Europe LED Lighting Market Outlook, 2028

Europe LED Lighting Market Outlook, 2028

A key factor driving the demand for LED products in Europe has been the European Union’s policy measures banning the sale of inefficient lighting technologies. In 2009, Europe phased out incandescent lamps in the region. In 2016, directional halogen lamps were also phased out. Similarly, in September 2018, the region also banned the sale of non-directional halogen lamps. These policy measures have facilitated consumers' gradual replacement of traditional lighting products with LED technology-based products. Moreover, to generate cost savings for consumers, switching to energy-efficient LED lights has provided significant environmental benefits. The high energy costs in the region are forcing households, public investors, and governments to consider energy-saving lighting solutions. The governments across the region are also providing subsidies and incentives to increase the adoption of LED products among consumers and phase out older and less efficient technologies to enhance the overall efficiency of the lighting industry in Europe. Other key factors driving the demand for LED products in Europe include infrastructure growth and a decline in the average price of LEDs.

According to the research report, Europe LED Lighting Market Outlook, 2028, published by Bonafide Research, the market is projected to add USD 13.43 billion from 2023 to 2028. The rise in the number of stringent government regulations, such as the ban on less-efficient lighting sources and incentives and rebates on LED lighting, is expected to drive the market significantly over the forecast period. The region also has several standards that govern the safety and performance of indoor commercial lighting as well as garage illumination, roadway lighting, and parking lighting. Moreover, increasing awareness about energy conservation is further driving the market growth. The European commercial and industrial sector is flourishing owing to the growth of the regional automotive and IT industries. The region has also fully recovered from the 2008 financial crisis, and most industries affected by it have been recording steady growth over the years. In 2018, the region experienced the lowest office vacancy rates since the financial crisis. Favorable business conditions and growing individual economies are expected to improve the demand for LED lighting in the region over the forecast period.

In Europe, Germany dominated the overall regional market in 2022, and it is expected to continue this trend during the forecast period. Germany is expected to see higher demand during the forecast period due to the country's large manufacturing units of smart home equipment. Further, the rapid growth of the European market is attributed to the increasing adoption of LED lighting in residential spaces in countries such as Germany, the United Kingdom, and France as a result of improved energy efficiency and cost-effectiveness. More than 14% of household lighting in the UK is LED. In addition, increasing government support and initiatives for replacing incandescent bulbs with more energy-efficient LEDs are expected to boost market revenue growth in countries in the region. For example, the UK government's Green Homes Grant program will help homeowners install energy-efficient LED lights to save energy, which is expected to drive market revenue growth in the near future.

Similarly, the construction industry has observed notable growth from the commercial and industrial sectors in the past few years, as the need for commercial spaces is on the rise. To benefit from this trend, electricity supply companies have collaborated with the government to distribute subsidized LED lights to the commercial sector. As LED lighting considerably brings down electricity and maintenance costs as compared to traditional technologies such as gas-discharge lights, incandescent lights, and compact fluorescent lights, such collaborations are expected to further encourage the adoption of LED lighting solutions in the enterprise sector. According to the report, luminary products will lead the market in 2022 by more than 55%.

Integration of intelligent technology within the infrastructure and the presence of facilities to control lighting and the electrical device is expected to lower operating costs and offer the advantage of remote monitoring and control across the region. Due to the adoption of LED lighting, improved building energy efficiency is expected to tackle prevailing energy problems and subsequently cut down on electricity bills and put less pressure on the existing infrastructure. Also, with the increasing demand for smart buildings, which use emerging technology comprising of the Internet of Things, sensors, software, and the option for online connectivity to monitor and provide insightful solutions for achieving higher energy efficiency, which in turn is expected to propel the growth of the LED lighting market till 2028, Based on the installation types, the market is anticipated to be dominated by new LED lighting projects.

Europe's indoor LED lighting segment is anticipated to grow owing to the rise in residential construction activities and the focus of government authorities on home renovation projects. Furthermore, stringent government regulations, such as a ban on high-energy-consuming fluorescent and halogen bulbs, will accelerate the industry's value. Incentives and rebates on LED lighting are supporting the industry's demand for LED lights. The European government has mandated the Eco-Design regulation for selling lamps in Europe. The existing rules under European Regulation No. 874/2012 will be replaced by a new energy regulation that sets energy efficiency requirements, bulb lifetime, and warm-up time under the EU 2019/2015 regulation, effective September 1, 2021. Furthermore, companies in the region are launching new products to cater to consumer demands in design, energy efficiency, applications, and other functionalities. In August 2020, for instance, Osram Semiconductors of Germany launched the Synios S 2222 product series with a compact size, high brightness value, and wide color range of light sources. The Synios S 2222 product line comes in six different colors, providing high-quality, personalized lighting solutions for different application scenarios, such as architectural lighting.

