LED Lighting Market

Global LED Lighting Market Size (2024 to 2029)

Global LED lighting market is projected to hit USD 78.9 Billion in 2024, with a forecasted CAGR of 8.5%, soaring to USD 118.4 Billion by 2029. This growth reflects the increasing adoption of energy-efficient lighting solutions worldwide.

When an electric current is conducted through a light-emitting diode (LED), it emits light. When current-carrying particles collide within a semiconductor material, light is created. The energy required for electrons to pass the band gap of semiconductors determines the hue of light. Red, yellow, blue, green, white, purple, bi-color, tri-color, and infrared are some of the hues that an LED may create. Indoor and outdoor illumination, as well as a backlight source in LCD displays, are all common uses for LEDs. LEDs are now one of the most energy-efficient lighting sources available, and they are likely to overtake other technologies in the near future. LED lighting is a type of light-emitting diode that is increasingly being used in lighting fixtures. It is a semiconductor lighting source that is used in a variety of applications, including vehicle illumination, general lighting, and backlighting. When compared to previous technologies in the same field, LEDs are smaller, have a longer operating life, and have a lower total cost of ownership. LED prices have dropped to the point where they are now the most cost-effective option in every application.

LED lighting is becoming more widely accepted in practically all major end uses, including industrial buildings, residential and commercial buildings, and outdoor application areas. LED lighting solutions have a higher energy efficiency and a longer life span than traditional lighting systems. The LED light has a lifespan of approximately 50,000 hours of brightness and uses a fraction of the energy that standard bulbs and CFLs do. Longer longevity, energy economy, more environmental friendliness, higher durability, reduced heat, and smaller size are just a few of the advantages that LED lights have over older and traditional bulbs.

MARKET DRIVERS

Various factors, like macroeconomic conditions, have control over new buildings and, as a result, new lighting installations within the global LED Lighting Market. Less replacement, less heat, and cheaper pricing are all driving up demand for LED lights round the world, bolstering the worldwide LED industry. Such characteristics, combined with a rise in demand for cost-effective lighting solutions from communities and buildings, will drive the worldwide LED lighting market forward. Other than that, the worldwide LED lighting market is predicted to be bolstered by innovation and alterations in technology, as well as diverse product designs by LED light producers. The world LED Lighting Market is additionally profiting from increased government initiatives for energy saving. LEDs are highly efficient, dependable, and have an extended life duration, all of which are expected to extend their use in both indoor and outdoor environments. In comparison to incandescent lights, these lights are more cost-effective, providing roughly 50,000 hours of illumination for a minimal amount of energy. They're also an honest substitute for incandescent lights thanks to their lower operating costs and fewer heat losses. Product demand has been boosted by technological improvements like the change from traditional to green lighting, improved energy efficiency standards, and lower pricing. Furthermore, expanding government efforts toward sustainable development, as well as tightening regulations on inefficient lighting systems, are major growth drivers.

MARKET RESTRAINTS

Governments provide incentives and subsidies for replacing traditional bulbs with LED products, with greater adoption of LED products around the world. Smart lighting is additionally expected to supply profitable prospects within the industrial and commercial sectors. However, problems like an absence of data about the expense of installation and the emergence of different technologies are limiting the market's growth.

Impact of COVID-19 on the LED lighting market

The COVID-19 pandemic has shown a negative impact on the LED lighting market. A disruption in the global supply chain caused delays and a shortage of equipment and LED lighting products. Construction activities have stopped worldwide due to government restrictions, which have reduced the demand for the product in residential and commercial segments. The positive factor could be increased healthcare sector demand as increased healthcare lighting as the hospitals and other healthcare facilities have upgraded their lights to improve sanitization. The shift towards the online segment as the increased preference for online purchases increased the sales to the market. Increased focus on energy efficiency and sustainability among consumers caused increased demand for LED lighting products. Overall negative impact during the pandemic period and increased market demand started post-pandemic.

REPORT COVERAGE

This research report on the LED lighting market has been segmented and sub-segmented into the following categories.

