Global LED Lighting Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report - Segmented By Product Type (Luminaires and Lamps), Installation Type (Retrofit Installation and New Installation), End-User (Outdoor Lighting and Indoor Lighting) and Region (North America, Europe, APAC, Latin America, Middle East and Africa) – Industry Analysis (2024 to 2029)

Updated On: January, 2024
ID: 8313
Pages: 175

Global LED Lighting Market Size (2024 to 2029)

The size of the global LED lighting market is projected to hit USD 78.9 Billion in 2024 and USD 118.4 Billion by 2029, registering a CAGR of 8.5% from 2024 to 2029.

The global led lighting market size is expected to be valued at USD 118.4 bn by 2029.

Current Scenario of the Global LED Lighting Market

The market is shifting towards eco-friendly lighting and sustainability is the motto of today’s time. LED lights are leading the industry due to their low energy consumption and are ecologically viable. The rising traction for smart lighting is also driving the growth of the LED lighting market. The addition of distance control, adjustive and adaptive color, and brightness via voice assistants or smartphones is making them even more desirable among the urban population. The demand for LED lighting products is anticipated to soar in the coming years due to automation systems that answer the preferred choices and timings. These lights also come with no prerequisite requirement and can be directly put to use which makes them more attractive. Another trend elevating the share of the LED lighting market is the minimalist design. This growing popularity is expected to continue this year as well. This is because its basic type, neutral colors, and clean lines give a modern and classy feeling by mixing the lights in the airspace. Additionally, LED lights with IoT connectivity, alarms and alerts to improve security and safety are fuelling the expansion of the market. Several companies have now introduced these intelligent lighting solutions to fulfill public demands and provide superior customer satisfaction.

MARKET DRIVERS

Technological advancements such as smart lighting, energy harvesting and Li-fi technology are propelling the growth rate of the LED lighting market.   

The recent advancements in LED lighting are changing the dynamics of the future industry. This shift is driven by the developments in this lighting technology which includes energy efficiency, new applications and smart controls. Also, the efficacy of Luminaires has significantly increased in the last few years. As of now, the research and development activities are emphasising on improving the productivity of semiconductor supplies and materials to build LEDs. Moreover, further progress has been made in the Colour Rendering Index (CRI) and temperature controls to achieve higher colour accuracy as well as display a wide variety of colour temperatures. This will help satisfy the consumer demands and needs of many diverse applications. There is a demand for effective heat removal concerning LED performance and its lifespan.

Currently, smart lighting is in the trend. It’s been various technological advancements in this area. It begins with smart home platforms like Apple Home Kit, Google Assistant and Amazon Alexa are progressively incorporated with smart LED lights. They all come with a voice command feature which allows users to control lights and becomes an integral part of the smart home ecosystem.  Apart from this, the development of innovations in wireless communication technologies also happened including Zigbee and Z-Wave. This results in improvement in smart LED light’s connectivity and also facilitates remote controlling via any intelligent or home automation device or mobile phone application.

MARKET RESTRAINTS

Low-quality materials and final products are decreasing the expansion of the LED lighting market.

One of the prime complaints by customers is the sub-standardness of lighting products. Also, the non-compliance with security and safety guidelines for these LED items in developing countries is reducing the trust of consumers. For instance, there is a huge market for cheap and low-quality LED lights in India and it is flooded by Chinese-origin goods. People there have zero trust in these products and as a result, they buy these for one-time use since they know their quality.

MARKET OPPORTUNITIES

The advancements in Li-Fi technology are expected to provide potential prospects for the LED lighting market.

Apart from the growing demand for power-efficient, durable and tenable LED products, the light-based data transmission called Li-Fi technology is rapidly emerging in the market. Its ultra-fast transfer speed and security is making it a promising substitute for the current wifi systems. Additionally, the development of novel micro LED design which includes Micro-sized Gallium Nitride (GaN) light emitting diodes (mirco-LEDs). It is an important candidate for visible light communication and light fidelity because of its large bandwidths. Both factors are anticipated to elevate the market share of LED lighting.

MARKET CHALLENGES

Weak core technology and brand influence of domestic companies are major hurdles for the LED lighting market.

The industries of developed economies are different from that of domestic ones. Europe and the United States have stringent access limits and advanced trust management systems. However, the core technologies like high-end materials, energy management, heat dissipation and optical design are in poor condition in developing countries for a long time.

REPORT COVERAGE

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

8.5%

Segments Covered

By Product Type, Installation, End User, and Region

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

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

Market Leaders Profiled

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

 

SEGMENT ANALYSIS

Global LED Lighting Market Analysis By Product

The luminaires segment holds the bigger share under this category of the LED lighting market. It is shifting towards sustainability. Also, the focus is no further advancing with energy-efficient design, complying with environmental laws, and meeting customer choices. Further, companies are utilizing ecological supplies and sunlight harvesting methods to reduce power usage and harmful environmental effects. In addition, governments worldwide are enforcing favorable policy-making to accelerate the adoption of safe and durable lighting choices. As per the IEA, the target of 100 percent LED lighting by 2025 has been included in the Net Zero Emissions by 2050 scenario.

Global LED Lighting Market Analysis By Installation

The new installations segment is quickly grappling with the share of the LED lighting market. The rising demand for power-saving lighting products, along with the developments in LED technology, is propelling the growth of this segment. Moreover, the increased application in the construction sector, which has been severely affected by COVID-19, coupled with the rapid pace of urbanization in developing countries, is fuelling the revenue from the new installation category. Furthermore, strict energy efficiency laws and cognizance towards environmental safety are encouraging to actively engage in the integration of these lights while constructing.

