The global LED lighting market is expected to grow at a CAGR of around 13.5% from 2020 to 2027 and expected to reach the market value of around US$ 98.6 Bn by 2027.
One of today's most energy-efficient and rapidly developing lighting technologies is the light-emitting diode (LED). Quality LED light bulbs outlast other types of lighting, they are more durable, and provide comparable or better light quality. LED lighting technology is highly energy efficient and has the potential to fundamentally change the future of lighting in the United States. Residential LEDs, particularly ENERGY STAR products, use at least 75% less energy and last 25 times longer than incandescent lighting. In the United States, widespread use of LED lighting has the greatest potential impact on energy savings.
LEDs are highly efficient, dependable, and have a longer life span, which is expected to increase their use in both indoor and outdoor settings. When compared to incandescent lights, these lights are more cost-effective, providing around 50,000 hours of illumination with a small amount of energy consumed. Because of their lower operating costs and lower heat losses, they are a good replacement for incandescent lights. Product demand has also been boosted by technological advancements such as the transition from traditional to green lighting, improved energy efficiency standards, and lower prices. Furthermore, the increasing stringency of regulations regarding inefficient lighting technologies, as well as rising government efforts toward sustainable development, are key growth drivers. Strict regulatory policies governing conventional lighting and energy consumption in the United States, European Union, China, and Canada are expected to boost product demand in the coming years. Corresponding ratings and design standards categorizing energy efficiencies, as well as green construction standards in China, are expected to bode well for the growth of the light-emitting diode lighting market.
High adoption of solar LED lighting are expected to offer lucrative opportunities for the market growth of global LED lighting market
Emerging economies in Asia Pacific and Africa are adopting solar LEDs to provide electricity in remote areas, which is expected to present market participants with lucrative growth opportunities over the forecast period. For example, in September 2015, the Kenyan government announced a US$1.2 Bn project to install LED street lights in Mombasa, Kenya. However, some villages still lack proper electricity infrastructure, and there is a relatively high demand for LED lighting. These countries are concentrating on importing solar LED lighting systems at subsidized prices. The Ministry of New and Renewable Energy stopped lending central financial assistance to manufacturers of CFL-based solar lighting systems in December 2015, but this funding scheme is still available to manufacturers of LED-based solar lighting systems.
Strategic alliance coupled with e-commerce platform providers is a major trend
Manufacturers are focusing on digital marketing practices to expand their consumer base and generate revenue. Key market players are focusing on strategic alliances and partnerships with online retailers in order to provide architectural LED lighting products to consumers easily and affordably. For example, in July 2014, Phillips Lighting Limited formed a strategic alliance with Amazon, Inc. to strengthen its global market presence.
The global LED lighting market is segmented based on product, application, and end-user. By product, the market is bifurcated into lamps and luminaries. Lamps are further sub segmented as A-lamps, T-lamps, and others. Luminaries are further sub segmented as streetlights, downlights, toffers, and others. Based on application, the market is classified into indoor and outdoor. Further, end-user is segregated as commercial, residential, industrial, and others
LED luminaries are expected to have a dominant market share during the forecast period. Because luminaries are widely used in commercial and industrial segments, this is one of the key factors driving the global LED lighting market.
In terms of application, the indoor segment will account for the majority of market share in the coming years. Due to high product adoption as an alternative to fluorescent, High-Intensity Discharge (HID), and incandescent lamps, the segment is expected to maintain its dominant position throughout the forecast period. LED lighting is increasingly being used in offices, retail stores and malls, hospitals, and educational buildings.
According to end-user, the commercial segment is expected to maintain its dominant position throughout the forecast period. The commercial segment is being driven by high demand for LED troffers and downlights. Gallery, museum, and other exhibition lighting applications that primarily use reflectors, projectors, and downlights are examples of high-end lighting for commercial end-use.
Asia Pacific is expected to have a dominant market share in the global LED lighting market in the coming years. Taiwan, Japan, and China are the major contributors to regional market growth, owing to government initiatives to adopt light-emitting diodes, as well as the presence of a large number of market players. China, Indonesia, India, Vietnam, and Malaysia, the region's fastest-developing countries, have a thriving construction industry as a result of an increasing local and migrant population and changing lifestyles. As a result, APAC's rapidly growing construction sector is also contributing to regional product demand.
North America, on the other hand, is expected to have the second largest market share in the global LED lighting market. A strong dollar policy is likely to assist the United States in becoming a significant growth driver for overall product demand. The country has also been a strong supporter of light-emitting diode lighting, announcing new policies and guidelines for the use of LED technology, investing in R&D of energy-efficient lighting solutions, expanding use in commercial, industrial, and residential applications, and participating in public-private partnerships to boost local markets. This factor is expected to boost the growth of the North American regional market during the forecast period.
Europe is expected to be the world's third largest regional market for LED lighting. Europe's people have a relatively high standard of living. Furthermore, the people in this region have the financial means to invest in smart homes equipped with a variety of innovative LED lights. These factors contribute to the expansion of the global LED lighting market.
The prominent players of the global LED lighting market involve Acuity Brands Lighting Inc., Cree Lighting (IDEAL INDUSTRIES INC.), Dialight plc, Digital Lumens Inc., Hubbell Incorporated, LSI Industries Inc., LumiGrow, and among others
Market By Product
Market By Application
Market By End-use
LED lighting market is expected to reach a market value of around US$ 98.6 Bn by 2027.
The LED lighting market is expected to grow at a CAGR of around 13.5% from 2020 to 2027.
Based on product, luminaires segment is the leading segment in the overall market.
LEDs are highly efficient, reliable, and they yield a longer life span, which is anticipated to boost their application in both indoor and outdoor settings is one of the prominent factors that drive the demand for LED lighting market.
Acuity Brands Lighting Inc., Cree Lighting (IDEAL INDUSTRIES INC.), Dialight plc, Digital Lumens Inc., Hubbell Incorporated, LSI Industries Inc., LumiGrow, and among others.
Asia Pacific is anticipated to grab the highest market share in the regional market
North America is expected to be the fastest growing market in the forthcoming years