LED Lighting Market - By Product Type:

• Luminaires
• Lamps

Luminaires are expected to have the dominant share in the Global LED Lighting Market During the Forecast Period. In the commercial and industrial lighting sectors, luminaires are widely employed. Because luminaires are more expensive than standard LED lamps, they have a larger market share than LED lamps. Growth is primarily driven by new installations. For diverse purposes, it includes lights used in streetlights, high bays, downlights, track lights, troffers, and suspended pendants. The luminaires provide more light per unit of output power and are easier to manage, allowing opticians to use them more effectively while using less energy to illuminate the same area. Yet, given the present pandemic circumstances, international illumination events for product promotion have been canceled or postponed owing to COVID-19, however, internet conferences can still serve the current pandemic's function.

Lamps are expected to have the highest CAGR growth in the Global LED Lighting Market during the Forecast Period. As a result of rising usage in developing countries, These lights have a number of advantages over incandescent lamps, including durability, energy efficiency, and the ability to maintain proper temporal stability. This factor is expected to hasten the transition away from CFLs and toward light-emitting diodes. Furthermore, strengthened regulatory roadmaps to phase out ineffective light bulbs would boost demand in both residential and commercial applications.

LED Lighting Market - By Installation Type:

• Retrofit Installation
• New Installation

Retrofit is expected to have the dominant share in the Global LED Lighting Market During the Forecast Period. The increased replacement of incandescent lights with energy-efficient light sources such as LED bulbs is a major driver driving the retrofit installation industry forward. Older generation lamps are gradually being phased out, and fixtures are being retrofitted with LED lighting, which has a longer life span and uses less energy.

LED Lighting Market - By End-User:

• Outdoor Lighting
• Indoor Lighting

Indoor Lighting is expected to have the dominant share in the Global LED Lighting Market during the Forecast Period. Over the last few years, the use of LED lighting in offices, retail stores and malls, hospitals, educational facilities, and other settings has increased significantly. LEDs' widespread use as a replacement for fluorescent, high-intensity discharge (HID), and incandescent lamps has prepared the way for the widespread use of interior light-emitting diode illumination.

Outdoor Lighting is expected to have a steady CAGR growth in the Global LED Lighting Market during the Forecast Period. Airports, corporate campuses, industrial, government, and healthcare facilities, roads and roadways, and public locations such as signage and traffic signals are all examples of outdoor applications. Public policy actions and municipal support can have a significant impact on demand.

LED Lighting Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Asia-Pacific is expected to have the dominant share in the Global LED Lighting Market During the Forecast Period. This can be due to rapid infrastructure-building activities in developing countries, which, together with increased government programs linked to energy conservation, are likely to boost LED lighting demand. Due to the developing construction sector in these nations, as well as the existence of a significant number of players operating in these countries with a focus on introducing new products, China, Japan, and India are likely to be major contributors to market growth.

Europe is expected to have the next dominant share in the Global LED Lighting Market during the Forecast Period. This can be ascribed to the government's strict energy efficiency policies and programs. The minimum efficiency criterion for general service lighting was established at 91 lm/W, per EU legislation. Similarly, the European Union began utilizing an A (efficient) to G (inefficient) scale, with the goal of assisting customers in making better-informed purchasing decisions when it comes to purchasing energy-efficient electronic items.

KEY MARKET PLAYERS

Phillips Lighting Holding B.V., General Electric Company, OSRAM Licht AG, Cree, Inc., Cooper Industries, Inc., Virtual Extension, Dialight plc, Zumtobel Group AG, Samsung, Sharp Corporation

RECENT HAPPENINGS IN THE MARKET

• New common-mode chokes for LED lighting applications have been introduced by Schaffner. The new ED100/ED101 EMC filter series has been created exclusively for the needs of LED driver circuits. The common-mode inductance of the new filter is matched by a significant differential-mode inductance.
• The new Artemis horticulture LED lighting range from Altman Lighting is now available. Altman Lighting has been providing unique lighting solutions to theatres, schools, and places of worship for than 70 years. Indoor commercial and home growers can now do so as well.