LED Lighting Market by Product (Lamps, Luminaire), Application (Indoor, Outdoor), Installation (New, Retrofit), Sales Channel (Direct, retail, E-commerce) and Region (North America, Europe, APAC, Rest of the World) – Global Forecast to 2029
[271 Pages Report] The global LED lighting market is projected to grow from USD 78.9 billion in 2024 to USD 118.4 billion by 2029, registering a CAGR of 8.5% during the forecast period. The LED lighting market is driven by a confluence of factors and trends. Energy efficiency remains a paramount driver, with LED technology offering substantial reductions in energy consumption compared to traditional lighting sources. Environmental sustainability is a key trend, influencing consumers and businesses to choose LED lighting for its lower carbon footprint and absence of hazardous materials. Technological advancements, coupled with decreasing production costs, enhance the affordability and versatility of LED lighting solutions, driving market growth.
LED Lighting Market Forecast to 2029
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Market Dynamics:
Driver: Favourable government initiatives and regulations for energy efficient LED lighting solutions across the world
Governments worldwide are increasingly recognizing the importance of energy efficiency and sustainability, leading to the implementation of favorable regulations that promote the adoption of LED lighting solutions. These regulations are designed to drive the transition from traditional lighting technologies to more energy-efficient and environmentally friendly alternatives.
According to US Department of Energy, the use of energy-efficient lighting technological products such as ENERGY STAR rated residential LEDs tend to use 75% lesser energy and tend to last 25 times longer than incandescent lighting solutions used in the country. As per the department of energy’s forecast, By the year 2035, it is expected that the predominant choice for lighting installations will be LED technology. The energy efficiency gains from widespread LED lighting adoption could reach an impressive 569 terawatt-hours annually by 2035. This amount is equivalent to the yearly energy output of over 92 power plants each generating 1,000 megawatts. This projection underscores the significant impact and growing prevalence of LED lighting in the global energy landscape.
In June 2023, the Biden-Harris Administration, in collaboration with the U.S. Department of Energy (DOE), has unveiled the initial group of recipients for the Renew America’s Schools grant program. This competitive initiative aims to facilitate energy enhancements in K–12 schools nationwide. A total of 24 Local Education Agencies (LEAs) in 22 states have been selected to collectively receive approximately $178 million in funding. This financial support will empower these educational entities to undertake a range of projects focused on reducing energy expenditures, minimizing emissions, and fostering the development of healthier, safer, and more conducive learning environments within their respective schools. This grant includes the funding for setting up of newer LED lighting solutions as an alternative to traditional energy-consuming lighting products.
Also, government offers various benefits for adopting LED lighting solutions instead of traditional lighting solutions. Numerous governments provide financial incentives in the form of rebates for both individuals and businesses undertaking the installation of energy-efficient lighting solutions. These rebates serve as a means to alleviate the upfront expenses associated with acquiring energy-efficient bulbs, thus rendering the transition to such lighting options more economically viable. Also, in certain nations, governmental authorities extend tax incentives to encourage the adoption of energy-efficient lighting systems. These incentives manifest as tax credits or deductions, enabling individuals and businesses to retain a greater portion of their financial resources while contributing to environmental conservation. By leveraging these tax incentives, users not only benefit from cost savings but also actively participate in initiatives aimed at promoting sustainable practices and reducing overall energy consumption.
Restraint: Functional problems associated with LED technology
While LED (Light Emitting Diode) technology offers numerous advantages, there are some functional problems and challenges associated with it. Generally, LEDs produce heat, and if not managed effectively, it can affect their performance and lifespan. Overheating leads to color shifting, reduced brightness, and a shorter overall lifespan. Adequate heat sinks and thermal management systems are crucial to mitigate this issue. Achieving consistent color across different LED products and over time can be a challenge. Variations in color temperature and color rendering occur, impacting the quality of lighting and making it difficult to match colors accurately, especially in commercial or industrial applications.
