CAGR: 9.7%Current Market Size: USD 50.30 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2022-2029Base Year: 2021
The Global LED Lighting market is expected to grow from USD 50.30 billion in 2021 to USD 105.49 billion by 2029, at a CAGR of 9.7% during the Projection period 2022-2029. The growth of this market is mainly driven by increasing consumer demand for energy-efficient lighting systems.
In lighting systems, power consumption is an important problem. Lighting consumes 20–25% of all energy in many nations, making it the most obvious type of energy use. Therefore, increasing the efficiency of the lighting system can lead to considerable energy savings and a decrease in peak load. The best option for this issue is generally thought to be LED illumination. A form of light source called LED lighting emits light when power is supplied through it. Since LED lighting produces a lot of lumens for each watt used, it uses less energy than other conventional incandescent lights. Additionally, compared to conventional lighting, which wastes a lot of energy by turning it into heat, LED lighting can convert around 70% of energy into light. You may utilise LED lighting in your house in a variety of ways since it is effective and adaptable. LED strips are great because they can be used in a variety of situations and even wrapped around many objects. They are also great because they don't get too hot, allowing them to be used in areas where regular lighting may damage or even start fires. But you need a little bit of ingenuity and innovation to make the most of LED lights. Here are a few ideas to get you started. If you have a knack for interior design and making your houses look fantastic, you will probably be able to achieve this.
Sample Request: - Global LED Lighting Market
Market Dynamics:
Drivers:
A light-emitting diode, an electrical driver, a cooling system, and optics make up LED lighting. As opposed to standard high-wattage bulbs, these components are neither brittle nor sealed under high pressure. Maintenance expenses are significantly reduced when LED lighting technology is used. Significant energy savings are achieved by using LED lights, which use roughly 50% less electricity than conventional halogen, incandescent, and fluorescent lights. Additionally, LED lighting has low voltage operation, no UV emissions, a long lifespan, design flexibility, and durability. As a result, LED lighting is growing in popularity among companies and communities since it is more affordable and provides better service.
Restraints:
The utilisation of cutting-edge technology and specialised parts, such drivers and aluminium reflecting panels, raises the entire cost of manufacture for LED lighting. The lifespan of LED illumination is, nevertheless, greater than that of ordinary incandescent bulbs. As LED lighting gains popularity, more companies and people are using it in both commercial and residential settings. The difficulty, meanwhile, would be in setting basic prices that the vast majority of people could afford while also saving money on expenses like bills and upkeep.
Opportunities:
One substitute for conventional CFL bulbs is an LED luminaire, which offers benefits including lower cost, greater light quality, energy efficiency, longevity, consistency, and control. Additionally, both the industrial and commercial sectors employ LED luminaire extensively.
Challenges:
Few investors, architects, designers, developers, and construction companies are unaware of the potential energy and cost savings that efficient lighting offers. In comparison to other issues, lighting is generally considered to be a relatively minor issue in construction projects. Therefore, it is not always a priority to choose energy-efficient lighting options that best meet the needs of certain buildings or rooms. The equipment cost for luminaires and other hardware, the cost of labour to install it, and the expenditures related to power usage make up the costs connected with any lighting installation.
Segmentation Analysis:
The global LED Lighting market has been segmented based on Product, Application, End use and Regions.
By Product
The Product segment includes Luminaries and Lamps. The Luminaries segment led the largest share of the LED Lighting market with a market share of around 60% in 2021. The expansion of the market is being driven by an increase in the use of LED lighting to provide a better ambiance and visual mood, which helps to improve alertness. Luminaries, such as surface wall lights, streetlights, interior ornamental lights, track lights, pendant lights, and ceiling lights, are frequently employed in commercial and industrial environments. LED luminaires are up to 80% more energy-efficient than conventional lighting, providing more light per unit of output power.
By Application
The Application segment includes Outdoor and Indoor. The Indoor segment led the LED Lighting market with a market share of around 52% in 2021. Due to the growing usage of LED lighting in household settings, including homes, workplaces, hospitals, shopping malls, and other establishments. Due to its advantages, such as low energy consumption, extended durability, and simplicity of installation and operation, LED lighting is growing in popularity in interior settings. These elements are anticipated to fuel the segment's revenue growth. Additionally, due to its cost-effectiveness and design flexibility, LED lighting is being used more and more by architects and interior designers in their interior designs, which will also help to increase income.