Global LED Lighting Market Analysis By End-User

The LEDs are extensively used for indoor lighting which is driving the segment’s growth. Another factor propelling the industry is smart indoor lighting. The rising need for high-intensity discharge and luminous bulb alternatives from shopping malls, retail stores and supermarkets is accelerating the growth rate. Moreover, nowadays a new concept called human-centric LED lighting (HCL) is gaining traction because it creates ambient light conditions and surroundings according to consumer demands by blending advanced technology and scientific laws.

REGIONAL ANALYSIS

Asia Pacific is expected to emerge as the largest consumer of LED lights and this trend is projected to continue during the forecast period. The regional market is dominated by China which is the largest LED light manufacturer for a long time and continues to be. The country’s economic growth is also supported by the lighting industry. It has transitioned itself towards the LED lighting. This has completely transformed the way the nation illuminates its towns, cities, houses and commercial buildings. Likewise, India is one the fastest growing economies and is quickly becoming the biggest consumer of these lights. Apart from this, various initiatives, schemes and even tax rebates were also announced which has reduced the cost of manufacturing LED lights in the country.

Europe is another marketplace with huge prospects for LED lights. It is shifting into the application of eco-friendly solutions in this field as well. In August 2023, the European Commission prohibited or banned fluorescent lighting items. This is a major step towards ecological sustainability. The verdict was passed as per the RoHS and ecodesign instructions to slowly phase out the T8 and T5 fluorescent tubes along with the compact fluorescent tubes (CFL) because of their environmentally dangerous mercury substance, large power consumption and significant amount of resources while producing. Besides this, it is also a key market for the decorative lights. People in the region use these lights to show and convey their personal style as well as set the mood.

North America's LED lighting market is witnessing major growth in this sector and is estimated to have a higher CAGR in the coming years. The public sector in the United States and Canada is seeing a rise in requests for LED and lighting solutions. In Canada, its adoption rate has spiked and is becoming popular swiftly in various applications. Also, it provides a tremendous opportunity for the country to attain power efficiency, lower the emission of harmful gases and improve durability and tenability. In America, according to the US Department of Energy, when compared to conventional incandescent lighting, the energy consumption by using LEDs with ENERGY STAR ratings is reduced by almost 75 percent.

Latin America is growing rapidly in the lighting industry and holds huge potential for the LED lighting market to expand in this region. The trend of solar-powered streetlights has already started to take place in Brazil, Argentina and some more nations. The countries in the region are heavily investing in solar-powered streetlights acknowledging the advantages of this sustainable lighting technology. For instance, over 22 thousand solar-powered streetlights were installed by the local governments in Bogota, Colombia. This has brought down the city’s carbon emission levels by beyond 4 thousand tons of CO2 annually.

The market in Middle East and Africa is anticipated to grow at a steady CAGR during the forecast period. The climate change and other problems in the region like the Red Sea crisis and war have increased inflation and power prices which is driving the acceptance of LED lights.

KEY PLAYERS IN THE GLOBAL LED LIGHTING MARKET

Phillips Lighting Holding B.V., General Electric Company, OSRAM Licht AG, Cree, Inc., Cooper Industries, Inc., Virtual Extension, Dialight plc, Zumtobel Group AG, Samsung and Sharp Corporation are some of the promising players in the global LED lighting market.

RECENT HAPPENINGS IN THE MARKET

  • In October 2023, Halonix Technologies press released the introduction of India's first 'UP-DOWN GLOW' LED Bulb. The dome and the stem glow in various colours, allowing the customers several choices for different occasions. Also, it has three separate switch enabled modes.
  • In September 2023, ams OSRAM announced the development of its ALIYOS LED-on-foil technology. This will offer the next set of opportunities for automotive lighting with design freedom and creativity. This ALIYOS technology allows car manufacturers to show brand personality with the help of interior and exterior lighting in earlier unachievable methods.

DETAILED SEGMENTATION OF THE GLOBAL LED LIGHTING MARKET INCLUDED IN THIS REPORT

This research report on the LED lighting market has been segmented and sub-segmented based on product type, installation type, end-user and region.

By Product Type

  • Luminaires
  • Lamps

By Installation Type

  • Retrofit Installation
  • New Installation

By End-User

  • Outdoor Lighting
  • Indoor Lighting

By Region

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

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Frequently Asked Questions

1. What are the primary elements that are propelling the LED Lighting Market forward?

The LED Lighting Market is predicted to develop in response to rising consumer demand for energy-efficient lighting systems, lower LED pricing, and a high penetration of LEDs as a light source.

2. What market segments does the LED Lighting Market cover?

The market for LED lighting is divided into four categories: product type, installation type, end-user, and geography.

3. Who are the major participants in the LED lighting industry?

Signify Holding, Cree, Inc. (IDEAL INDUSTRIES INC.), Digital Lumens Inc., Acuity Brands, Dialight, Zumtobel Group Ag, Hubbell, LumiGrow, LSI Industries Inc., and Panasonic Corporation are among the leading companies in the LED lighting market.

4. What is the LED Lighting Market's expected growth rate?

During this forecast period, it is anticipated to grow at a healthy CAGR of 8.5% from 2024 to 2029.

5. What is the size of the LED Lighting Market expected to be in the future?

The global LED lighting market will be worth USD 78.9 billion in 2024. It is expected to grow at a CAGR of 8.5% during the forecast period and reach a value of USD 118.4 billion by 2029.

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