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LED Lighting Market Overview
The market for LED Lighting Market size is forecast to reach $121.4 billion by 2026, growing at a CAGR of 12.25% from 2021 to 2026. The LED Lighting Market is estimated to witness substantial growth over the forecast period primarily due to increase in the adoption of energy efficient lighting and government regulations on smart city projects and the construction sector. A light-emitting diode is a semiconductor device that emits visible light when an electrical current passes through it. LEDs are composed of two types of semiconducting material that will be doped so as to slightly alter their electrical properties for their pure, unaltered or intrinsic form. The growing consumer demand for energy-efficient lighting systems, reduction in costs of LEDs, high penetration of LEDs as a light source in the market is driving market growth.
Report Coverage
The report: “LED Lighting Market– Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the LED Lighting Market.
By Type – LED Lamps, LED Luminaire
By Application – Indoor, Outdoor
By End Use Industry – Residential, Office, Retail/Shop, Hospitality, Industrial, Transporation and Others
By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands and Others), APAC(China, Japan India, SK, Australia, Indonesia and Others), South America(Brazil, Argentina, Chile, Colombia and others), and RoW (Middle East and Africa).
Key Takeaways
- LED Lighting Market is estimated to witness substantial growth over the forecast period primarily due to growing consumer demand for energy-efficient lighting systems, reduction in costs of LEDs.
- The LED Lighting consumes less electricity and also much cooler than incandescent lights and reduces the risk of combustion or burnt fingers.
- The applications of LED lighting are residential, industrial, outdoor and indoor.
- Asia-Pacific is projected to hold the largest share of LED Lighting Market during the forecast period due to the presence of large number of companies in Taiwan, Japan and China as they are the key contributors to the Asia-pacific market growth
LED Lighting Market Share, By Geography, 2020 (%)
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LED Lighting Market Segment Analysis – By Type
The market segment by type is classified into into LED Lamp and LED Fixture. LED luminaire segment is expected to grow at a higher CAGR of 16.5% during the forecast period 2021-2026. It is due to luminaires that are widely used in commercial and industrial applications. They are easier to control and permit optic designers to use them more proficiently and use less light to illuminate the same area. LED luminaires are complete LED units with an LED bulb and driver built into them. Luminaires can be easily retrofitted into lighting fixtures for halogen bulbs. They are often used in corridors, foyers, car parks, hotels, offices, garages, workshops and factories.
LED Lighting Market Segment Analysis – By Application
The market segment by application is categorized into indoor and outdoor. The indoor segment is the leading segment of all the segments in terms of revenue. It is due to high product adoption as an alternative to incandescent lamps, high-density discharge, and fluorescent. They are used widely in offices, retail stores, malls, hospitals and more. The product demand in outdoor applications can be profoundly affected by government initiatives. Outdoor applications include airports, industrial, government, highways and roadways such as signage and traffic signals.
LED Lighting Market Segment Analysis – By Geography
LED Lighting market by geography has been segmented into North America, Europe, APAC, South America and RoW. Asia Pacific is expected to dominate the LED Lighting Market with share of 60% in 2020 due to presence of large number of companies in Taiwan, Japan and China as they are the key contributors to the Asia-pacific market growth owing to the initiatives undertaken by the respective governments for adopting LED lights. The fastest developing countries in the region such as China, India, Vietnam and Malaysia have been rapidly growing construction sector which demands LED products in the regional market. These factors are contributing to the market growth of Asia-Pacific.
LED Lighting Market Drivers
Increasing adoption of energy efficient lighting solutions
LED Lighting is witnessing a rise in demand due to heavy adoption of LED bulbs for indoor and outdoor applications. LED lights use so much less electricity than incandescent lighting which wastes about 90% of electricity they consume as heat that is making them incredibly inefficient light producers. LED has the ability to directly convert electrical energy in to light energy with less power consumption and higher reliability. LED is efficient as it is extremely small and compact in size with prolonged durability. LED’s doesn’t use filament and creates little heat instead it relies on property of semiconductors to generate light. Such factors driving the LED market growth.
Increase in adoption of smart lighting
Smart lighting is one of the major factors to impact the LED lighting market as it provides momentum in the process of building smart cities. Smart lighting is an opportunity for commercial LED lighting market. The governments' of various economies have been playing an important role in smart cities market through their regulations and initiatives focused on the deployment of latest smart devices as part of their infrastructure. Smart energy projects, e-governance solutions, the spread of the construction sector across widely smart cities and the need for a better quality of life is expected to increase the growth of LED lighting market.
LED Lighting Market Challenges
High product cost
LEDs unlike conventional light sources such as incandescent bulbs cannot effectively cool themselves. It needs additional heat sinking or cooling means that are needed to prevent overheating. While high thermal conductivity materials are often used to propagate the heat out over a substantial area, these high thermal conductivity materials come with the addition of significant weight and cost. This raises the cost of not only the light sources as a result of shipping costs and materials costs but also the fixtures which use those light sources. This further increases the overall cost of the LED. Such factors hamper the market growth.
LED Lighting Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the LED Lighting Market. The LED Lighting top ten companies include:
- Acuity Brands Lighting Inc.
- Cree Lighting
- Dialight
- Digital Lumens Inc.
- Hubbell
- LSI Industries Inc.
- LumiGrow
- Panasonic Corporation
- Siteco GmbH
- Signify Holding
Acquisitions/Technology Launches/Partnerships
- In June 2021, Syska has launched two new LED lighting products the T5 LED batten-SSK-SQ2201 polycarbonate and T5 LED Batten aluminium SSK-SQ2201. These lights are especially useful for professionals working from home by countering dim lighting. These lights have surge protection of 4KV and installed with 440V over voltage protection.
- In Feb 2021, Orient Electric launched the emergency LED light solutions which provide backup lighting for up to 4 hours during a power outage. The range includes LED bulbs, LED batten, LED recess panel and bulkhead.
Related Reports
Report Code: ESR 24774
Report Code: AD 0020
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