By End-use
The End-use segment includes Industrial, Residential, Commercial and Others. The Residential segment led the LED Lighting market with a market share of around 28.08% in 2021. Because LED lighting, which contains tiny, solid bulbs that produce brilliant white light at a lower price than traditional lighting, is becoming increasingly popular. LED lighting also has a higher brightness output, a longer lifespan, and uses less energy. The demand for LED lighting in residential settings is anticipated to increase. Highlighting the home's architectural, aesthetically pleasing, or artistic aspects is one of the frequent residential uses for LED lighting. Furthermore, expanding the usage of LED lighting in office spaces, restrooms, showers, and reading lights will accelerate the segment's sales growth. Additionally, rising demand for LED lighting due to its security and eco-friendly characteristics is anticipated to fuel the segment's revenue growth over the Projection period year.
Global LED Lighting Market- Sales Analysis
The sale of LED Lighting types expanded at a CAGR of 6.2% from 2015 to 2021.
Customers are drawn to LED lighting because it has benefits including lower heat emission, brighter light, energy savings, and cheap cost. The advantages of LED lighting over other types of lighting, as well as the strong demand for residential and commercial applications from the building industry, are what are likely to propel the market.
In order to draw customers, automakers are now concentrating on releasing automobiles with a distinctly contemporary appearance. LED lighting solutions provide manufacturers the freedom to create goods with intricate designs in small, aesthetically pleasing packages, which has led to a high rate of adoption of LED lighting solutions by the automobile industry. The target market is anticipated to expand as a result of the increased adoption of LEDs by automakers in headlight, fog light, and interior illumination applications. The industry is expanding as a result of quick advances in semiconductor technology, favourable government legislation, and programmes to promote the use of LED lighting.
Thus, owing to the aforementioned factors, the global LED Lighting Market is expected to grow at a CAGR of 9.7% during the Projection period from 2022 to 2029.
By Regional Analysis:
The regions analysed for the LED Lighting market include North America, Europe, South America, Asia Pacific, the Middle East and Africa. The North America region dominated the LED Lighting market and held a 35% share of the market revenue in 2021.
Global LED Lighting Market- Country Analysis:
Germany’s LED Lighting market size was valued at USD 1.81 billion in 2021 and is expected to reach USD 4.48 billion by 2029, at a CAGR of 12% from 2022 to 2029. Germany is considered as one of the first countries to introduce LED industry regulations, having began pushing its semiconductor lighting technology as early as 1998 with its "21st Century Lighting Project." However, due to the delay in standardisation, the European government was unable to promote LED lighting until 2010 successfully. The European government phased out incandescent light bulbs and began concentrating on the deployment of energy-efficient LED lighting systems to address the issue of power shortages. One of the countries with the highest LED penetration rates today is Germany
China’s LED Lighting’ market size was valued at USD 1.50 billion in 2021 and is expected to reach USD 3.21 billion by 2029, at a CAGR of 10% from 2022 to 2029. LED lighting is quickly displacing traditional lighting products in China due to its many advantages. By providing substantial subsidies for the use of LED products, the Chinese government is also substantially contributing to the sector's growth. Additionally, the Chinese government has outlawed incandescent bulbs, with the National Development and Reform Commission initially releasing the country's strategy for the phase-out of incandescent lights in November 2011. Other significant variables influencing the LED industry in China are expanding infrastructure, falling costs, regional energy-saving goals, and increasing urbanisation rates.
India's LED Lighting market size was valued at USD 1.35 billion in 2021 and is expected to reach USD 2.68 billion by 2029, at a CAGR of 9% from 2022 to 2029. The use of LEDs in headlamps, rearlamps, turn signals, and brake lights is a profitable opportunity in the continuously expanding automobile sector. The demand for LED lights in India is anticipated to be driven by a number of other significant reasons, including rising infrastructure expenditures, a rapid expansion of street lighting systems, a drop in the average price of LEDs, and several government and forthcoming smart building initiatives.
