LED Lighting Market Size, Share & Trends Analysis Report By Product (Basic LED, High Brightness LED, OLED), By Design (Lamps, Luminaires), By Application (Indoor, Outdoor), And Segment Forecasts, 2018 - 2025

Industry Insights

The global LED lighting market size was estimated at USD 29.65 billion in 2016. Increasing demand for power-efficient illuminating systems across residential, commercial, and industrial sectors, rising concern over reduction of non-renewable sources of power, and decreasing price of LED lights are likely to aid in the growth of the industry over the coming years.

Light emitting diodes are highly efficient, reliable, and yield longer life span, which is anticipated to boost its demand in various applications, including indoor and outdoor solutions. These lights are cost effective as compared to incandescent lights, delivering around 50,000 hours of illumination with a small amount of energy consumed.

Their lower cost of operation and reduced heat losses also makes them a suitable replacement for incandescent lights. Technological advancements, shift from conventional to green lighting, enhanced energy efficiency standards, and declining prices have also spurred demand.

In addition, strict regulatory policies regarding conventional lighting and energy consumption across U.S., European Union, China, and Canada are anticipated to favor market demand through 2025. Corresponding ratings and design standards categorizing energy efficiency, such as CASBEE in Japan, BREEAM in EU, and standards for green construction in China, are finding prevalence across the globe.

Smart illuminations are also anticipated to offer lucrative opportunities for application in industrial and commercial areas. They have the capability to adjust light using control zones. Smart city schemes have become predominant in U.S. and several European nations with rising focus on strategies to lessen peak power demand and overall consumption of energy.

Product Insights

LED lighting solutions are ten times more proficient than incandescent solutions. These illuminating products can be classified into basic LED, high brightness LED, Organic LED (OLED), and others. Basic light emitting diode is estimated to hold the largest market share due to several features such as low cost, light weight, high temperature range, and shorter response time.

OLED lighting is projected to exhibit a significant CAGR of over 23.0% from 2017 to 2025. It allows higher contrast and enhanced brightness. Moreover, a wide viewing angle as well as wide range of pixel sizes offered by OLED fixtures is driving demand within the market.

Design Insights

Based on design, the LED lighting market has been bifurcated into lamps and luminaires. LED lamps emerged as the largest segment in 2016. These lamps have various advantages over incandescent ones, including robustness, energy efficiency, and good temporal stability. Moreover, they are available in various designs and applications such as T-Lamps, reflectors, A-Lamps, and MR-16 lamps. In European countries, price of LED lamps is anticipated to compete with compact florescent lamps by 2018, which shall further speed up the shift from CFLs to light emitting diodes. In addition, accentuated regulation roadmaps to phase out incompetent lightbulbs shall contribute to demand for light emitting diode lamps in residential as well as commercial applications.

The residential application consists of portable plug-in fixtures such as table lamps, pendants, and floor lamps as well as permanently installed fixtures such as under cabinet lights and recessed sconces. It also includes guest houses/bed-and-breakfast accommodation and small-scale home office lightings that are analogous in structure to residential houses.

The market for LED luminaires is predominantly driven by new installations. It includes lights used in streetlights, high bays, downlights, track lights, troffers, and suspended pendants for various applications. LED luminaires deliver more light per output power. They are easier to control, and permit optic designers to use them more proficiently and use less light to illuminate the same area. According to the Department of Energy (DOE), an anticipated 180 million lamps were activated in outdoor stationary lighting installations in 2010. In 2014, a DOE survey found that around 10 per cent of the overall outdoor installations comprised light emitting diode solutions.

Application Insights

The market is classified on the basis of application into indoor and outdoor lighting. The indoor segment was valued at over USD 20.0 billion in 2016 and is expected to witness stable growth throughout the forecast period. The segment is further classified into residential, commercial, industrial, and others. The commercial sub-segment accounted for the largest market share in 2016. Usage of LED lights in offices, retail stores and malls, hospitals, education buildings, and others has risen significantly over the past few years. High adoption of light emitting diodes as an alternative to florescent, HID, and incandescent lightings has paved the way for indoor light emitting diode lighting on a large scale.

Outdoor applications include airports, corporate campuses, industrial, government, and healthcare infrastructure, highways and roadways, and public places such as signage and traffic signals. Demand can be highly affected by public policy interventions and municipality support. Government initiatives such as LightSavers program undertaken by The Climate Group are expected to trigger the substitution of traditional lighting solutions. Rising demand for high resolution 10 mm billboards and signs, which are exemplary for high-volume pedestrian traffic zones, and customizable content are anticipated to revolutionize the outdoor display industry over the coming years.

Outdoor light emitting diodes can be classified into architectural, public places, and others. Architectural illumination emerged as the largest outdoor application segment. The segment has been an early adopter of LED lightings and is widely used in various applications such as exterior commercial wall lights, ground recessed lights, lamp posts, and architectural exterior floodlights.

Regional Insights

Asia Pacific accounts for the largest share of about 40.0% in the global market and is likely to continue dominating in terms of both usage and manufacturing. Taiwan, Japan, and China are key contributors to regional growth owing to initiatives undertaken by the respective governments for embracing light emitting diodes and existence of a large number of market players.

The debt crisis in Europe adversely impacted demand for LED since their production requires vast capital investments. In recent times, European and North American markets have witnessed a boom owing to government support and growing usage of ultra-modern lighting in several industries.

Strong dollar policy is likely to help U.S. become a major growth driver for overall demand for LED illumination. The country has also been a strong advocate of light emitting diode lighting. In recent years, U.S. has announced new policies and guidelines regarding the use of light emitting diode technology, invested in research and development of energy-efficient lighting solutions, expanded use of light emitting diode lighting in commercial, industrial, and residential applications, and participated in public-private partnerships to boost local markets.

LED Lighting Market Share Insights

Key contributors to the market include Philip Electronics N.V.; Cree Corporation; Osram Opto; Digital Lumens Inc.; GE; Toshiba Corp.; Dialight Plc; and Cooper Industries Plc. These players focus on improving technology, developing cost-effective products, and enhancing performance. Product optimization, technology innovation, and product development are crucial for industry participants to maintain a competitive edge.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global LED lighting market report on the basis of product, design, application, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Basic LED

  • High brightness LED

  • OLED

  • Others

• Design Outlook (Revenue, USD Million, 2014 - 2025)

  • Lamps

    • A-Lamps

    • MR-16

    • Reflectors

    • T-Lamps

    • Others

  • Luminaires

    • Streetlights

    • Downlights

    • High Bays

    • Troffers

    • Track lights

    • Suspended pendants

    • Others

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Indoor

    • Commercial

    • Residential

    • Industrial

    • Others

  • Outdoor

    • Architectural

    • Public places

    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa