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LED Lighting Market Size, Forecast, 2027 | Industry Trends Report

LED Lighting Market Analysis Report By End Use, By Product, By Application And Segment Forecasts From 2020 To 2027

Report ID: MN17612646  |  Published: May 2020  |  No of Pages: 147
Format: Electronic (PDF)  |  Industry: Consumer Electronics  |  Publisher: Grand View Research

Industry Insights

The global LED lighting market size was valued at USD 54.0 Billion in 2019. It is expected to witness growth with a CAGR of 10.8% over the forecasted years, 2020 to 2027. This growth can be attributed to increasing awareness among the millennial population on account of their power-efficient features coupled with initiatives being undertaken by governing bodies over their usage for sustainable development.

The reduced prices of these LEDs and emergence of transformed energy policies are further expected to promote market growth in the upcoming years. Several countries have also started providing attractive rebates and incentives to promote the usage of such lights.

U.S. LED lighting market

LED lights have high performance efficiency, are reliable and have more life span as compared to traditional incandescent lights which is expected to promote its growth in the upcoming years. In addition, cost effective prices and low emission of heat is further anticipated to drive the market growth from 2020 to 2027. Moreover, stringent rules and regulations being implemented by countries like U.S., Europe, Canada, and China about conventional energy consumption is further expected to drive the market growth in the upcoming years.

Several standards like CASBEE, BREEAM, and green standard are being imposed to bode the usage of LEDs across the globe. In addition, governing authorities have also stared providing rebates and incentives on the purchase of LED lights over the conventional lights. Furthermore, rising trend of smart homes and smart illuminations has provided to be a boon for the LED lighting market.

Product Insights

The product segment of LED luminaires held the largest share across the global market in 2019 owing to their wide usage for industrial land commercial light segments. As they are more costly than LED lamps, they hold a major share across the global market. Installations of such luminaires at highways, streetlights, troffers, track lights, suspended pendants, and downlights are gaining popularity worldwide. Moreover, their feature of providing more light per unit of the power consumed is expected to further fuel up their demand.

The segment of LED lamps is expected to grow at a CAGR of 11.8% from 2020 to 2027 due to its rising adaptability across the developing countries. This can be associated with several benefits like more energy efficiency, temporal stability, and robustness. Moreover, their availability in forms like reflectors, T-lamps, MR-16 lamps, and A-lamps is expected to add up to its rising usage. The CFLs are being replaced by LED lights owing to their efficiency, low power consumption, and affordability.

End-use Insights

The commercial end-use segment dominated the global LED lighting market in 2019. This growth can be attributed to the boosting demand for LED downlights and troffers across the globe. The segment of high-end lightening market includes museums, exhibitions and galleries lighting which make use of downlights, projectors, and reflectors. In addition, the demand of LED lights having higher brightness is expected to surge in the upcoming years owing to its rising usage for industrial applications.

The residential segment is also projected to grow significantly owing to their wide application in appliances like table floor lamps, pendants, and table lamps. This segment has grown at a faster pace since the last few years owing to their features like low price and subsidiary programs being implemented by various authorities.

Application Insights

In 2019, the indoor application segment held the largest share across the global market and generated revenue of USD 37.31 Billion. It is also expected to continue its dominance over the forecasted period, 2020 to 2027. This growth can be attributed to rising usage of LED lights across offices, hospitals, educational institutions, and malls. Moreover, these lights act as a better alternative to the incandescent, HID (high intensity discharge) and fluorescent lamps.

Global LED lighting market

The outdoor application segment is also anticipated to grow at a moderate pace in the upcoming years. This can be associated with rising usage of LED lights across the majority of commercial campuses, government institutions, airports, roadways, and highways. Various initiative programs like the LightSavers program are being implemented to promote the usage of these lights instead of conventional ones. Moreover, surging need for high-resolution signs and billboards across pedestrian and traffic zones is also anticipated to further fuel up the market demand in the upcoming years.

Regional Insights

Asia Pacific held the largest share of around 41.8% across the global market in 2019. It is also anticipated to continue its dominance from 2020 to 2027 owing to surging number of initiatives being undertaken by governing bodies to promote the usage of energy saver LEDs. Moreover, presence of major players across this region in countries like China, Japan, and Taiwan is also anticipated to contribute to the regional market growth.

The market across U.S. is also anticipated to register significant growth in the upcoming years. This growth can be attributed to several factors like rapid technological advances being made in the production techniques, huge investments in R&Ds to develop more energy-efficient lights for commercial as well as industrial purposes.

COVID-19 Impact Insights

The market growth for LED lighting across the globe has been hampered owing to the ongoing COVID-19 pandemic. Travel restrictions and the imposition of lockdown has resulted in shut down of organizations, schools, colleges, and public places. As China is the major supplier for LED lighting, hindrance in the supply chain has adversely affected the market growth. Moreover, the lack of availability of a skilled workforce, raw material, and price fluctuations has significantly reduced the demand for LED lighting. But, investments being undertaken by the key players for the development of technologically advanced products are anticipated to pave way for the market growth to some extent over the post-pandemic period.

LED Lighting Market Share Insights

The market is competitive with around the top 5 players acquiring major share across the global market. The key players in this industry are Cree, Inc.; Signify Holding; Acuity Brands; and Osram GmbH. These players are constantly engaged in product development and innovation to gain a competitive advantage over other key players. In addition, various marketing strategies like acquisitions and mergers are being undertaken by these players to penetrate deeper into the emerging markets. Several manufacturers of semiconductors are practicing the latest trend for forward integration to penetrate in the MED lighting market.  

These players are also focusing on methods of direct selling and are establishing a stronger distribution network. They were generally importing the components from countries like China at low cost and then assemble the parts under their production facilities. However, since the last few years, they have been enforced by the statutory governing bodies to restrict this practice and stick to the energy-saving standards.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Revenue in USD Billion and CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country Scope

U.S., Canada, Germany, U.K., China, India, Japan, Brazil, Mexico

Report coverage

Revenue forecast, company share, competitive landscape, and growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub segments. For the purpose of this study, Million Insights has segmented the global LED lighting market report based on product, end-use, application, and region:

• Product Outlook (Revenue, USD Billion, 2016 - 2027)
    • Lamps
        • A-Lamps
        • T-Lamps
        • Others
    • Luminaires
        • Streetlights
        • Downlights
        • Troffers
        • Others

• Application Outlook (Revenue, USD Billion, 2016 - 2027)
    • Indoor
    • Outdoor

• End use Outlook (Revenue, USD Billion, 2016 - 2027)
    • Commercial
    • Residential
    • Industrial
    • Others

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa

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