Global Commercial Lighting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Commercial Lighting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global commercial lighting market is projected to register a CAGR of 8.7% during the forecast period. The ongoing and upcoming smart city projects in several countries, increasing focus of governments worldwide on energy consumption, escalating demand for LED lights and luminaires for outdoor applications, and growing acceptance of standard protocols for lighting control systems are significantly driving the growth of the studied market.

Key Highlights

• Commercial lighting can be tailored to meet any facility and its operations, depending on the use. When it comes to business lighting, maintenance needs, brightness intensity, and warranties are all critical considerations. A commercial building holds the capacity to accommodate a large number of people for various purposes, such as shopping, working, entertainment, and medical examination, among others. To guarantee that employees working in the area are comfortable and that the lux level requirements and energy efficiency standards are appropriate, a lighting design business produces designs that represent the activity conducted in the facility.
• The application, attributes, and function of light fixtures must be considered when it comes to commercial lighting design. T5 and compact fluorescent lights are standard commercial lighting design fixtures; however, LED light fixtures are becoming more popular due to price reductions.
• Well-designed lighting fixtures can enlighten a space's whole surroundings and infuse it with good energy. Hospitals, hotels, clubs, workplaces, retail stores, and other commercial establishments must pay close attention to their lighting design. This is because, with a well-designed commercial lighting structure, the company owners can make their establishment appear pleasant to visitors or clients.
• Furthermore, with the advances in technological trends, such as artificial intelligence and LED lighting, it has been easier for businesses to emphasize their interiors and create a functioning workplace. To reduce energy expenses, continual innovation is occurring in the commercial lighting market, which can significantly influence lighting products.
• Since the emergence of COVID-19, several firms have suffered supply chain issues. It was no different in the LED business. Because Asian nations supplied a large portion of the raw materials used in LEDs and drivers, the sector was severely impacted in March 2020 and April 2020, when the COVID-19 pandemic gripped the area.

Key Market TrendsCommercial Offices segment to maximum market share

• Commercial office lighting is usually one of the most overlooked and underappreciated aspects of a work environment. Choosing the right office light fixtures can be one of the smartest investments by the offices. It has the power to not only impact employee productivity and morale but can also increase the security of their building and overall customer satisfaction.
• Commercial office lighting is typically used in government buildings, hospitals, offices, retail stores, universities, and more. Commercial-grade lighting is durable and can include smart, advanced technology to increase efficiency and ease of use. Office lighting can affect a visitor's or employee's mood, enhance employee performance and add aesthetic appeal to the space. The best office lighting complies with safety regulations, puts people at ease, and provides a good balance of natural and artificial lighting.
• In recent years, LED lights have come into favor as an energy-efficient alternative to fluorescent lights. While LED lights may be slightly more expensive than fluorescent ones used in an office, they are likely to save the company money in the long term. This is because LED lights generally have a longer lifespan than fluorescent lights and do not use excess energy in the form of infrared radiation the way fluorescent lights do.
• LED lights can also be beneficial to the health of employees. Although it is unlikely that fluorescent lights could cause migraines, they may trigger symptoms of migraines in people who are predisposed to them. LED lights for office buildings are one of the biggest retrofit trends for businesses around the globe.
• According to research by the Department of Design and Environmental Analysis at Cornell University, employees who were exposed to natural light in the office reported an 84% drop in eye strain, headaches, and blurred vision, and research from the American Academy of Sleep Medicine also showed that exposure to natural light helps regulate hormones and keeps their circadian rhythm in check, assisting employees in sleeping soundly at night and working the next day productively.
• Moreover, office spaces are evolving away from the individual cubicle setting in favor of an open-office environment. In this new, open environment, the ambient room lighting is focused on creating a sense of unity and community in the room and among workers.

China in the Asia Pacific region to exhibit highest growth rate

• Lighting products are essential to industry, infrastructure, and daily life. As China's economy continues to grow and living standards rise, the mainland's demand for lighting is also expanding. In the last 20 years, China's lighting industry has developed rapidly, and the country has become a world‑leading producer and consumer of lighting.
• The China Association of Lighting Industry (CALI) indicates that the value of China's lighting market reached RMB 602.5 billion in 2020, up 0.4% yearly. Major products include light-emitting diodes (LEDs), compact fluorescent lamps (CFLs), electrodeless discharge lamps (EDLs), and organic light-emitting diodes (OLEDs). In China, commercial enterprises are spending more money on lighting shopping malls to attract customers. Lighting in offices, schools, and hospitals has also seen marked improvement.
• China has been promoting environmental protection and energy conservation. A succession of policies and regulations, such as The Energy Conservation Law of the People's Republic of China and Opinions on Accelerating the Development of Energy-saving and Environmental Protection Industries, is driving the development of environmental protection services. At the same time, promoting energy-saving and eco-friendly products is creating greater demand for energy-efficient lighting. The priority given by China to the policy of developing energy‑saving and environmental protection industries is propelling the development of LED lighting.
• Moreover, LED lights are rapidly replacing conventional lighting products in China. The Chinese government is also playing a significant role in driving the sector's growth by offering large-scale subsidies for the adoption of LED products. Moreover, the Chinese government has also banned incandescent bulbs in the country, with the National Development and Reform Commission first announcing the country's incandescent bulb phase-out roadmap in November 2011.
• As China's LED Lighting enterprises have gradually come of age, they have begun aggressively developing overseas markets. For example, Forest Lighting has merged with Germany's LEDVANCE, while Opple Lighting has set up several overseas subsidiaries. Meanwhile, mainland lighting companies have been expanding their domestic presence by setting up display centers and adding specialty stores. In the future, mainland enterprises are expected to invest more in technology and innovation to increase the added value of their products and raise their competitiveness.

Competitive Landscape

There is intense competition among major vendors in the market. Due to a broad range of suppliers of commercial lighting products, buyers can choose from numerous vendors, creating cut-throat competition among vendors of equal caliber in product portfolio and geographical reach. Further, companies are innovating in terms of various connected lighting products. Players like Wipro and Signify are trying to provide smart lighting products for commercial applications, such as retail, hospitals, etc.

• January 2022 - Acuity Brands, Inc., a prominent industrial technology company, announced that it is expanding its partnership with Microsoft to bring new capabilities to Acuity Brands' smart lighting, building automation solutions, and lighting controls. By integrating the power of Microsoft’s Cloud for Sustainability and Microsoft Azure IoT with Acuity Brands customer solutions, Acuity Brands and Microsoft would jointly facilitate end customers, operating numerous types of facilities and buildings, to calculate and forecast the environmental and financial impacts that these new lighting and building management technologies deliver.
• August 2021 - Signify debuted the first Philips LED A-class bulbs that comply with the more-strict EU Ecodesign and Energy labeling rules, which take effect on September 1, 2021. The new Philips LED bulbs with a longer lifespan are a wise investment for both the environment and the wallet. On September 1, 2021, the more environmentally friendly LED bulbs will be available in 40W and 60W counterparts.

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