The COVID-19 or Coronavirus pandemic is the worst healthcare disaster that happened to humankind in the last century, started from Wuhan in China, the virus engulfed large populations around the world in a span of few months resulting in the death of millions of people. Global leading economies including China, the United States, Europe, Japan, India all went into stringent lockdown for months to control the spread of this deadly virus. This sudden lockdown resulted in a huge economic impact on almost all the industries. The demands have fallen by almost half to zero in some cases. be it automotive, chemical, material, technology, electronics all the industries were worst hit by the pandemic. the Global LED lighting market is no exception to the list. The following are key COVID19 impacts on the global LED lighting market share in 2020.
Importance of lighting in the industrial & commercial lighting
LED lighting has huge demand from the commercial & industrial sectors, as lighting is one of the most crucial parts of industrial safety as directed in most of the major governments. There are certain standards set by the government for lighting such as minimum wattage, brightness level, voltage, color, flickering level, etc.
Many major players are focused only on manufacturing lighting for industrial & commercial LED lighting market. Lockdown has caused operational closure of many manufacturing facilities, offices, storages, etc. thus, the demand for lighting has decreased significantly.
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COVID19 Impact on LED lighting manufacturing
The LED lighting manufacturing plants in China & Europe were most affected by the COVID19 pandemic. Lockdown resulted in a significant decrease in the availability of raw materials, a lack of skilled laborers, and closure of manufacturing facilities for a prolonged period. All this resulted in an increase in company expenses & lowered revenue. The drop in demand caused in the piling of stocks with no moment.
COVID19 Impact on LED lighting demand and supply
Due to lockdown, the construction, renovation & moment of residential, commercial & industrial infrastructure has stopped resulting in a sudden drop in demand for LED lamps. E-commerce is one of the largest platforms for selling LED lamps, the lockdown has resulted in a halt in supply & logistics which has decreased the demand notably. International logistics is running at less than 50% of its capacity sue to lowered exports & imports.
Key developments in the LED lighting industry
- The LED lighting market is anticipated to reach a market size of USD 144.5 billion by 2030 to grow at a CAGR of 11.5% between 2025-2030.
- Lamp segment is the largest segment followed by luminaires. Lamps are replaceable, affordable & easy to use, thus their demand is growing exponentially.
- The indoor lighting segment accounts for the largest LED lighting market size in 2020.
- The Asia Pacific is expected to emerge as the largest market for LED lighting, owing to huge market demand, manufacturing facilities, and availability of labour.
- Key players in this market include Philips Lighting (Signify), Cree Inc., Osram Gmbh, Digital Lumens, and Zumtobel Group AG. These companies accounted for about 50% LED lighting market share in 2020.