The global LED lighting market size is expected to reach USD 135.58 billion by 2028, according to a new report by Grand View Research, Inc., registering a CAGR of 12.5% over the forecast period. LED lighting offers benefits, such as improved energy efficiency, low heat emission, cost-saving, directional controlled lighting, longer service life, and nanosecond switching, which have been instrumental in driving the market growth.
In addition, the flexibility of using LED lighting for complex, compact shape, and aesthetically pleasing design fixtures has led to higher adoption rates, specifically across residential and commercial spaces. LED manufacturers are incorporating features, such as occupancy sensor, daylighting (bright white-blue light), dim-ability, and timer, to attain smart lighting capabilities at affordable prices.
Moreover, favorable government policies, rebates, and retrofit programs for commercial, industrial, and residential sectors to encourage the adoption of LED lighting are driving the market growth over the forecast period. Flicker-free LED lighting was introduced to reduce power consumption, facilitate long service life, and reduce the consumption of inefficient, high-wattage light sources, such as incandescent, HID, and CFL.
The market has been transforming radically in line with the continued advancements in LED lighting and semiconductor technology as well as the growing demand for sustainable and energy-efficient solutions. The advent of connected and controlled lighting technology has boosted the demand for lamps and fixtures. For instance, the Hue Lighting by Philips is a smart home lighting system that provides an entire range of lights that can be controlled using the Hue app on smartphones.
The growing preference for smart and Wi-Fi-enabled light bulbs is expected to emerge as one of the prominent factors driving the market growth over the forecast period. The Covid-19 pandemic disrupted lifestyle and business operations worldwide. Due to the delayed construction projects, owing to a temporary shutdown, the LED lights’ purchase order, delivery timeline, and payments were delayed, resulting in low revenue generation for the manufacturers.
Moreover, the companies relying on raw material suppliers from China faced delays, which hampered the production of new LED lamps and luminaires. Hence, the global market witnessed a decline in the overall revenue in the year 2020. The market was expected to recover in 2021 with reduced Covid-19 cases; however, the pandemic's second wave for an uncertain period is likely to affect the year-on-year growth rate. However, the improved knowledge about Covid-19 and continued business functions with preventive measures seem to be favorable for increasing the product demand over the forecast period.
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The rising demand for different product types for enhancing the aesthetics in luxury hotels, office spaces, as well as residential spaces is contributing to the market growth
The lamps segment is anticipated to register the highest CAGR over the forecast period. The residential and commercial sectors primarily drive the demand for A-type, T-type, R-type, and B- & C-shaped wall and table lamps owing to their visibly pleasing aesthetics and varied illumination capability to enhance indoor and outdoor spaces
Asia Pacific is expected to lead the global, in terms of revenue share as well as growth rate, over the forecast period
The growth of APAC market is credited to the presence of large-scale manufacturers hotels, malls, and other commercial spaces in countries, such as China, India, Indonesia, Japan, and Vietnam
Most of the major players offer an array of products for residential, commercial, and industrial applications
Vendors in this market have been relying on an inorganic growth strategy to capture higher market shares
For instance, Signify Holdings acquired GE Lighting and Philips to extend its product portfolio and expand its geographical footprint
Grand View Research has segmented the global LED lighting market on the basis of product, application, end-use, and region:
LED Lighting Product Outlook (Revenue, USD Billion, 2016 - 2028)
LED Lighting Application Outlook (Revenue, USD Billion, 2016 - 2028)
LED Lighting End-use Outlook (Revenue, USD Billion, 2016 - 2028)
LED Lighting Regional Outlook (Revenue, USD Billion 2016 - 2028)
Middle East & Africa
List of Key Players of LED Lighting Market
Acuity Brands Lighting, Inc.
Cree Lighting (Ideal Industries, Inc.)
Digital Lumens, Inc.
LSI Industries, Inc.
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