Solid-State & Other Energy-Efficient Lighting Market - Forecast(2024 - 2030)

Solid-State & Other Energy-Efficient Lighting Market Overview

The global solid-state & other energy-efficient lighting market size is forecast to reach US$ 220 billion by 2027, growing at a CAGR of 5.1 % from 2022 to 2027. Solid-state lighting (SSL) is a technology in which v(LEDs) or compact fluorescent lamps (CFL) replace conventional incandescent and fluorescent lamps for general lighting purposes. The light emitting diodes are semiconductor diodes which release light when current flows through it. They use material such as gallium nitride, aluminum nitride, silicon carbide and others which have band gap for the electrons to flow and release light. The driving factors for the growth of the market include rising concern for environment and need for conserving energy, increasing government regulations as well as initiatives to promote energy efficient lighting and . The difficulty in working of solid-state lighting under heating conditions, lack of control compatibility and high initial costs for solid state and other energy efficient lighting are the restraining factors for the progress of the market.

Solid-State & Other Energy-Efficient Lighting Market Report Coverage

The report: “Solid-State & Other Energy-efficient Lighting Industry Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Solid-State & Other Energy-efficient Lighting industry.

Key Takeaways

Solid-State & Other Energy-Efficient Lighting Market Segment Analysis- By Technology

The Solid-state & Other Energy-efficient Lighting market by application has been segmented into Light-emitting diodes (LED), Plasma and Induction Lighting, High Intensity Discharge Lighting, Halogen Incandescent Lights, Compact Fluorescent Lamps (CFL), others. The Light emitting diode (LED) segment held the largest share of 60%, in 2021.Light emitting diodes (LEDs) lasts longer, is more durable, performs better and is more energy-efficient than any other source of lighting with wide range of applications. These light emitting diodes are used in Picture phones and digital watches, calculators, camera flashes, aviation lighting, digital computer, microprocessors, traffic signals, street lights and many other such devices. Residential LEDs sub-segment fuels the growth of general lighting segment due to growing public awareness and government initiatives. Especially ENERGY STAR rated products claimed to use at least 75% less energy, and last up to 25 times longer, than incandescent lighting. In January 2021, as per the paper published in Intech Open journal, the study claimed that LED lights use 40–80% less electricity and have at least 5 times the life expectancy than regular High-Pressure Sodium (HPS) fixtures. LED lamps are 7 times more energy efficient than incandescent and twice as efficient as fluorescent lamps. Thus, numerous benefits of light emitting diode lighting is majorly driving the growth of this market. 

Solid-State & Other Energy-Efficient Lighting Market Segment Analysis- By Application

The Solid-state & Other Energy-efficient Lighting market by end user has been segmented into general lighting, backlighting, automotive lights, medical lighting, indoor plant cultivation, others. Thegeneral lighting segment held the largest share of 45%, in 2021. There has been a rising demand for energy-efficient lighting systems in residential and commercial buildings due to the growing focus on reducing energy and electricity consumption, and increasing demand for high-quality and aesthetic interior lighting among consumers. This general lighting is broadly classified as residential, commercial and industrial application. These general lighting are used in illuminating floor areas, walls, roofs and decorative lighting in residential building. The commercial lighting used in offices, shops, malls, restaurants and others are utilized for ceiling fixtures or overhead ones, like track lights, recessed pot lights, chandeliers or ceiling lamps. The general lighting in industrial areas include factories, warehouses, focus lights, emergency lights and many others. In 2020, According to the estimates of Global Lighting Challenge (GCL) by ChallengeGlobalLigh, in the residential sector, lighting consumes substantial energy at global level, of 15%. Hence, switching to energy efficient solutions in such a large segment of residential general lighting is predicted to drive the growth of this market further. 

Solid-State & Other Energy-Efficient Lighting Market Segment Analysis- By Geography

The solid-state & other energy-efficient lighting market by geography is segmented into North America, Europe, Asia-Pacific (APAC), South America, and the rest of the world (RoW). APAC held the second largest solid-state & other energy-efficient lighting market share of 25%, in 2021 and is predicted to be the fastest growing market over the forecast period 2022-2027. The contributing factors include increasing technological research, government initiatives and awareness programs and the rising concerns for energy shortage in many developing countries along with the ever-growing consumption of electricity. In January 2022, as per paper published in ScienceDirect journal, it is estimated that the rise in global energy consumption is growing annually by 3.4%. It has also been observed that Asia has seen one of the highest increase in energy consumption than other In October 2021, as per the United Nations document, the Japanese government will use use international offsets as part of a plan to cut emissions 46% between 2013 and 2030. The efforts to reduce the emissions include funding carbon-cutting projects, rooftop solar power projects and use of soli-state and other energy-efficient lighting.. Thus, such contributions of governments in various Asian countries to conserve energy is leading the growth of solid state and other energy-efficient lighting in APAC market. 

