Key Market Overview:
LED Lighting market is estimated to reach over USD 289.95 Billion by 2030 from a value of USD 82.37 Billion in 2022, growing at a CAGR of 17.04% during 2022 to 2030.
LED stands for the light-emitting diode. LEDs are semiconductor devices that emits light when an electric current is passed through it. LED lights are highly energy-efficient and long-lasting, making them a popular choice for a wide range of applications such as lighting, displays, and signaling. LEDs are used in a number of electronic devices, such as smartphones, televisions, and computers. LED lights are highly energy-efficient compared to traditional incandescent or halogen lights.
Moreover, LED lights uses significantly less power to produce the same amount of light leading to significant energy savings. On average, an LED light consumes about 80% less power than an incandescent light bulb to produce the same amount of light. In addition, LED lights have a longer lifespan than traditional incandescent bulbs, thus reducing the frequency of replacement in comparison to conventional bulbs tends to be driving the growth of LED lighting market.
Advancements in LED technology have led to the development of new products, such as smart LED lights, that are programed to be controlled and monitored remotely through a smartphone or a tablet. Furthermore, LEDs can be designed in a variety of shapes and sizes, making them versatile lighting solutions for a wide range of applications, including residential, commercial, and industrial settings.
For instance, New York has planned to replace 250,000 streetlights with LEDs, followed by the replacement of decorative lighting in urban areas. 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 country.
LED Lighting Market Report Coverage:
|Market Size in 2030 (USD Billion)
|Lamps and Luminaries
|New and Retrofit
|By Sales Channel
|Direct, Wholesale/Retail, and E-Commerce
|Consulting, Installation, Maintenance, and Support Services
|Indoor and Outdoor
|Residential, Commercial, and Industrial
|Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Signify Holding, Acuity Brands, Savant Systems, Dialight PLC, OSRAM GmbH, Heliospectra AB, Nichia Corporation, Digital Lumens Inc., Hubbell, LSI Industries Inc., LumiGrow, Panasonic Corporation
LEDs use significantly less energy than traditional incandescent bulbs and have a much longer lifespan, that leads to cost savings for consumers and businesses thereby driving the growth of the LED lighting market. Moreover, LED technology is advancing rapidly increasing the efficiency and quality of LED lighting. Advanced 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. Additionally, LEDs are designed in a variety of shapes and sizes, making them versatile lighting solutions for a wide range of applications. Furthermore, government regulations and increasing environmental concerns such as greenhouse gas emissions are driving the adoption of LED lighting across the globe.
Although LED lighting are providing cost saving features over the period, however, the initial cost of purchasing and their installation tends to be higher than traditional lighting options. Some customers are also hesitant to adopt LED lighting due to concerns about the quality and durability of the products. LED lights are less efficient enough to produce the same quality of light as traditional incandescent bulbs which are further expected to hamper the market growth. Furthermore, there is limited awareness of the benefits of LED lighting among customers, which prone to be cumbersome for their production and marketing.
Advancements in technology are increasing the efficiency and quality of LED lighting providing new opportunities for applications in the sectors such as horticulture, automotive, and others. The scope of integrating LED lighting with smart technology creates new opportunities for energy savings, automation, and control for residential, commercial, and industrial customers. Furthermore, the demand for LED lighting is increasing in emerging markets, driven by increasing urbanization, rising disposable incomes, and growing awareness of energy-efficient lighting options. Therefore, aforementioned factors are expected to provide lucrative opportunities for market growth during the forecast period.
LED Lighting Market Segmentation:
Based on the product, the market is bifurcated into lamps and luminaries. The luminaries segment accounted for the largest share and is expected to dominate the global market due to 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 promoting the market growth.
The lamp segment is expected to register the highest CAGR growth in the forecast period due to its application in the residential sector. LED lamps have advantages such as being more energy efficient and more stable than traditional incandescent and compact fluorescent lamps.
Based on the installation, the LED market is segmented into new and retrofit. The retrofit segment is projected to hold a sizeable market share during the forecast period due to the need to reduce the energy consumption. 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. Retrofit technology improves the properties of LED lighting, advances operating efficiency, and upgrades lighting quality by increasing the color rendering index (CRI).
By Sales Channel
Based on the sales channel, the market is segmented into direct sales, retail/wholesale, and e-commerce. Direct sales refer to the sale of LED lighting products through company-owned stores or online platforms. The mentioned sales channel is often used by manufacturers and larger companies to sell their products directly to customers. Furthermore, LED lamps are distributed by wholesale and retail channels wherein manufacturers sell their LED lighting products to distributors or wholesalers which are then sold to the consumers. The sale of LED products can also be done through e-commerce channels by various online platforms such as Amazon, e-bay, Wall-Mart, and others.
Based on services, the market is segmented into consulting, installation, maintenance, and support services. Many companies offer installation services for LED lighting products that includes physical installation of the lights, as well as necessary wiring or electrical work. Several companies offer consulting services that assist customers in planning, designing, and implementing LED lighting systems. Additionally, some companies offer maintenance services for LED lighting products, which include regular cleaning and replacement of bulbs, as well as troubleshooting and repair services.
Based on the application, the market is segmented into indoor and outdoor. LED lighting products have various indoor applications such as homes, offices, schools, and hotels for general lighting. LED lights are also used in factories, and warehouses for various industrial applications. Moreover, these lights have also gained popularity in hospitals, clinics, and nursing homes for various healthcare facilities. In addition, LED lighting products are used for outdoor lighting applications such as street, parking lot, and floodlighting. LED lights are also used in outdoor advertising and billboards, architectural, and landscape lighting which is further driving the growth of this segment.
By End Use
Based on consumption by End-User the market is divided into residential, commercial, and industrial. The residential segment is valued to register strong revenue growth in the year 2021 due to the growing popularity of LED lights that radiate bright white light at a lower cost than traditional bulbs. LED lights are used in residential homes to emphasize the aesthetic, architectural, or artistic elements of a home thereby driving the growth of the residential segment. The commercial segment is also growing at a faster CAGR owing to its application in office spaces, bathroom lights, walls and ceilings, and reading lights contributing to the growth of the industry. These factors are increasing the application of LED lights in showrooms, theatres, spotlights, and warehouses.
North America is a significant market for LED lighting due to the presence of key market players such as Acuity Brands Inc., Panasonic Corporation, and others. Furthermore, government regulations and initiatives are promoting the growth of energy-efficient LED products. In North America, U.S. holds major market share for LED lighting due to increased investment, and new infrastructure development initiatives.
The Asia-Pacific is expected to witness fastest growth rate during the forecast period due to the rapid development of infrastructure projects in emerging markets increasing the demand for LED lights. 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. For instance, LED bulbs were distributed across the country under the UJALA (Unnat Jyoti by Affordable LEDs for All) Scheme.
LED Lighting Market Competitive Landscape:
Stakeholders have the opportunity to evaluate parameters such as SWOT analysis, merger acquisitions, and business strategies. Thus, the nature of the global market is primarily competitive or high due to the presence of large numbers of market industry players. Following are the prominent market players that consist of the latest market concentration currently operating in market circumstances.
• Signify Holding
• Acuity Brands
• Savant Systems
• Dialight PLC
• OSRAM GmbH
• Heliospectra AB
• Nichia Corporation
• Digital Lumens Inc.
• LSI Industries Inc.
• Panasonic Corporation
• 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.