Global LED Lighting Market Overview, 2023-28

Global LED Lighting Market Overview, 2023-28

By virtue of its advanced features, LED is expected to supplant the traditional Compact Fluorescent Lamp (CFL) and Cold Cathode Fluorescent Lamp (CCFL) lighting markets. Furthermore, it is a low-cost solution for all lighting and other applications, such as backlighting in large-sWolfspeedn displays and non-backlight displays (OLED). Aside from the previously mentioned cost savings, the initial cost of LED lighting is very high, which limits its initial acceptance. However, because LEDs have a longer lifespan, the overall cost of the same is found to be very low when compared to CFLs. Consumers will become more aware of the advantages of LED lamp longevity, which will lead to increased adoption of LED products such as LED lamps and ceiling lights. Growth in display backlighting applications, lower LED lamp costs, longer life span, and high LED efficacy are key factors driving the global LED lighting market.

According to the research report, “Global LED Lighting Market Overview, 2028” published by Bonafide Research, the market is anticipated to reach a market size of USD 157 Billion during the forecast period, increasing from USD 78.94 Billion in 2022 with an expected CAGR of 12.34%. Furthermore, rapid advancements in semiconductor technology, as well as favorable government policies and initiatives encouraging the adoption of LED lighting technology, are factors driving the market growth. The introduction of advanced products with long service life, Wi-Fi enabled, nanosecond switching, and flicker-free features by major players are expected to support the target market's growth. For example, Signify N.V., a lighting solution provider, announced the launch of smart LED down-lighter, T-Bulb, T-Beamer, and Batten under the Wiz smart bulb brand portfolio in August 2021. The newly released products use Wi-Fi and are expected to attract new customers to help the company grow.

The government's support for energy-efficient lighting technologies through various regulations has expanded the applications of LED lights across various industrial, commercial, and residential sectors. Furthermore, lighting consumes nearly 10% of household electricity and 18-40% of commercial premises' electricity. Globally, there is an increasing demand for energy conservation, which provides opportunities for the market. The transition to energy-efficient lighting is expected to reduce global lighting electricity demand by 30-40% by 2030. Product innovation by various companies is also contributing to market growth. Realme India will launch Realme Smart LED bulbs in India in July 2022. With an input voltage of AC 120-250V, the product has a rated power rating of 9W. The Realme Link app, Google Home, or Amazon Alexa can be used to control the lights. Because of the significant change in demand for LED technology with improved features and usage, the demand for outdoor LED lighting has historically been subject to moderate growth. This is expected to drive market growth during the forecast period.

A noticeable increase in industrial construction activities, combined with rising demand for energy-efficient lighting solutions, is expected to positively impact target market growth. However, the global COVID-19 outbreak has slowed construction and infrastructure development, resulting in low demand for LED lighting. In addition, low consumer awareness of installation costs is a factor impeding the market growth. However, as import duties from China have increased, several companies have begun shifting production lines and sourcing LED lighting solutions and components from other countries, increasing the installation cost of manufacturing facilities and raw material suppliers' bargaining power.

Favorable business policies implemented by developing-country governments and backed by new venture capital firms are resulting in the emergence of new market entrants with innovative solutions. Similarly, major players are leaning toward acquiring significant market share through strategic business acquisitions. The global LED lighting market is being driven by rising demand for energy-efficient lighting, an increase in the number of smart city projects, and overall infrastructure development. Lighting-as-a-Service (LaaS) will gain traction, ushering in a new business model and propelling other applications such as connected lighting and facility management. It is expected to reduce consumer capital expenditure, with service providers bearing upfront costs. In addition, the COVID-19 pandemic had a significant impact on the market. Its impact was felt at the first or starting point of the market value chain, namely lighting product manufacturers. Furthermore, the market experienced a production halt and supply chain disruption, resulting in weakened industrial output growth and declining light manufacturing output across major manufacturing hubs.

Recent Developments:
• In February 2021, Orient Electric announced the launch of its emergency LED lights solutions which provide backup lighting for up to 4 hours during a power outage. The range includes LED Bulbs, LED Batten, LED Recess Panel, and Bulkhead.
• On 1st October 2021, General Electric Company partnered with True Value. True Value is the only hardware channel distributor of GE.
• In January 2021, Sensor Electronic Technology (SETi) and Seoul Viosys, the leading global providers of LED technology and subsidiaries of Seoul Semiconductor, partnered together to launch their new Violeds technology that can quickly and effectively kill 99.437% of SARS-CoV-2 in less than one second. The testing was conducted in December 2020 through KR Biotech, a South Korea-based research institute specializing in sterilization testing of the new coronavirus.
• In May 2022, Syska LED announced the release of an LED Recessed SMD downlight, the lighting solution has numerous end-use cases, provides bright illumination, and is available in a wide range of watts.

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

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

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

Regions covered in the report:
• North America
• Europe
• Asia-Pacific
• South America
• Middle-East & Africa

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.