The global LED lighting market size is poised to reach USD 132.96 billion by 2030. The market is estimated to grow at a CAGR of 10.5% from 2022 to 2030. Increasing construction activities and smart city initiatives in developing countries are creating opportunities for market expansion. Moreover, in some countries, stringent regulations and guidelines are imposed on the energy consumption and use of energy-efficient lights, benefitting the LED lights market. Furthermore, the companies have standardized the light installations at workplaces as per the rules and regulations. For instance, the U.S. Occupational Safety and Health Administration (OSHA) implemented workplaces to cover the light fixtures with protective plates, and installing fixtures above 7 feet.
LED lights provide high-lumen power by consumption of less power and offering better service life without any flickering. LED manufacturers are focusing on the integration of Wi-Fi, occupancy sensors, and daylighting for developing the product and enhancing market growth. Moreover, the rising awareness regarding the advantages of LED lights over other lighting technologies is changing the consumer shift towards LED, spurring the market growth.
Consumer safety and monitoring of environmental issues are crucial factors positively impacting the market expansion. With less consumption of power, LED lights deliver around 50,000 hours of illumination. In the healthcare system, initially, the use of halogen lights was high, but the use of halogen lights overhead surgical lighting was creating distress for doctors and other healthcare staff. Besides, halogen bulbs result in high energy consumption and heat emission. Thus, nowadays advanced technological lights are being installed in the medical systems for surgical lights, exam lights, endoscopy, and phototherapy. Thus, pertaining to the LED lights demand during the forecast period.
The outbreak of the COVID-19 pandemic negatively affected the global market. The halt of the supply chains, suspension of construction activities, closed workplaces, and lockdown implementations degraded the demand for LED lights, during the pandemic. However, as the situation is normalizing, the continuation of the construction projects is showcasing demand for LED lights.
LED Lighting Market Key Takeaways
- The LED luminaires segment dominated the LED lighting market accounting for over 55.7% in 2021. The segment comprises lights used for high bays, track lights, streetlights, troffers, etc. Increasing smart city projects among all the countries are burgeoning the segment growth
- The LED lamps segment is expected to showcase growth at the highest CAGR during the forecast period. The lamps have been very prominent in the residential sectors. For festivals, occasions, and big events, LED lamps are highly used. They are available in various designs and change the aesthetics. Thus, accelerating the segment growth.
- The indoor segment dominated the market accounting for over 68% of the total market share in 2021. The growth of the segment is attributed to the rising demand from supermarkets, malls, and retail stores for efficient lighting.
- The outdoor segment is anticipated to gain traction during the forecast period, witnessing segment growth at a significant growth rate. Rising infrastructure development projects regarding airports, highways, and public places are contributing to market growth. Moreover, the government initiatives to lower energy consumption is increasing the demand for LED lights for outdoor applications.
- The commercial segment led the market accounting for over 52.2% of the total market share in 2021. The demand for advanced lighting solutions coupled with less energy consumption is augmenting segment growth. Moreover, the workplace lights have been standardized and are expected to reach the regulations implemented by the governments. This has become the key factor in burgeoning market growth and is estimated to create market expansion during the forecast period.
- The residential sector is expected to augment the adoption of lamps, floor lamps, cabinet lights, and others. The advancement in the efficiency of LED is creating a pathway in the residential sector.
- The Asia Pacific market has accumulated over 42.8% of the total market revenue share in 2021. The presence of developing nations in the region is creating opportunities for market players to expand the market in the region. The launch of new products and the focus to improve energy efficiency is giving headway for market players to invest more in market growth across the region.
- North America and Europe accounted for the second and third highest market revenue shares followed by the Asia Pacific. The strict government guidelines pertaining to energy efficiency are boosting the market growth in the region. As per the EU regulations, the minimum efficiency requirement for lighting services in the region is set to 91 lm/W from September 2021.
LED Lighting Market Segments
- LED Lighting Product Outlook (Revenue, USD Billion, 2018 - 2030)
- LED Lighting Application Outlook (Revenue, USD Billion, 2018 - 2030)
- LED Lighting End-use Outlook (Revenue, USD Billion, 2018 - 2030)
- LED Lighting Regional Outlook (Revenue, USD Billion, 2018 - 2030)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- List of key players of the LED Lighting Market
- Acuity Brands Lighting Inc.
- Cree Lighting
- Digital Lumens Inc.
- LSI Industries Inc.
- Panasonic Corporation
- Siteco GmbH
- Signify Holding
- Semiconductor Co. Ltd.
- Zumtobel Group Ag