LED Lighting Market Size, Share & Trends Analysis Report 2020-2027
The global LED lighting market size is estimated at USD 56.15 billion in 2018. It is anticipated to reach USD 144.5 billion by 2027 as per the new research report published by UpGraph market research. Growing investments in the construction of smart cities & smart homes and the Increasing adoption of LED in general lighting applications is anticipated to boost the market growth over the forecast period.
The market is segmented by end-user type into residential, industrial & commercial LED lighting market. The demand for specialized lighting such as high bay lights, area lights is growing from industrial customers. As lighting compliance in various industries has been changed by the government to promote energy savings. Similarly, the growing retail sector in developing countries has progressed the demand for commercial infrastructure, which is leading to increasing demand for LED lights.
Moreover, the residential sector is growing at a moderate pace, owing to a slow down in residential construction in developed countries. However, the government subsidy & loyalty programs are continuing to boost the LED lamps market, especially in the European region.
By Application type, the market can be segmented into indoor and outdoor. The demand from the outdoor lighting industry is growing exponentially for the last five years as the Per unit cost of outdoor lightings, such as street lights high-bay lighting, has decreased significantly. The demand from the indoor lighting segment is expected to remain stable within the next eight years. However, specialized lights such as troffers, downlights can expect growth in demand, especially from developing countries such as China, Brazil, India, and Indonesia.
The LED lighting industry can be bifurcated based on the type of lighting into, the LED lamp, and LED luminaires. As per the research, the LED lamps accounted for the largest led lighting market share of greater than 55% in 2019. The growth in residential construction in developing countries is fostering segment growth in developing countries such as India, China, and Brazil.
The A-type LED lamps are widely used for residential applications as these lamps are long-lasting, easy to replace, and durable. The T-type LED is used mostly in residential as well as commercial applications, as they offer greater flexibility, brightness, and a low payback period. The U.S Environment Protection Agency (EPA) has forecasted that the adoption of LED lamps may increase substantially in upcoming years if promoted well by manufacturers & other related stakeholders.
The luminaires segment involves streetlights, troffers, downlights, and other decorative lighting types. The segment growth is majorly driven by substantial growth in demand for the commercial and industrial lighting market. As per the study, the U.S. industrial & commercial construction market may grow by up to 3% between 2020 to 2021, which is expected to create a huge demand for all types of lighting products. Industrial lightings must meet certain compliances as per the government regulations as lighting plays a very crucial role in industrial safety.
The market has been segmented based on application areas into the indoor and outdoor LED lighting market. The Indoor LED lighting market is anticipated to account for the largest market share in 2019 owing to the increasing adoption of LED lights in the residential lighting segment. Moreover, the introduction of modern LED lighting products such as decorative lighting, connected lighting, dimmable & color-changing LED lights has notably increased the adoption of LED lightings.
The outdoor lighting segment includes places such as street lights, parks, municipal, industrial, tourism spots. The outdoor LED lighting market forecast in 2020 is expected to reach a CAGR of 13.1% by 2027. Increasing government initiatives to promote tourism and develop public infrastructure is driving the market growth.
Based on the end-use the LED lighting industry can be divided into residential, commercial, industrial, and government segments. among these segments, the residential LED lighting market accounted for the largest market share of greater than 55% in 2019. Increasing per capita income, and residential construction is expected to drive the market growth.
The industrial LED lighting market size is anticipated to grow at the highest CAGR over the forecast period. The growth can be attributed to stringent industrial lighting regulations and growing LED lighting applications in the horticultural sector.
Governments across the world are upgrading their energy efficiency policies. Major economies around the world are supporting the adoption of energy-efficient LED bulbs to reduce electricity consumption from the general lighting sector. The U.S. LED lighting market has witnessed exponential adoption of led light fixtures from both residential and commercial sectors after 2012.
The led light prices have also decreased considerably in the last five years and are forecasted to continue to fall till 2025. LED lamps reduce not only electricity consumption but also have a significantly longer lifespan of 50,000 hours. These lamps also emit very little heat compared to traditional light sources, including incandescent, halogen & CFL lamps.
Increasing demand for troffers, downlights & high-bay LED lights around the world is anticipated to flourish the European LED lighting market growth. Moreover, factors such as the upcoming Tokyo Olympics, the introduction of DLC V5.0 used in high brightness LED lights, and forward integration of key LED manufacturers are expected to boost the Asia Pacific LED lighting market share.
The LED lighting market is highly diversified with many small players entering the market due to the low entry barrier. however, brand value and product innovation play a crucial role in maintaining the business of top market players. Companies such as Signify Holding (Former Philips Lighting); OSRAM; Acuity Brands; CREE, Inc., are among the top LED lighting manufacturing companies in the world.
Key strategies adopted by LED lighting manufacturers involve product innovation, design innovation, updating existing product offerings, merger & acquisition, and partnership. For instance, in March 2020, Signify Lighting acquired ‘Cooper Lighting Solutions‘ from Eaton.
The industry is witnessing significant strategic developments in recent years, forward integration is among the most common strategy practiced by semiconductor manufacturing companies, these companies are manufacturing their own LED lighting product line in order to establish themselves as LED lighting manufacturers. They benefit from this move as they may cut down on the significant cost of raw material and can practice economies of scale by utilizing their existing production lines in order to further reduce the production costs.
Production machinery accounts for the largest investment in the LED lighting manufacturing process, many small companies entering this market avoid this investment by procuring individual parts from Chinese manufacturers and assemble them for selling in the market. such assembled products are often low-quality and spurious.
The introduction of lighting safety standards and labeling systems has halted the practice of importing low-quality LED lamps from Chinese LED lighting parts suppliers considerably. The COVID-19 has a significant impact on the Global LED lighting market forecast in 2020, the industry is facing a steep fall in demand, closed production lines, mass layoffs, and closure of factories. Companies are also refraining from spending on marketing and promotional activities during the global pandemic. Following is the list of top LED lighting manufactures in the world:
|Base year for estimation||2019|
|Actual estimates/Historical data||2017 – 2019|
|Forecast period||2020 – 2027|
|Market representation||Revenue in USD Billion & CAGR from 2020 to 2027|
|Regional scope||North America, Europe, Asia Pacific, Latin America, Middle East & Africa|
|Country scope||U.S., Canada, UK, Germany, France, China, India, Japan, South Korea, Taiwan, Brazil, Mexico, UAE, and KSA|
|Report coverage||Market size estimates and forecast, company market share analysis, competitive landscape, market dynamics, drivers, restraints, opportunities & challenges, qualitative analysis and trends|
|25% free customization scope (equivalent to 9 analysts working days)||Do you have any additional requirements? We can incorporate the same at no extra cost.|
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