Solid-State & Other Energy-Efficient Lighting Market Drivers

The governments of many countries are sponsoring various schemes to promote the use of solid state and other energy efficient lighting which accelerates the growth of the market.

The need for energy conservation due to its non-renewable sources has forced all the governments in the world to adopt solid-state & other energy-efficient lightings as one of the solutions. Hence, to promote the use of energy efficient lighting to save significant amount of energy is tackled with the help of financial aids, regulatory standards and various initiatives. For instance, the Department of Energy initiated a Solid-State Lighting Program that fosters United States scientific capabilities and leverages private funds. According to Department of Energy (DoE) projections, if it achieves the set objectives, advanced lighting systems are expected to save 6.9 trillion kWh of electricity by 2035.In China, as per the Lawrence Berkley National Laboratory report, the China Green Lights Program (CGLP) has been very successful in raising the awareness of available energy efficient lighting technologies, and has significantly contributed to the substantial increase in the production and use of these efficient lighting technologies. Such initiatives by government expedite the transition to switch to solid-state & other energy-efficient lighting in commercial and residential spaces. In India, UJALA scheme aims to promote efficient use of energy at the residential level, in order to reduce the high initial costs the government provided subsidized LED lights for residential users. There are many other initiatives such as Street Light National Programme, Bachat Lamp Yojana to promote the use of energy efficient lights. Thus, both developed and developing countries are making efforts to promote green and clean solutions for lighting system which acts as a driver for solid-state & other energy-efficient lighting market.

The increasing public awareness about energy conservation using solid-state & other energy-efficient lighting technologies is driving the market.

Most of the energy resources are exhaustible and some of them are also polluting. Solid-state and energy-efficient lighting is one of the energy efficient solutions which help reduce the harmful emissions in environment to some extent. Through growing social media and access to internet, public is growing aware of the ways to conserve energy and adopt green technologies. Solid-state & other energy-efficient lighting using light emitting diodes (LED) requires 80% less energy and also has reduced ill effects on the environment. Use of a simple incandescent bulb results in 4,500 pounds of CO2 annually, while light emitting diode bulbs contribute only 451 pounds of CO2 per year. Replacing a single incandescent bulb with a compact fluorescent light will keep a half-ton of CO2 out of the atmosphere over the life of the bulb. It is also estimated that, if the entire United States used energy-efficient lighting, it could retire 90 average size power plants and saves electricity as well as reduces CO2 and other harmful emission. As mentioned above, many studies and researches have proved that use of solid-state & other energy-efficient lighting is energy efficient and environment friendly. In April 2022, in United Kingdom, the Biden administration announced that manufacturers will have 75 days to phase out production of incandescent lights before the bulbs are banned in July 2023.Thus, growing awareness about power consumption and environmentally friendly solutions has surged the demand for energy efficient lights and drives the solid state and other energy-efficient lighting market 

Solid-State & Other Energy-Efficient Lighting Market Challenges

The functioning difficulty in solid state lighting under heat sensitive applications restricts the growth of the Solid-state & Other Energy-Efficient Lighting market

In case of solid-state lightings, there is heat management challenge to tackle as it persists only under certain conditions in surrounding. For solid state lightings, mounting details can result into heat management complexity. As operating temperatures increase, life and light output decrease. For instance, operating temperatures can rise if solid state lighting luminaries are mounted in a confined space, adjacent to insulation, in high temperature environments, or where the heat otherwise cannot be dissipated. An example would be a recessed downlight adjacent to insulation in a non-conditioned area. Another example would be one in which MR16 lamps are installed in open air luminaries where the only heat sink is the socket connection. In January 2022, as per the paper published in Springer Journal, there has been ongoing research for solid state lighting materials to resolve the heat dissipation issues. This major challenge, especially with nitride LEDs is due to a phenomenon, where there is an efficiency loss at high current when brighter LEDs are needed. The advancement in materials for solid state lighting could increase luminous efficacy of LED lighting by solving the infamous heat dissipation problems, which could save US$50 Bn annually, and about a 5% reduction in the energy budget of the United States.Thus, increasing efforts are made to resolve the constraint of heating issues which is restricting growth of this market. 

Solid-State & Other Energy-Efficient Lighting Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Solid-state & Other Energy-efficient Lighting industry. The Solid-state & Other Energy-efficient Lighting top 10 companies include:

1. Applied Materials Inc.
2. Phillips Lighting Holding B.V.
3. General Electric Company
4. Hong Kong Applied Science and Technology Research Institute Co. Ltd.
5. Nichia Corporation
6. OSRAM Licht AG
7. Seoul Semiconductor Co Ltd.
8. Signify Holding B.V.
9. Dialight PLC.
10. Bridgelux Inc.

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