LED Lighting Market Size

Global LED Lighting Market Overview:

LED Lighting Market Size was valued at USD 71.59 billion in 2023. The LED lighting market industry is projected to grow from USD 79.61 Billion in 2024 to USD 186.12 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.20% during the forecast period (2024 - 2032). Benefits of LED lights, and rising adoption of alternative fuel cell vehicles are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

LED Lighting Market Trends

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  Supportive Government Initiatives are anticipated to boost the market growth

  
  

Through different laws, the government has encouraged investments in energy-efficient lighting technology, which has expanded the use of LED lights in a variety of industrial, commercial, and residential sectors. Furthermore, lighting uses between 18 to 40 percent of the electricity used in business buildings, compared to just 10% in houses. The market is expanding due to the rising demand for energy conservation. The switch to energy-efficient lighting is anticipated to decrease the world's need for electricity for lighting by 30 to 40% by 2030.

Moreover, LED lighting is being adopted widely in nations all around the world. For instance, New York intended to switch to LEDs for 250,000 of its streetlights, which was to be followed by the switchover of metropolitan areas' decorative lighting. Additionally, Barcelona (Spain) installed approximately 3,000 LED-based smart streetlights that collect data on noise, humidity, pollution, and other environmental factors.

Additionally, the US Department of Energy (DOE) predicted that LED is a highly energy-efficient lighting technology and has the potential to radically alter how Americans would light their homes in the future. Energy savings in the United States could be significantly impacted by the widespread usage of LED lighting. Therefore, most lighting projects are anticipated to adopt LED technology has enhanced the LED lighting market CAGR across the globe in the recent years

However, the popularity of LEDs is rising as a result of rising consumer concern about the environment, the robustness of these lights, and government regulations for energy efficiency. For instance, the Chennai Airport purchased six sets of LED base lights for disaster assistance as part of its green measures to make its lighting and fixtures more energy-efficient is another factor driving the growth of the LED lighting market revenue.

LED Lighting Market Segment Insights:

LED Lighting Installation Type Insights

The LED lighting market segmentation, based on installation type, includes new installation and retrofit. The new installation of LED lighting segment held the majority share in 2021 contribution to around ~60-65% in respect to the LED lighting market revenue. This is primarily owing to the growing demand for energy efficient and easy to install lighting systems in new construction sites. For instance, in August 2022, to install LED lights in these locations, Cochin Smart Mission Limited (CSML) has prepared a project of 40 crore rupees. According to officials, CSML will soon release a tender for the installation of 40,000 LED street lights in these locations to protect the safety of both pedestrians and drivers.

LED Lighting Product Type Insights

The LED lighting market segmentation, based on product type, includes lamps and luminaries. The luminaries segment dominated the market in 2021 and lamps is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the LED lights are utilized only in track lighting, high bays, troffers, and street lighting fixtures. The installation of additional track lights and light poles as a result of the growing commercial building space and evolving smart city initiatives is the main factor driving the segment's growth. Hence, rising utilization of LED lights for the development of the cities are anticipated to positively impacts the market growth.

July 2022: In India, Realme India unveiled Realme Smart LED lights. The product has an input voltage range of AC 120–250V and a rated power rating of 9W. The Realme Link app, Google Home, or Amazon Alexa can be used to control the lights. This development has further broadened the growth opportunity for the LED lighting industry.

LED Lighting End-Use Application Insights

The LED lighting market data has been bifurcated by end-use application into indoor lighting and outdoor lighting. The indoor lighting segment dominated the market in 2021 and outdoor lighting segment is projected to be the faster-growing segment during the forecast period, 2022-2030. The growth in demand for high-intensity discharge and fluorescent bulb replacements from supermarkets, shopping centres, and retail establishments is the cause of this. Compared to other lighting solutions, LED lighting produces less heat and is more affordable. Additionally, it is anticipated that growing demand from public institutions like hospitals and schools will support the segment's growth.

June 2022: A new business unit combining commercial lighting and seating solutions has been established, according to Wipro Lighting. It seeks to provide more comprehensive solutions and greater value to its B2B (business-to-business) clients.

Figure 2: LED Lighting Market, by End-Use Application, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Additionally, during the anticipated term, a slight expansion of the outdoor market is anticipated. This is due to the expansion of infrastructure-related projects, such as motorways, airports, and public spaces. Due to expanding government attempts to achieve net-zero emissions by reducing energy use, the market for LED lighting for outdoor applications is also anticipated to develop.

LED Lighting Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia-Pacific LED Lighting market accounted for USD 25.18 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing construction activities and investment on the smart city projects across the region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: LED LIGHTING MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe LED lighting market accounts for the second-largest market share due to the availability of LED manufacturers, government backing for the growth of the smart infrastructure, and growing construction activities. Further, the Germany LED lighting market held the largest market share, and the UK LED lighting market was the fastest growing market in the European region

The North America LED Lighting Market is expected to grow at the significant CAGR from 2022 to 2030. This is due to presence of many market players and growing use of LED lights by individuals. Moreover, United States LED lighting market held the largest market share, and the Canada LED lighting market was the fastest growing market in the North American region.

