Industrial and commercial LED lighting market size was estimated at USD 21.53 billion in 2014 and is expected to witness significant growth over the forecast period. High efficiency, reliability, and longer life span are expected to drive LED demand over conventional technologies. High brightness level, condensed size, low power consumption, and robust nature are some of the other factors projected to trigger industry growth.
North America industrial and commercial LED lighting market share, 2012 - 2022 (USD Million)
Next-generation lighting has become a substitute for incandescent bulbs owing to the low cost of operation, higher efficiency, and reduced heat losses. Technological advancements in traditional to green traditional lighting with higher energy efficiency standards and swift price erosion have led to spur demand.
Smart lighting is also expected to offer lucrative opportunities for application in commercial and industrial areas. It has the ability to adjust the amount of light required using control zones. Smart city schemes have become prevalent in the U.S. and Europe with rising focus on strategies to reduce peak power demand and the overall consumption of energy.
High initial cost and dominance of fluorescent lamps may inhibit industrial and commercial LED lighting market growth. However, government regulations to ban incandescent lamps are expected to minimize the impact over the next few years.
The industry can be classified on the basis of application into industrial, commercial, outdoor, and architectural segments. The architectural application includes illumination of building structures, digital signage, statues, landscapes and columns, and other decorative features.
Faster price erosion of LED lights has implications for its penetration in various application areas, decreasing the size of traditional lighting in terms of both, units and revenue. The industrial segment is expected to be slow-growing as compared to other counterparts owing to the presence of existing and widely used high-intensity discharge (HID) and fluorescent technologies with high performance.
The commercial segment further includes retail, hospitality, education buildings, office, and warehouse storage applications. The segment has witnessed high adoption as an alternative to HID, fluorescent, and incandescent lighting.
Outdoor applications include corporate campus, airport, industrial warehouse government & healthcare, municipal, and other non-public outdoor areas. Its demand can be affected by public policy interventions and municipality. Government initiatives such as LightSavers program by The Climate Group are expected to triggers the substitution of traditional counterparts. Growing demand for high resolution 10 mm signs and billboards, which are ideal for high-volume pedestrian traffic zones, and customizable content are expected to revolutionize the outdoor display industry over the next seven years.
Europe industrial and commercial LED lighting market is anticipated to account for substantial share due to rising government investment and ban on producing and importing incandescent lamps. Asia Pacific is also expected to be one of the leading contributors due to high construction rates, replacement of existing outdoor infrastructure, and government funding for high-efficiency building lighting. The Chinese government has provided huge incentives to replace traditional streetlights with LEDs in order to deploy standardized quality products and solutions.
In 2012, the government also announced to ban imports and sales of 100-watt and higher incandescent bulbs, which is further expected to elevate demand. In addition, increasing investment in infrastructure including roads, shopping centers, and rapid urbanization in countries such as Mexico, India, and Taiwan has created energy-efficient technologies. Other countries such as Russia, Germany, Denmark, and the U.K. are focusing on deploying efficient methods to improve quality and lower the overall cost.
Companies dominating industrial and commercial LED lighting market share include Philip Electronics N.V., Cree Corporation, Osram Opto, Digital Lumens Inc., GE, Toshiba Corp., Dialight Plc, and Cooper Industries Plc. These manufacturers focus on improving technology by the development of cost-effective products with improved performance. Production optimization, technology innovation, and product development are crucial for industry participants to maintain a competitive edge.
Report Attribute |
Details |
Market size value in 2020 |
USD 107.6 billion |
Revenue forecast in 2022 |
USD 165.9 billion |
Growth Rate |
CAGR of 28.2% from 2015 to 2022 |
Base year for estimation |
2015 |
Historical data |
2013 - 2015 |
Forecast period |
2015 - 2022 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2015 to 2022 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Application, region |
Regional scope |
North America; Europe; Asia Pacific; Rest of the World |
Key companies profiled |
Signify Holding, Cree Inc. (IDEAL INDUSTRIES, INC.); Osram Opto; Digital Lumens Inc.; Toshiba Corp.; Dialight Plc; Eaton |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
b. Asia Pacific dominated the industrial and commercial led lighting market with a share of 43.2% in 2019. This is attributable to high construction rates, replacement of existing outdoor infrastructure, and government funding for high-efficiency building lighting.
b. Some key players operating in the industrial and commercial led lighting market include Signify Holding, Cree Inc. (IDEAL INDUSTRIES, INC.), Osram Opto, Digital Lumens Inc., Toshiba Corp., Dialight Plc, and Eaton.
b. Key factors that are driving the market growth include high efficiency, reliability, longer life span, high brightness level, condensed size, low power consumption, and growing demand for smart lighting.
b. The global industrial and commercial led lighting market size was estimated at USD 85.2 billion in 2019 and is expected to reach USD 107.6 billion in 2020.
b. The global industrial and commercial led lighting market is expected to grow at a compound annual growth rate of 28.2% from 2015 to 2022 to reach USD 165.9 billion by 2022.
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The global electronics devices market (including consumer electronics and industrial electronics devices) is expected to be impacted significantly by COVID-19 as China is one of the major suppliers for the raw materials (used to manufacture devices) as well as the finished products. The industry is on the brink of facing a reduction in production, disruption in supply, and price fluctuations. While this can vastly encourage local manufacturers to step up and address the growing demand, the scarcity of raw material can still pose a challenge to this industry. The sales of prominent electronic companies is expected to be affected in the near future. The report will account for Covid19 as a key market contributor.
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