LED Lighting Market Size, Share and Analysis

LED Lighting Market Size, Share & Growth

[271 Pages Report] The global LED lighting market is projected to increase from USD 78.9 billion in 2024 to USD 118.4 billion by 2029, registering a CAGR of 8.5% during the forecast period. Various factors contribute to the development of the LED lighting market. Among these, energy efficiency is the most significant driving force. Compared to traditional lighting solutions, LED technology significantly reduces energy consumption. LEDs' environmental implications are another consideration factor that influences consumer and business acceptance. Also, the advancement of technology and low production costs have made it more affordable and flexible; hence, increasing its demand in the marketplace.

LED Lighting Market Forecast to 2029

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LED Lighting Market Dynamics:

Driver: Increasing use of smart lighting systems

Advancement in technology through the use of the Internet of Things (IoT) has expanded the use of LED technology to the next level. To keep energy conservation and operating costs / energy bills to a minimum, IoT-enabled luminaires, control units, and sensors are used to manage lighting systems. The use of loT allows such gadgets to operate independently, thereby making the whole environment smart and sustainable on a daily basis. Various smart sensors are incorporated into wireless communication devices in order to improve the efficiency and reliability of lighting control systems. Thus, smart LED lights can detect occupancy without incorporating cameras into their illumination system. There has been a significant increase in the number of players in the LED lighting market along with the introduction of new technologies that have revolutionized the market. As a result, many users are switching from conventional lighting to smart or LED lighting or connected lighting. The continued reduction in the size of sensors and controllers has allowed OEMs to integrate sensors and controllers into luminaries. Unlike a centralized lighting system, this approach does not require wiring or control panels. With this system, lighting systems can be established quickly, efficiently, and with fewer resources, particularly for new and retrofitted installations.

Restraint: Functional problems associated with LED technology

Even though LED technology provides numerous advantages, there are a number of functional problems and challenges associated with it. Generally, LEDs produce heat, and if this heat is not managed effectively, it is likely to have an adverse effect on their performance and lifespan. Overheating results in color shifting, reduced brightness, and a shorter overall lifespan. In order to mitigate this problem, adequate heat sinks and thermal management systems are essential. Color consistency can be challenging across different LED products and over time. Variations in color temperature and color rendering can affect the quality of lighting and make it difficult for colors to be accurately matched, especially in commercial or industrial settings. However, despite the advancements in LED technology with regard to color rendering, there is still a problem with LEDs not being able to produce certain colors accurately. This continues to impact the overall quality of light. This means that the Color Rendering Index (CRI) has problems. This challenge is being met due to improvements in phosphor technology and advances in color-mixing methodologies. In addition, LED drivers that regulate AC supply voltage to DC voltage suitable for LEDs have problems with power quality including harmonics and electromagnetic interference. Other appliances connected to the same electrical circuit might be affected by these problems. The same inability to adhere to set schedules or standards has also affected the quality of power provided.

Opportunity: Rising adoption of LED lighting in horticulture sector

There are many benefits associated with LED lighting that allow it to offer the best result for plant well-being and productivity in horticulture. In controlled environment agriculture systems, such as greenhouses and vertical farms, LED lighting is used either as a complementary or substitute light source to natural light. LEDs also have the advantage of consuming little energy, which translates into lower electricity costs. In this comparison, this advantage is clearly apparent. As well, LEDs have a longer life than other lighting sources, so they do not require frequent replacements. By reducing energy costs in this manner, LED lighting is a good investment for growers seeking to enhance their productivity. The LED technology allows farmers to regulate the wavelength of light required for each plant and growth stage. Furthermore, it is used to regulate aspects of plant growth such as flowering, fruiting, and even the overall health of the plant. When it comes to efficiency, LED lights are very efficient, since they can use more energy to produce the intensity of light that plants require to grow. As compared to traditional light sources, LED illumination consumes relatively less power, which further confirms that it can be used for indoor farming systems and is relatively inexpensive to operate.

Challenge: Lack of common open standards for LED lighting

A significant challenge of the LED lighting industry deals with the deficiency of common open standards for LEDs. A standard set of common open standards ensures interoperability, compatibility, and communication among various devices and systems without leaving behind any gap or complication. Lack of standard communication protocol leads to problems of interoperability. Manufacturing companies are developing proprietary protocols for use, resulting in failure to have any communication between the LED lighting products from different vendors. This reduces consumer choice and creates additional complexities in building automation system construction. Proprietary protocols and the closed nature of the systems lead to vendor lock-in. Consumers do not have the freedom to select anything they prefer but must rely upon the products and technologies from particular manufacturers. This lack of flexibility does not allow for a substantial amount of innovation and denies consumers the possibility of choosing the best suitable solutions for their needs. Building automation systems typically include an integration of a number of devices and systems such as lighting, HVAC, security, and so on. Without common open standards, integration between other building automation components and LED lighting is more complicated and expensive. Common open standards enable plug-and-play functionality in the sense that devices work together very seamlessly without more configuration. Without such standards, much more manual configuration and troubleshooting are required during the installation and integration process. In addition, smart lighting solutions often rely on standardized communication protocols that make effective control and automation possible. Without common open standards, the take-off of smart lighting systems is hindered, as consumers and businesses are hesitant to invest in such technologies due to a lack of interoperability as well as the prospect of obsolescence.

