Led Lighting Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Led Lighting Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The LED Lighting Market size is estimated at USD 100.20 billion in 2023, and is expected to reach USD 171.53 billion by 2028, growing at a CAGR of 11.35% during the forecast period (2023-2028).

LED lighting has become significantly popular in recent years due to its energy efficiency, durability, and versatility. It has found a wide range of applications, including residential and commercial, outdoor, automotive, and decorative lighting. It can be found in various shapes and sizes, including traditional bulb shapes, tube lights, spotlights, and floodlights.

Key Highlights

• The rising trend of smart lighting systems, which smartphones and other smart devices can control, has also contributed to the growing demand for LED lights. This is because, compared with fluorescent lighting technologies, LED lighting systems are much easier to integrate with smart controls to create intelligent and responsive living environments in homes, offices, and cities, delivering light when and where needed.
• Manufacturers have begun to lower the cost without compromising quality. This makes residences a suitable option for LED lighting applications. Residential owners can also enjoy monetary savings when using LED lamps. LED lights last a long time and use a fraction of the energy. Many homeowners are constantly looking for ways to be more eco-friendly. LEDs provide that as they contain no mercury and are recyclable.
• Apart from houses, office spaces are also becoming one of the common LED lighting applications. In today's business world, owners and managers are placing more emphasis on the overall well-being of their employees. By switching to LED lighting, offices can provide bright light for their employees. This helps them see better and experience less eye fatigue. The color of the light can help brighten moods and comfort.
• One of the main reasons why the initial investment for LED light manufacturing is high is the cost of raw materials. LED lights require high-quality semiconductor materials, such as gallium arsenide, gallium nitride, and indium phosphide, which are expensive. In addition, LED lights require other materials, such as electronic components and phosphors, which are also relatively expensive.
• The COVID-19 pandemic increased awareness of the importance of proper lighting in creating healthy and safe indoor environments. As a result, there has been an increased demand for lighting products that can improve indoor air quality, reduce germ spread, and enhance building occupants' overall health and well-being.

LED Lighting Market Trends

Increasing Need for Energy-efficient Lighting Systems and Favorable Government Regulations to Drive the Market

The rising population leading to rising residential and commercial construction is one of the major factors that has increased the demand for various basic amenities, especially power. As per several reports, electricity demand in the country has been continuously increasing on all fronts, including the domestic, agriculture, commercial, and industrial sectors. Due to the continuously rising population, various nations cannot cope with the exorbitant demand. This has led to a major power crisis and a critical need for energy efficiency.

Notably, energy efficiency is called the "first fuel" in clean energy transitions, as it facilitates some of the quickest and most cost-effective CO2 mitigation alternatives, along with minimizing energy bills and strengthening energy security. Energy efficiency can be considered a single large measure to avoid energy demand in the Net Zero Emissions by 2050 Scenario. It can also be considered a suitable measure of electrification, behavioral change, digitalization, and material efficiency.

The increasing need for energy-efficient lighting systems has been largely realized after the government started participating and encouraging favorable initiatives.

For instance, many governments worldwide are acting quickly to phase out inefficient light sources through various initiatives such as performance standards, labeling, and incentive programs. For instance, in Europe, where the transition to LED started over a decade ago, the European Union further updated regulations under the Ecodesign Directive and the Restriction of Hazardous Substances Directive that would eliminate virtually all fluorescent lighting in 2023.

LED lights can change the lighting scenario of the world in the future. They are also widely used in electronics and gadgets like LED televisions, watches, and mobile screens. LED lights' long-lasting, money-saving, and extremely efficient benefits make them power-packed, thus driving their role in the global market.

Asia-Pacific Expected to Hold Significant Market Share

• The Asia-Pacific region is expected to experience an increase in demand for LED lighting, mainly due to the growing demand for energy-efficient lighting solutions and the various government initiatives promoting their applications across multiple industries in the market. LED lights are becoming more popular in the region due to their numerous benefits, such as low power consumption, longer life, and a wide range of color options.
• The growth of the Asia-Pacific LED lighting market is also driven by the robust development of the region's gradual transition toward energy-efficient lighting solutions, lighting infrastructure, and the increased adoption of smart lighting solutions, coupled with increasing awareness among people about the importance of energy-efficient lighting solutions.
• Incorporating innovative features into LED lighting systems, such as dimming technology, motion sensors, and Bluetooth connectivity, further propels the LED lights market's growth. The increasing popularity of smart lighting products, such as voice-activated lights, motion sensors, and timers, is becoming increasingly popular in commercial and residential settings due to their convenience and energy savings. The rising demand for energy-efficient lighting by numerous end users is expected to boost the market growth in the Asia-Pacific region. Many professionals use LED lighting to provide competitive advantages over conventional compact fluorescent lamps or other lights.
• LED lighting efficiently boosts workers' productivity, enabling better quality control and easier operations. These lights are also safe and cost-effective. LED lighting enhances light levels and quality and significantly reduces light energy consumption. All these factors stimulate the adoption of energy-efficient lighting over the forecast period.
• Many western countries are experiencing saturation in the studied market, and the price war among Chinese LED lighting market players has heated up. Numerous manufacturers are looking for opportunities in other parts of the region. The growing need for LED lighting (including smart LED) in developing countries like India and Vietnam can provide a great opportunity, thus boosting the domestic demand for LED lighting in the region.

LED Lighting Industry Overview

The LED lighting market is fragmented due to the presence of many regional and international players like Heliospectra AB​, Dialight PLC​, Eaton Corporation​, General Electric Company, and OSRAM GmbH. With a prominent share in the market, these major players are focusing on expanding their customer base across foreign countries. These companies leverage strategic collaborative initiatives to increase their market share and profitability. However, with technological advancements and product innovations, mid-size to smaller companies are expanding their market presence by securing new contracts and tapping new markets.

• February 2023 - Heliospectra introduced MITRA Flex, a revolutionary flexible far-red light for application-based growing. The new solutions provide customers with three spectra in one without sacrificing power, making it ideal for specialized and application-based growing, such as far-red light treatments at the end of the day or the end of production, or to guarantee a healthy crop all year long, even during low light seasons.
• January 2023 - Nichia Corporation and Infineon Technologies AG announced the launch of the industry's first fully integrated micro-LED (µPLS light engine) light engine for high-definition (HD) adaptive driving beam applications. The µPLS light engine uses Nichia's unique in-house LED chip, micro-LED technology, and an integrated LED driver IC from Infineon that can drive all 16,384 micro-LEDs individually using pulse-width modulation (PWM) control.

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