While LED technology has made significant strides in improving color rendering, some LEDs still struggle to accurately represent certain colors, affecting the overall quality of illumination. Thus, Color Rendering Index (CRI) issues are there to be solved. Advances in phosphor technology and color-mixing techniques aim to address this challenge. Also, LED drivers, which convert AC power to the DC power required for LEDs, introduce power quality issues such as harmonics and electromagnetic interference (EMI). These issues may impact the performance of other electronic devices sharing the same power supply. Thus, power quality issues are also there.
Opportunity: Rising adoption of LED lighting in horticulture sector
The use of LED lighting in horticulture has gained significant traction as a cutting-edge technology that offers numerous benefits to enhance plant growth and optimize crop yields. LED lighting is employed in controlled environment agriculture (CEA) systems, such as greenhouses and vertical farms, to provide artificial light that complements or replaces natural sunlight. LED lighting allows precise control over the light spectrum, enabling farmers to tailor the wavelengths emitted by the LEDs to meet the specific needs of different crops at various growth stages. This spectral control influences factors such as flowering, fruiting, and overall plant development. From the energy efficiency perspective, LED lights are highly energy-efficient, converting a larger proportion of energy into usable light for plants. This efficiency results in reduced energy consumption compared to traditional lighting sources, making LED lighting a sustainable and cost-effective choice for indoor farming operations.
With LED technology, growers can create customized light recipes by adjusting the intensity and spectrum of light. This level of customization allows for the optimization of plant characteristics, such as taste, texture, color, and nutritional content, catering to specific market preferences. LED lighting enables year-round cultivation independent of natural sunlight conditions. This is especially valuable in regions with extreme climates or limited sunlight hours during certain seasons, as it ensures a consistent and reliable environment for plant growth.
Challenge: Lack of common open standards for LED lighting
The lack of common open standards for LED lights is a notable challenge in the LED lighting industry. Common open standards play a crucial role in ensuring interoperability, compatibility, and seamless communication among different devices and systems. The absence of standardized communication protocols results in interoperability challenges. Different manufacturers adopt proprietary protocols, making it difficult for LED lighting products from different vendors to work together seamlessly. This limits the choices available to consumers and creates complexities in building automation systems. Also, proprietary protocols and closed systems lead to vendor lock-in, where consumers become dependent on a specific manufacturer's products and technologies. This lack of flexibility hinders innovation and limits consumers' ability to choose the best solutions for their needs.
Building automation systems often involves the integration of various devices and systems, including lighting, HVAC, security, and more. Without common open standards, integrating LED lighting with other building automation components becomes more complex and costly. Common open standards enable plug-and-play functionality, allowing devices to work together seamlessly without extensive configuration. The absence of such standards requires more manual configuration and troubleshooting during installation and integration processes. Also, smart lighting solutions often rely on standardized communication protocols for effective control and automation. The lack of common open standards slows down the adoption of smart lighting systems as consumers and businesses hesitate to invest in technologies that are not interoperable or future-proof.
LED lighting Market Ecosystem
Key companies in this market include well-established, financially stable providers of LED lighting products. These companies have been operating in the market for several years and possess a diversified portfolio of LED lighting which caters to a wide range of applications. Prominent companies in this market include Signify Holding (Netherlands), Acuity Brands, Inc. (US), Cree Lighting USA LLC (US), ams OSRAM AG (Germany), LG Electronics (South Korea), Dialight (UK), Panasonic Corporation (Japan), Hubbell (US), Savant Systems, Inc. (US), and Zumtobel Group (Germany).
By Application, outdoor segment likely to exhibit the highest CAGR during the forecast period
The outdoor application segment is poised to register the highest CAGR in the LED lighting market due to a surge in urbanization, infrastructure development, and a growing emphasis on outdoor illumination. Governments worldwide are investing in smart city initiatives, and the need for energy-efficient, durable, and environmentally friendly outdoor lighting solutions is escalating. LEDs, with their adaptability to various outdoor environments, longer lifespan, and lower energy consumption, are becoming the preferred choice for street lighting, architectural lighting, and landscape illumination. Additionally, the increasing demand for enhanced security and safety measures in outdoor spaces further propels the adoption of LED lighting.
