Authored By: Sarah
11 Jul 2024

 LED Lighting Market Size to grow by USD 34.82 billion between 2023-2027

According to a research report “ LED Lighting Market” by Application (Residential, Commercial, Outdoor, Industrial, Others) Product (Luminaries, Lamps) Geography (APAC, Europe, North America, Middle East and Africa, South America)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 34.82 billion, at a CAGR of  7.35% during the forecast period. The manufacturing cost of LED lighting has experienced a significant decrease over the past decade and is projected to continue this trend during the forecast period. This cost reduction can primarily be attributed to the declining average selling prices (ASPs) of chips and components utilized in the fabrication of LED devices. The decrease in LED manufacturing costs is further driving down the initial installation expenses of LED lamps and fixtures, thereby stimulating the adoption of new LED solutions across various application sectors. This cost reduction is largely due to government incentives for the procurement of semiconductor equipment, such as metal-organic chemical vapor deposition (MOCVD) systems, which are essential for LED manufacturing.

Browse market data tables, figures, and in-depth TOC on “LED Lighting Market” by Application (Residential, Commercial, Outdoor, Industrial, Others) Product (Luminaries, Lamps) Geography (APAC, Europe, North America, Middle East and Africa, South America) Global Forecast to 2027. Download Free Sample

 

By Application, the Residential segment is projected to dominate the market size in 2024

In the lighting industry, LED luminaires have emerged as a preferred solution due to their extended lifespan, improved energy efficiency, and reduced maintenance costs. These advantages have led to their widespread adoption in various applications, including exit lights, floodlights, and high-bay and low-bay lighting. Traditional luminaires, such as those utilizing incandescent, fluorescent, and high-intensity discharge (HID) technologies, present several challenges. These challenges include the need for frequent lamp replacements due to frequent switching, the requirement for external ballasts, and the toxic nature of some luminaires due to mercury content. Original Equipment Manufacturers (OEMs) are addressing these challenges by transitioning to LED luminaires, which offer a higher return on investment (ROI) and superior performance. This shift is driving the growth of the global LED lighting market during the forecast period.

By Product, Luminaries  segment is expected to hold the largest market size for the year 2024

The residential segment led the global LED lighting market in 2022, driven by the surge in urbanization and the demand for energy-efficient solutions. The increasing urban population fuels market growth, as consumers prioritize trendy and personalized LED lighting systems for home decoration. Furthermore, governments worldwide offer incentives, such as the Indian commerce and industry ministry's USD380 million PLI scheme, to stimulate local manufacturing and promote the adoption of energy-efficient LED lighting over traditional alternatives.

APAC is forecasted to hold the largest market size by region in 2024

The LED lighting market in the Asia Pacific (APAC) region is experiencing robust growth, driven by the surging demand for energy-efficient lighting solutions from both residential and commercial sectors. The region's emergence as a global hub for retail, hospitality, and healthcare industries, with numerous multinational corporations establishing their presence, further bolsters market expansion. China, a key contributor to the regional market, benefits from the presence of a substantial number of LED manufacturing units and industries. Additionally, China's ongoing development of over 450 smart city projects will significantly fuel the growth of the APAC LED lighting market during the forecast period.

The LED Lighting Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Acuity Brands Inc.
  • ams OSRAM AG
  • Bridgelux Inc.
  • Dialight Plc
  • Digital Lumens Inc.
  • Eaton Corp. Plc
  • Ennostar Inc.
  • General Electric Co.
  • GrowRay Lighting Technologies
  • Hubbell Inc.
  • IDEAL INDUSTRIES Inc.
  • Koninklijke Philips NV
  • LSI Industries Inc
  • Lumileds Holding BV
  • OSRAM GmbH
  • Panasonic Holdings Corp.
  • Sharp Corp.
  • Signify NV
  • SMART Global Holdings Inc.
  • Toyoda Gosei Co. Ltd.
.

For insights on company offerings- Request a sample report!

Research Analysis Overview

The LED lighting market has experienced significant growth in recent years due to its energy efficiency and versatility in both indoor and outdoor situations. LED lights provide strong illumination with a fraction of the energy input compared to traditional lighting sources like incandescent and halogen bulbs. CFL bulbs have also been surpassed by LED technology in terms of energy efficiency and longevity. LED products come in various forms such as LED bulbs, LED tube lights, LED strips, and LED panel lights. Indoor applications include residential lighting, retail lighting, and office spaces. Outdoor applications include streetlights, billboards, and signage. LED technology offers environmental sustainability through reduced energy consumption and longer lifespan. Daylighting and occupancy sensors are also integrated with LED products to further save energy. Wi-Fi connectivity is also a feature offered by some LED manufacturers to enable remote control and monitoring. LED lighting is ideal for strong illumination in indoor situations while maintaining energy efficiency. Its versatility extends to outdoor applications, making it a preferred choice for both residential and commercial lighting needs. With advancements in technology, LED products continue to offer cost savings and environmental benefits over traditional lighting sources.

Market Research Overview

The LED lighting market is experiencing significant growth due to the increasing adoption of smart lighting solutions in various sectors. The automotive sector is embracing LED technology for cabin lights and headlights, while architectural LED lamps are becoming popular in residential and commercial buildings. The office lighting segment is also witnessing a shift towards LED lighting systems, with LED lamp categories such as troffers, high bays, track lighting, and LED luminaires gaining popularity. Gallery owners, museums, and exhibition spaces are turning to LED lighting for energy savings and longer lifespan, making it an ideal energy input solution for public areas like airports, highways, and public institutions. Fluorescent bulb substitutes and high intensity discharge (HID) alternatives are also being replaced with LED lighting systems. The residential market is also adopting LED lighting, with LED floor lamps and LED lamp bulbs becoming popular choices. The medical device sector is using LED lighting for endoscopy, phototherapy, and surgical illumination, providing energy saving solutions for medical workers. LED manufacturers are continuously innovating with smart LED lighting, offering network connectivity, Light Fidelity, and occupancy sensors. LED products such as LED tubes, bulbs, strips, and LED lighting portfolio are being used in indoor and outdoor situations, replacing inefficient lighting systems like halogen lights, CFL, and incandescent. The market is also witnessing the adoption of LED technology in horticulture, retail lighting, residential lighting, and indoor applications. Smart city initiatives and building automation systems are using common open standards to promote environmental sustainability and energy efficiency. LED technology is the future of lighting, offering strong illumination and energy savings while ensuring consumer safety and product certification.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

Read News Read Less
Interested in this report?
Get your sample now!
Technavio