LED Lighting Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the LED lighting market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the LED lighting industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the LED lighting industry to benefit environment and expand the market sector is to manufacture locally to reduce operating costs. In recent years, LED lighting industry has provided LEDs with some of the most significant benefits. The LED lighting market major player such as Phillips Lighting Holding B.V. (Netherlands), GE Lighting (US), Samsung Electronics (South Korea), Sharp Corporation (Japan), Eaton Corporation (Ireland)), and others are working to expand the market demand by investing in research and development activities.

Philips Lighting has revolutionized how lighting is used to improve the human experience in locations where people live and work. It is the leading provider of lighting solutions and apps for both professional and consumer markets. In order to modify settings, create experiences, and aid in defining identities, the firm develops lighting solutions that can be used at home, on the go, in the city, while shopping, at work, or in a classroom. For instance, in January 2023, the Philips Hue Sync TV app for Samsung TVs was announced by Signify. With the help of the new paid app, moviegoers and gamers can seamlessly sync everything they watch or play on TV, including native apps like Netflix and Disney+. Through this partnership, Samsung and Philips Hue are introducing fresh, cutting-edge, and immersive ways to watch TV, play video games, and enjoy movies.

Also, both business and residential lighting products are available from GE Lighting. The business provides light bulbs for a variety of uses, including general, decorative, track and recessed, fluorescent, outdoor, and automotive. As well as offering LED luminaires for office, retail, and commercial building spaces, it also offers home and security products like lanterns, touch lights, lighting fixtures, under-cabinet fixtures, and cords. For instance, in January 2023, at CES 2023, GE Lighting, a Savant company, will introduce a number of new products as part of the expansion of its Cync smart home ecosystem. Cync will be showcasing its full Dynamic Effects entertainment line-up, which includes 16 million colours, pre-set and personalised light shows, on-device music-syncing, and more, expanding its recent entry into the entertainment industry for the first time.

Key Companies in the LED lighting market includes

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  Phillips Lighting Holding B.V. (Netherlands)

  
  


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  GE Lighting (US)

  
  


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  Osram Licht AG (Germany)

  
  


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  Cree Inc. (US)

  
  


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  Cooper Lighting Solutions (US)

  
  


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  Virtual Extension Dialight PLC (UK)

  
  


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  Zumtobel Group (Austria)

  
  


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  Samsung Electronics (South Korea)

  
  


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  Sharp Corporation (Japan)

  
  


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  Eaton Corporation (Ireland), among others

  
  

LED Lighting Industry Developments

April 2023: Signify, a participant in the lighting industry, has increased the selection of Philips Smart WiFi products it offers by introducing a new WiZ-powered smart LED downlighter. The new light costs Rs 5099 and comes in two variations, a 12W and an 840 Lumens version. The lamp is available for purchase in all small- and large-format retail locations as well as on e-commerce websites. The lamp is intended for residential usage and has been developed to bring a quality appearance to any home. Its deeply recessed construction promises reduced glare and simple installation, and its simple trim design provides a brilliant and concentrated 36-degree light beam for the accent lighting.

March 2023: The brand-new LED track lights from Syska Group, a leader in LED light technology, have been introduced. These track lights are made with a design that produces a luminous & ambient illumination, making them perfect for creating a radiant mood in any space or nook. With the highest standards of both quality & creativity, Syska LED has proudly produced LED track lights in India. Syska LED's core purpose is to encourage the adoption of sustainable and ecologically friendly goods. As a leader in this industry, Syska LED has always catered to a variety of customer demands by offering a broad selection of LED lighting solutions that are energy-efficient. By making it all the more affordable and convenient with its most recent update, Syska LED is continuing to raise the level of living.

March 2023: The debut of the 2216 Dim to Warm LED Strip Light has been announced by Environmental Lights, a pioneer in LED lighting solutions. As the lights are lowered, the Dim-to-Warm Strip Light employs inbuilt technology to automatically raise the color temperature of the LEDs. Customers may use tunable white LED without specialized controllers or software thanks to it. For a more realistic dimmer feel, this effect imitates appearance of incandescent lights.

June 2022: The acquisition of Fluence by Signify from ams OSRAM was disclosed. The transaction would strengthen Signify's agriculture lighting growth platform and strengthen its position in the wealthy North American horticulture lighting market.

May 2022: The Syska LED Recessed SMD Downlight was unveiled by SYSKA LED (Glowslick-SSK-SLP). Because it may be utilised in homes, offices, showrooms, retail establishments, and shopping malls, this lighting solution is perfect for indoor applications.

February 2022: An American designer named Kelly Wearstler worked with Tech Lighting to create a brand-new line of lighting fixtures characterised by clean geometries and opulent materials. The exhibition is adaptable, minimal, and technologically cutting edge and is designed for usage both indoors and outdoors.

LED Lighting Market Segmentation:

LED Lighting Installation Type Outlook

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  New Installation

  
  


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  Retrofit

  
  

LED Lighting Product Type Outlook

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  Lamps

  
  


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  Luminaries

  
  

LED Lighting Distribution Channel Outlook

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  Store Based

  
  


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  Non-Store Based

  
  

LED Lighting End-Use Application Outlook

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  Indoor Lighting

  
  


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  Outdoor Lighting

  
  

LED Lighting Regional Outlook

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  North America

  
  

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    US

    
    
  
  
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    Canada

    
    
  
  
  
  

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  Europe

  
  

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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America