By sales channel, retail is expected to account for largest share between 2024 and 2029.
The retail/wholesale segment is poised to dominate the market share from 2024 to 2029, emerging as the favored choice among consumers. The prevalence of numerous retail outlets, coupled with the inherent benefits of this option, including superior product quality, on-site verification, and immediate product availability, contributes significantly to the segment's expansion. Products are distributed through retailers, dealers, and affiliates within the retail or wholesale category. Typically, these channel partners boast a well-established local presence, enabling cost-effective customer reach in their respective markets.
By product, luminaire segment to exhibit highest CAGR from 2024 to 2029
The luminaire product segment is anticipated to exhibit the highest growth rate owing to a confluence of factors driving its demand. Luminaire products, encompassing a variety of lighting fixtures, are integral to modern lighting solutions across residential, commercial, and industrial settings. The increasing emphasis on energy efficiency and sustainability in lighting solutions has spurred the adoption of advanced luminaire products, particularly those incorporating LED technology. Technological innovations, such as smart and connected luminaires, are gaining traction, further boosting the growth of this segment. The flexibility, design versatility, and adaptability of luminaires to diverse lighting requirements contribute to their escalating popularity.
Asia Pacific region is projected to experience the highest growth in the overall LED lighting market during the forecast period
LED Lighting Market by Region
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The LED lighting market in India is projected to experience the most significant CAGR from 2024 to 2029. In recent years, LED lighting has emerged as the predominant form of artificial illumination, surpassing traditional lighting options including incandescent bulbs, compact fluorescent lamps (CFLs), fluorescent lamps, high-pressure sodium lamps, and metal halide lamps within the country. LED bulbs and luminaires dominate nearly all lighting applications, including offices, retail stores, hospitality facilities, industrial plants, roads, and now even in sports complexes. The country has witnessed a disruptive change, making conventional lighting sources obsolete, and due to this reason, India is likely to witness tremendous growth in the LED lighting market in the coming years.
Key Market Players
Signify Holding (Netherlands), Acuity Brands, Inc. (US), Cree Lighting USA LLC (US), ams OSRAM AG (Germany), LG Electronics (South Korea), Dialight (UK), Panasonic Corporation (Japan), Hubbell (US), Savant Systems, Inc. (US), and Zumtobel Group (Germany) are the major companies in the LED lighting companies.
Report Scope
The report covers the demand- and supply-side segmentation of the LED Lighting Market. The supply-side market segmentation includes the product type, installation, sales channel whereas the demand-side market segmentation includes application, and region.
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Report Metric |
Details |
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Market Size Available for Years |
2020–2029 |
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Base Year Considered |
2023 |
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Forecast Period |
2024–2029 |
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Forecast Units |
Value (USD Million/Billion) |
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Segments Covered |
Product Type, Application, Installation, Sales Channel, and Region |
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Geographies Covered |
Asia Pacific, North America, Europe, Middle East, Africa, and South America |
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Key Companies Covered |
Signify Holding (Netherlands), Acuity Brands, Inc.(US), Cree Lighting USA LLC (US), ams-OSRAM AG (Austria), LG Electronics (South Korea), Dialight (UK), Panasonic Corporation (Japan), Hubbell (US), Zumtobel Group (Germany), Savant Systems, Inc. (US) |
LED Lighting Market Highlights
In this report, the LED Lighting Market has been segmented into the following categories:
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Segment |
Subsegment |
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By Product Type: |
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By Application: |
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By Installation: |
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By Sales Channel: |
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By Region: |
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Recent Developments
- In September 2023, Advanced Lighting Technologies, LLC revealed that its affiliate, CLNA Holdings LLC, successfully completed the acquisition of the entire equity interests of Cree Lighting USA, Cree Lighting Canada Corp., and E-CONOLIGHT LLC collectively referred to as "Cree Lighting," from IDEAL INDUSTRIES, INC., and IDEAL INDUSTRIES (CANADA), CORP.
