Commercial Lighting Market Size, Trends & Growth (2022 - 2027)
The LED or light-emitting diode is a semiconductor light source, which has the ability to convert electrical energy into light energy. In recent years, due to increasing environmental degradation and energy problems, there has been a great demand for LED lighting. This type of lighting is very cost-effective and durable. In addition, it is also more visually attractive. Therefore, the market demand for industrial commercial LED lighting is expected to increase further in the coming years.
By switching to energy-efficient LEDs, an estimated $ 18 billion in electricity cost savings can be achieved. There is a growing need for energy savings around the world, which is creating opportunities for the market. The transition to energy-efficient lighting is expected to reduce global electricity demand for lighting by 30-40% by 2030. Countries around the world are widely adopting LED lighting. For example, New York planned to replace 250,000 LED streetlights, followed by the replacement of decorative lights in urban areas. Barcelona (Spain) has deployed more than 3,000 smart street lamps based on LED technology, which gathers information on pollution, humidity, noise, and the environment in general. Growing consumer awareness of the environment and the sustainability of these lamps, coupled with government mandates for energy efficiency, are driving the growing adoption of LEDs.
IMPACT OF COVID-19 ON COMMERCIAL LIGHTING MARKET:
The COVID-19 pandemic has severely affected the LED lighting market by disrupting the supply chain, delaying manufacturing, and impacting the lighting industry. The construction industry has also seen a decline, leading to a decline in demand for lighting products. While countries like Australia have not stopped construction, projects have been closed for a considerable period in the United States, India, and many European countries. Additionally, the slowdown in retail, manufacturing, and other sectors has resulted in lower demand due to a reduced budget for a new warehouse or retail space. The adoption of LED lighting products would be further affected as the suppliers plan to increase the prices of the products. The COVID-19 outbreak had a significant impact on the lighting industry due to lockdowns in many countries and supply chain disruptions. Therefore, most OEMs and lighting integrators see a shortage of electronic components, such as LED chips and drivers. This created an imbalance, which resulted in a gap between supply and demand and an increase in the prices of lighting products. For example, Signify has announced a temporary price hike for all electronic components for LEDs and lamps, as its supply chain costs are increasing due to the pandemic. A disruption in the supply chain would create an imbalance in the supply and demand equation and create pressure between entities in the smart lighting ecosystem.
Drivers and Restraints of Commercial Lighting:
Currently, there are several smart city projects underway around the world that provide opportunities for technology companies, technology service providers, public service providers, and consulting firms. The efficient use of electricity is one of the main objectives of the infrastructure of smart cities. Smart cities are considered the engine of sustainable economic growth in a country. Energy efficiency, resource sustainability, and advances in digital technologies have led to the emergence of the concept of smart cities. Smart lighting application is expected to play an important role in achieving sustainability and energy saving.
The initial cost of smart lighting, along with the cost of integration and installation services, is high. Smart lights include hardware components such as dimmers, switches, sensors, control systems, and software. Therefore, the installation cost of smart lighting is higher than that of conventional lighting. This is primarily due to the need for very expensive software, control systems, and LED light sources for smart lighting solutions. This makes it difficult to adopt smart lighting control systems.
Commercial lighting Market Segmentation:
LED luminaires became the largest segment and accounted for 56% of global revenue in 2019. The luminaires are widely used in the commercial and industrial lighting segments. They are more expensive than conventional LED lamps; therefore, luminaires represent a larger market share than LED lamps. The new facilities primarily stimulate growth. It includes lights used in street lighting, tall windows, downlights, floor lamps, troffers, and pendant lights for various applications. Fixtures provide more light per power output and are easier to control, allowing optical designers to use them more efficiently and use less light to illuminate the same area.
The indoor lighting segment is projected to hit the highest CGAR in the forecast period. Increasing construction of buildings is likely to propel the demand of the market. The outdoor lighting segment is positioned second in leading the largest shares of the commercial lighting market.
The smart interior lighting market is expected to occupy the largest share due to high demand in commercial spaces. In these applications, smart lighting is an essential element in creating a modern workspace that appeals to clients with changing preferences. It continues to help owners create a flexible work environment, reduce expenses, improve work efficiency, and create quality lighting that enhances the occupant experience. Therefore, the adoption of smart lighting in commercial spaces is gaining popularity and presents great opportunities in the near future due to smart city initiatives from governments around the world.
Commercial Lighting Region-wise analysis:
Marked Segmentation based on the region:
North America is ruling with the highest shares of the market. Increasing economic and rising disposable income in urban areas are boosting up the demand for the commercial lighting market in North America. Growing prevalence for modern technologies is ascribed to bolster the growth rate of the market in this region.
Asia Pacific (APAC) is expected to be the fastest-growing market for the commercial lighting market. Projects related to modernization and infrastructure development, such as smart cities, in the region, would also stimulate demand for smart street lighting, thus driving the growth of the commercial smart lighting market in this region. The increasing number of smart cities and infrastructure projects undertaken by governments will create several new opportunities for energy-efficient lighting and advanced lighting systems in the years to come.
The Middle East and Africa
Key Players of Market:
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