to grow at a CAGR of 11.2% from 2025 to 2035.
North America is expected to dominate the LED Lighting Market with a projected value of 100.5 billion USD by 2035.
The New Installation segment of the LED Lighting Market was valued at 45.0 billion USD in 2024.
The Retrofit segment is projected to reach a market size of 102.92 billion USD by 2035.
Major players in the LED Lighting Market include Luminaire, Cree, Signify, Samsung Electronics, and Osram.
The Asia Pacific region had a market value of 12.61 billion USD in 2024.
Europe is expected to reach a market size of 85.0 billion USD by 2035.
Potential challenges may include increasing competition and market saturation that could affect growth rates.
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Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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