- In September 2023, A-Light, a division of Acuity Brands and a reputable manufacturer known for its best-in-class specification grade interior lighting solutions, introduced the Lino luminaire. This minimalist linear fixture comes with an IP66 rating, offering enhanced versatility for exterior applications.
- In August 2023, Signify Holding announced the opening of its largest LED lighting manufacturing site in the world in Jiujiang, Jiangxi Province, China. The new factory is expected to boost Signify's growth in China and across the world..
- In January 2022, Signify introduced an innovative lineup of Philips Hue smart lighting products tailored to craft optimal atmospheres both indoors and outdoors within residential settings. This collection features novel outdoor wall and bollard lights, alongside additional effects incorporated into the Philips Hue app, elevating the ambiance for various home occasions. The latest offerings comprise four gradient-enabled products, white ambiance filament bulbs, enhanced smart bulbs, and newly introduced bathroom and ceiling lights. Notably, the Philips Hue app has been updated to include a pioneering integration of lighting and music, specifically with Spotify, enhancing the overall smart lighting experience.
Frequently Asked Questions (FAQs):
Which are the major companies in the LED lighting market? What are their key strategies to strengthen their market presence?
The major companies in the LED lighting market are – Signify Holding (Netherlands), Acuity Brands, Inc. (US), Cree Lighting USA LLC (US), ams OSRAM AG (Germany), LG Electronics (South Korea), Dialight (UK), Panasonic Corporation (Japan), Hubbell (US), Savant Systems, Inc. (US), and Zumtobel Group (Germany). The major strategies adopted by these players are product launches, acquisitions, partnerships, and expansions.
What are the new opportunities for emerging players in the LED lighting market?
Emerging players in the lighting market are presented with significant opportunities to capitalize on evolving trends and industry dynamics. The increasing global focus on sustainability and energy efficiency positions these players to innovate and offer environmentally friendly lighting solutions. As technology continues to advance, particularly in areas like smart lighting and Internet of Things (IoT) integration, there is ample room for emerging players to bring fresh and cutting-edge products to market.
Which application is likely to drive the LED lighting market growth in the next five years?
The outdoor segment of the market is anticipated to exhibit a higher CAGR due to the rising adoption of energy-efficient lighting systems in various outdoor projects. These projects encompass street and road lighting, tunnel lighting, floodlighting, as well as lighting for stadiums and sports complexes.
Which region will likely offer lucrative growth for the LED lighting market by 2029?
Rapid urbanization, population growth, and burgeoning infrastructure projects in countries like China and India are driving substantial demand for lighting solutions across residential, commercial, and industrial sectors. Government initiatives promoting energy efficiency, sustainability, and smart city projects further propel the adoption of advanced lighting technologies in the region. Moreover, the increasing purchasing power, coupled with a growing awareness of the benefits of LED technology, positions Asia Pacific as a lucrative market for lighting manufacturers.
Which factors are expected to boost the LED lighting market in the next 5-6 years?
LED lighting market is expected to witness significant growth, driven by an uptrend in the deployment of smart lighting systems across a multitude of applications, the accelerated uptake of LED bulbs and luminaires in pursuit of the net-zero emissions target by 2050, an increasing demand for LED lighting in residential interior design and decoration, and the continuous introduction of novel LED products, propelled by ongoing technological innovation, and favourable government initiatives and regulations for energy efficient LED lighting solutions across the world among others.
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This research elucidates the approach used to compile this report on the LED Lighting Market. The study employs two fundamental information sources, secondary and primary sources, which collectively provide a comprehensive, technical, and commercial analysis of the LED Lighting Market. Secondary sources encompass data derived from sources like company websites, publications, industry associations, and databases such as OneSource, Factiva, and Bloomberg. Additionally, primary sources were tapped, including insights from key opinion leaders spanning various sectors, experts from governmental entities and associations, preferred suppliers, LED Lighting manufacturers, distributors, technology experts, subject matter specialists (SMEs), C-level executives of prominent firms, and industry consultants. These interviews were instrumental in acquiring, validating, and comprehending crucial information and in gauging the future prospects and trends within the LED Lighting Market. Key market players were identified through secondary research, and their market positioning was assessed via a combination of primary and secondary research methods. Furthermore, this research integrated an examination of the annual reports of market participants to pinpoint the leading players in the LED Lighting Market.