Key Industry Players Analysis:
To increase their market position in the global LED Lighting business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, type developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
9.7% |
Market Size |
50.30 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Product, By Application, By End-use and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
GE Lighting, SMART Global Holding, Sharp Corporation, Havells, Eaton Corporation (Cooper Industries PLC), Samsung Electronics Co. Ltd., Philips Lumileds Lighting/ Signify NV, Toshiba Lighting and Technology Corporation, Acuity Brands Lighting, Inc., Hubbell Lighting, Inc., Osram Licht Ag, and Surya. |
By Product |
|
By Application |
|
By End-use |
|
Regional scope |
|
Scope of the Report
Global LED Lighting Market by Product:
Global LED Lighting Market by Application:
Global LED Lighting Market by End-use:
Global LED Lighting Market by Region:
The global LED Lighting market is expected to grow with a 9.7% CAGR during the Projection period.
Global LED Lighting key market players are Abbott Laboratories, Thermo Fisher Scientific Inc., Bio Rad Laboratories Inc., Roche Holding AG, GE Healthcare, Illumina, Inc., Siemens AG, Bristol-Myers Squibb, Toshiba Medical Systems Corporation, Koninklijke Philips N.V., and Agilent Technologies Inc.
North America currently dominates the LED lighting market.
Lack of awareness among people is the challenge faced by LED lighting market.
Political Factors- Industrial manufacturing firms can feel as though changing governmental policies regarding environmental laws, energy use, and other contentious political problems are at their mercy. Even with the best of intentions, every change in environmental policy may necessitate a series of process modifications, equipment upgrades, and other changes that could put further strain on already limited finances. And it can be very difficult for businesses to adapt and still satisfy production expectations given the possibility for those shifts to swing widely every few years with changes in Congress and the White House.
Economical Factors- In addition to increasing plant safety significantly, industrial LED lighting can reduce incident rates and the likelihood of workers' compensation insurance claims. Poor lighting is the primary cause of slip, trip, and fall accidents as well as contact with objects and equipment, which are the most frequent types of occurrences, second only to transportation accidents, and they account for around $250 billion in annual occupational injury costs. Employee visibility and colour clarity are improved thanks to LED lighting' light output, which has a significantly better CRI than light from traditional fixtures. According to research, this increased visibility helps personnel recognise trip hazards more accurately by almost 25% and notice peripheral movements more accurately by over 80%.
Social Factor- Additionally, studies demonstrate that the clean, clear light produced by contemporary LEDs creates a more welcoming and energising work atmosphere where employees feel more aware. The white light of LEDs has demonstrated to reduce fatigue by a factor of 5 by simulating a daytime look that aids in suppressing melatonin levels10, which are major factors to accidents and injuries. This heightened attentiveness has been demonstrated to enhance workers' performance on standardised tests and reduce the amount of time needed to complete the test10. Increased efficiency and accuracy lead to increased performance and productivity in a business setting.
Technological Factors- LED light is where human evolution of light began. Today's most effective system, according to research, is LED technology. A semiconductor (electrical) device called a light-emitting diode (LED) limits current flow in one direction. There are two regions in semiconductor diodes: the p region (positive charges) and the n region (negative charges). The electrons pass the n region into the p region when voltage is applied. Energy is released by an electron as it passes through the p-n junction. Visible light is created by this energy's dispersion.
Environmental Factors- Beyond simply adhering to legislative requirements, however, investing in industrial LED lighting can be a wise decision for the benefit of your own business. A healthier bottom line results from lower energy expenses, which are obviously directly correlated with lower energy consumption. For instance, the Zero Mountain cold storage facility's switch to LED lights reduced its overall energy use by more than 1.3 million kWh, saving the business close to $100,000 annually. By converting to LED lighting, Rockline Industries was able to reduce its energy costs from $100,000 to only $25,000. The issue is more complex than just energy savings. Industrial LED fixtures also significantly lower the expenses associated with maintaining lighting systems for businesses due to their longer lifespan performance.
Legal Factors- While regulatory requirements that force industrial manufacturers to alter their business practises may at first appear to be barriers to productivity and profitability, the truth is that switching to more environmentally friendly, highly efficient LED industrial lighting has much more advantages than simply complying with a requirement. Reduced energy and maintenance costs, increased plant safety and efficiency, and protection against altering political legislation can all result in genuine bottom-line benefits that directly impact operational advantages.
List of Table
List of Figures