According to recent reports, the global urban population has escalated from 751 million in 1950 to over 4.2 billion in 2018 and is further projected to hit 7.7 billion by 2050. With demographic changes, smart city projects, many of which are emerging in Europe, have been identified as an effective and promising way to improve cities. In Europe, the increasing rate of smart city projects is indirectly expected to favor the growth of LED lighting, given the demand for smart and sustainable lighting products. It is prudent to mention that this trend has also been majorly fuelling the smart lighting market, which is recently traversing a lucrative roadmap, given the crucial role these components play in smart city infrastructure. Furthermore, the regional government has launched several smart city programs to deploy smart lighting solutions in outdoor and indoor spaces. The demand for sustainable and energy-efficient lighting systems will drive the Europe LED lighting market to new heights in the coming years. Based on the sales channel, the retail-wholesaler segment dominates the market, followed by direct sales.

Cities in various countries of Europe, including Germany, are developing and applying strategies to improve the public, commercial, and residential lighting infrastructure of the countries by reducing costs and improving the urban environment, giving the decorative lighting segment an opportunity to grow. Furthermore, emerging technologies such as the Internet of Things and the widespread adoption of smart homes are fuelling the growth of technology-enabled decorative lighting. For instance, in August 2020, Ledvance GMBH, a Germany-based company, announced the LEDVANCE and Bosch Smart Home lighting solutions for the smart home. The integration of LEDVANCE Smart+ products into the Bosch Smart Home System makes the application even easier for customers; it is a high-quality solution for a safe home without the need for an additional bridge. Decorative lighting and LEDs are also widely used in offices across the country. In order to provide efficient and healthy lighting facilities, several organizations in Europe are utilizing intelligent lighting systems and LED products, further supporting industry growth.

Covid-19 Impacts:
In 2020, the COVID-19 pandemic negatively impacted the global market, and Europe was no exception to that. Strict lockdowns and temporary suspensions of construction sites resulted in a decline in demand for LED lighting. However, in the second quarter of 2021, construction activities witnessed growth with the introduction of new as well as redesigned projects, thus leading to the gradual recovery of the LED lighting market in the European region.

Recent Developments:
• In December 2022, the Ukraine government announced that it will be providing the Ukrainians will be given 5 LED lamps for replacing their incandescent lamps. This initiative will help Ukraine save energy during these difficult times.
• In March 2020, Signify, which is a world leader in lighting, expanded its collaboration with Italy-based Planet Farms, which is a leading operator of vertical farms in Europe. The collaboration is expected to enable Plant Farms in producing and delivering the tastiest aromatic herbs and lettuce to its customers in Italy all year round. Signify is expected to provide Planet Farms with the Philips Greenpower LED production module managed with the Philips GrowWise Control System. Signify also made an agreement with Planet Farms to provide horticulture LED grow lights to its additional five vertical farms that the company is planning to build in different countries in Europe, including the U.K. and Switzerland, in the coming years.
• May 2022 - SYSKA LED, a major LED lighting solutions provider, announced the launch of Syska LED Recessed SMD Downlight (Glowslick-SSK-SLP). The innovative Syska LED Recessed SMD Downlight is the perfect lighting solution for indoor applications, as it can be used in malls, stores, homes, showrooms, and office spaces.
• June 2021 - Syska announced the launch of new LED Lights under the ‘T5 LED Batten’ brand in India for only Rs 449 and Rs 549. Syska T5 LED Batten (PC) and Syska T5 LED Batten (AL) LED have surged the protection of 4KV and are installed with 440V OVP(Over Voltage protection).

Major Companies present in the market:
Samsung, Koninklijke Philips Nv, Panasonic Corporation, Opple Lighting Co. Limited, Osram Licht Ag, Valeo Sa, General Electric Company, Hubbell Incorporated, Magneti Marelli Spa, Seoul Semiconductor, Havells India Limited, Signify Holding, Acuity Brands Lighting Inc., Stanley Electric Co. Ltd, NVC Lighting Technology Corporation, Siteco Gmbh, Everlight Electronics Co. Ltd LG Electronics

Considered in this report
• Geography: Europe
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Europe LED Lighting market with its value and forecast along with its segments
• Country-wise LED Lighting market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• Germany
• United Kingdom
• France
• Spain
• Italy
• Russia

By Product:
• Lamps
• Luminaries

By Application:
• Indoor
• Outdoor

By Sales Channel:
• Retail/Wholesale
• Direct Sale
• E-commerce

By Installation Type:
• New
• retrofit

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. 

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the LED lighting industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.