Secondary Research
In the secondary research phase, we referred to a variety of secondary sources to identify and collect pertinent information for this LED Lighting Market study. These secondary sources encompassed materials such as companies' annual reports, press releases, and investor presentations, as well as white papers, accredited publications, and articles authored by recognized experts. We also consulted directories and databases. The global size of the LED Lighting Market was determined through secondary data obtained from both paid and freely available sources. This involved evaluating the product portfolios of leading companies and assessing the quality of their offerings. The secondary research process was instrumental in gathering essential data related to the industry's supply chain, the financial aspects of the market, the total count of major market players, and the segmentation of the market in alignment with industry trends down to the most granular level, including geographic markets. Furthermore, this phase allowed for the identification and examination of industry trends and significant developments from both market and technology perspectives.
Primary Research
In the primary research phase, we conducted interviews with a range of primary sources to acquire both qualitative and quantitative data concerning the market in four primary regions: Asia Pacific, North America, Europe, and RoW (comprising the Middle East, Africa, and South America). On the supply side, primary sources included industry experts occupying various roles such as CEOs, vice presidents, marketing directors, technology directors, and other key executives from major companies and organizations operating within the LED Lighting Market or closely related sectors. This primary research was instrumental in gathering, verifying, and validating critical data that had been sourced from other channels following the market engineering phase.
Primary research also served to identify various market segments, industry trends, key players, the competitive landscape, and the pivotal market dynamics, encompassing factors such as drivers, constraints, opportunities, and challenges, as well as the key strategies adopted by market players. The majority of the primary interviews focused on engaging with the supply side of the market, and the collection of this primary data was carried out through questionnaires, email correspondence, and telephonic interviews.
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Market Size Estimation
The market engineering process extensively employed both top-down and bottom-up approaches. Additionally, a range of data triangulation methods played a crucial role in conducting market forecasting and estimating values for both the overall market segments and their sub-segments, as detailed in the report. To extract vital insights throughout the report, multiple qualitative and quantitative analyses were executed within the market engineering process.
In the identification of key players within the LED Lighting Market, secondary research was instrumental. The revenues generated by these key players were determined through a combination of primary and secondary research methods. Their revenue figures were further dissected by geographical regions and market segments, leveraging financial statements and an analysis of the annual reports released by these prominent market players. Interviews with CEOs, VPs, directors, and marketing executives were also conducted to enrich our understanding of the key players and their role in the LED Lighting Market. Market shares, a critical aspect of the analysis, were estimated using a blend of secondary and primary research. This data was then consolidated, enhanced with comprehensive insights and analysis provided by MarketsandMarkets, and is presented in this report.
Global LED Lighting Market Size: Bottom-Up Approach
Global LED Lighting Market Size: Top-Down Approach
Data Triangulation
Following the determination of the comprehensive market size through the previously described market size estimation process, the entire market was subsequently divided into multiple segments and sub-segments. To accomplish this and attain precise statistical data for all segments and sub-segments, the market engineering process employed a data triangulation method. This triangulation involved a thorough examination of diverse factors and trends originating from both the demand and supply aspects of the market. In addition to this, the market's accuracy and reliability were substantiated through a combination of both top-down and bottom-up approaches.
Market Definition
A light-emitting diode (LED) is a semiconductor light source formed from a p–n junction diode. It emits light when a suitable voltage is applied across its leads. An LED lighting system is formed by integrating LED devices into a lamp to be used as a light bulb or light source in a lighting fixture. LED lighting solutions consist of high-efficiency fixtures and associated controls such as drivers and dimming switches, which adjust the lighting based on factors such as occupancy and daylight. LED lighting is increasingly implemented to control growing energy consumption in buildings and outdoor areas. Robust development is expected in smart lighting technology that involves the extensive use of LEDs and smart electronic components, such as sensors, and other semiconductor components.