LED lighting Market Ecosystem

In the LED lighting industry, there are several major, financially sound companies. Companies in this sector have been operating on the market for several years and possess a comprehensive portfolio of LED lighting suitable for 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).

Luminaire segment is likely to exhibit highest growth rate during the forecast period

The luminaire product segment appears to hold the most potential for high growth. Due to the growing population of people in urban areas, luminaires are expected to become more popular due to the need for better and more efficient lighting systems in homes and offices. Also, the implementation of innovations and technologies, for instance, LEDs which consume less energy, appeal to eco-conscious consumers. The smart home and Internet of Things are also increasingly integrated; therefore, modern lighting systems with convenience and flexibility are characterized by intelligent, modern lighting systems. The rising awareness of energy conservation and sustainability in lighting has contributed to the use of smart luminaire products especially those with integrated LED. With technological advancements in connected and smart luminaires picking up steam, this segment will continue to grow. There are several benefits that connected and smart luminaires offer, including high energy efficiency since the luminaires' control and timing can be set automatically. Compared to previous light configurations, these offer more flexibility since users can set their preferred light range. Moreover, these intelligent systems can interact with other smart home appliances to create a completely smart based home environment. Some of the factors that make luminaires favored include ease of use, availability in a wide variety and designs to suit lighting requirements together.

The retail segment is expected to have the largest market share during the forecast period

The retail segment is expected to have the largest market share during the forecast period. Among consumers, this segment stands out due to its relatively low prices, wide range of products, and ease of accessibility. As retailers profit from economies of scale, they can offer their products at cheaper prices, while consumers can get all their needs at one location. Also, a better transportation and delivery system enhances shopping convenience and makes it easier to do. In addition to the availability of numerous retail outlets, this option also offers advantages such as high-quality products, on-site control, and quick access to products. These factors have contributed to the growth of this segment. Generally, products are sold through retailers, dealers, or affiliates. The locational advantage of such channel partners typically helps them achieve lower costs to reach customers in their markets. In retail/wholesale, customer service, for instance, plays a critical role in customer satisfaction, which determines customers' loyalty. Providing excellent customer service ensures that consumers are satisfied with their shopping experience, especially when they are making inquiries, making purchases or complaining. As a result, retailers ensure that their customers' problems are solved as and when they arise, which ultimately makes them more loyal.

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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LED Lighting Market in India is expected to be the fastest growing market during the forecast period. Current statistics reveal that LED lighting is the most commonly used artificial lighting in the country and has gained more popularity as compared to other varieties of traditional lighting such as incandescent bulbs, CFLs, fluorescent lamps, high-pressure sodium lamps and also metal halide lamps. The increase in the adoption of LED lighting has been on a sharp rise in the past years where most of the households and commercial buildings in India are now using LEDs. High efficacy, a longer life cycle, and reduced maintenance costs are some of the causes for the growth of the LED lighting market in India. Further, the government supports the use of LED lighting through policies and subsidies for the consumption of energy-efficient products. In the near future, higher LED lighting applications should catalyze further technological advancements of the LED lighting industry throughout the world. 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. 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 market.

Scope of the LED Lighting Market Report

LED Lighting Market Highlights

In this report, the LED Lighting Market has been segmented into the following categories:

Recent Developments

• In November 2023, ams-OSRAM AG expanded the OSTAR Projection Compact family of ultra-bright LED projectors. The introduction of red, true green, and blue colors into the family line enables manufacturers of machine vision systems or stage lighting fixtures to create more powerful and elegant products.
• In September 2023, Advanced Lighting Technologies, LLC announced that its affiliate, CLNA Holdings LLC, has acquired all of the equity interests of CREE LIGHTING USA, CREE LIGHTING CANADA CORP. and E-CONOLIGHT LLC (together “Cree Lighting”) from IDEAL INDUSTRIES, INC., and IDEAL INDUSTRIES (CANADA), CORP. This acquisition will strengthen the company’s product portfolio in LED lighting space.
• In September 2023, A-Light, a part of Acuity Brands, launched the Lino luminaire. This linear fixture has received its minimum IP rating of 66 thus giving it increased versatility especially when used in exterior settings.
• In August 2023, Signify Holding opened the largest LED lighting manufacturing facility in the world in Jiujiang, Jiangxi Province, China. It is expected that Signify's Chinese and international growth will be revitalized by this new factory.
• In January 2022, Signify launched a Philips Hue smart lighting portfolio built for creating perfect indoor and outdoor moods within a residential environment. This collection unveils new outdoor wall and bollard lights, as well as other effects that have been integrated into the Philips Hue application to enhance the mood for different home events. The new products include four gradient products, white ambiance filament bulbs, improved smart bulbs, and newly introduced bathroom and ceiling lights. Also, the Philips Hue has recently received an app update that contains a groundbreaking new feature – synchronization of lights with music, more specifically, the Spotify service, thus enriching the overall smart lighting concept.

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