Stakeholders
- Raw material and wafer suppliers
- System integrators
- LED component manufacturers
- Original equipment manufacturers (OEMs)
- Integrated device manufacturers (IDMs)
- Original design manufacturers (ODMs)
- IoT components, AI-based services, and software providers
- Assembling, testing, and packaging services providers
- Suppliers and distributors
- Governments and other regulatory bodies
- Research institutes and organizations
- Market research and consulting firms
Study Objectives
- To describe and forecast the size of the LED lighting market based on product type, application, installation, sales channel, and region, in terms of value
- To forecast the size of the LED lighting market based on installation and sales channel segments, in terms of value
- To forecast the size of the LED lighting market based on product type, in terms of volume
- To describe and forecast the market for four main regions, namely, the Americas, Asia Pacific, Europe, and Rest of the World (RoW), in terms of value
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
- To provide a detailed overview of the value chain of the LED lighting ecosystem, along with the average selling prices of product types
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contributions to the overall market
- To strategically analyze the ecosystem, Porter’s five forces, regulations, patent landscape, trade landscape, and case studies pertaining to the market under study
- To analyze opportunities in the market for the stakeholders by identifying high-growth segments in the market
- To strategically profile the key players and provide a detailed competitive landscape of the LED lighting market
- To analyze strategic approaches adopted by the leading players in the LED lighting market, including product launches/developments/collaborations/partnerships/expansions, and mergers & acquisitions
Available Customizations:
With the given market data, MarketsandMarkets offers customizations based on the specific requirements of companies. The following customization options are available for the report:
Company Information
- Market size based on different subsegments of the LED Lighting Market
- Detailed analysis and profiling of additional market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in LED Lighting Market
I would like to know the total LED lighting market sector in South Africa. If possible in Rand value as well as percentage. Looking forward to your quick response.
Being in lighting field since more than 48 years interested to get more information which can help me in my role as consultant to lighting industry. Please let me know what all new trends, applications, technologies have been included in this report?
Hi. I am writing a story for the media on railroad industry adoption of LED lighting. I am hoping to ask an industry analyst a question and use the quote for my story, which will be placed with targeted news media. Should only take a few minutes, but can really use an expert. Thank you.
What product types make up the total lighting retrofit market by percentage (i.e. linear fixtures, downlighting, high bay, low bay, etc). Please elaborate.
We are a LED manufacturer based in Egypt, need to know how to compete with the Chinese companies in terms of pricing and exporting our products to other countries?
My specific interest id LED Lighting Market by Installation Type (New Installation and Retrofit Installation) in North America and Asia Pacific. Do you provide quantitative analysis for these 2 regions only?
I provide financing solutions for all types of energy efficiency projects, with a focus on LED lighting retrofits. Please let me know how I may be benefitted out of this report?
What would the pricing for all quantitative tables related to Asia Pacific regions and top company profiles in this region?
We are the manufacturer of LED lights, we are looking for the information on LED panel lights, LED downlights, LED track lights, LED linear lights, and LED Strips. Do you have any specific study on this?
I am doing my final thesis of the masters in LED lighitng. I am interested in this report, what would the best price for this? Thank you very much in advance.
Our interest is in the international LED High Bay market and the adoption of smart technologies such as sensors.
I am interested in Europre LED lighting market and want to understand, what is the current market size in Italy, France, Germany and UK in the European Market? What is the penetration of LED in the overall lighting in these countries?
I am interested to know how is the competition among the system integrators within LED lighting industry? Does the report include market stategies adopted by major players within the ecosystem to get competitive edge in the market?
Would like to understand the market potential for LED lighting in rural parts of India? Do you have such information qualitative or quantitative?
I am looking for the potential of LED Lighting across different indoor and outdoor applications. Does the report provide this information across prominent countries in all the regions?
I am looking to do business as a LED Lighting distributor. This is a completely new venture for me and I will love to receive more insight on what I need to do to becoming a distributor/marketer of this product. I look forward to receiving your response. Thanks.