Emergency Lighting Market Size, Share & COVID-19 Impact Analysis, By Light Type (Fluorescent, LED, Incandescent, and Others), By Battery Type (Lithium, Nickel Cadmium, Nickel Metal Hydride, and Lead–Acid), By Power System (Self-Contained and Central Powered), By End-user (Residential, Commercial, and Industrial), and Regional Forecasts, 2023-2030

The global emergency lighting market size was valued at USD 6.39 billion in 2022 and is projected to reach USD 13.05 billion by 2030 from USD 7.02 billion in 2023, growing at a CAGR of 9.3% during the forecast period. Emergency lighting systems are emergency lamps placed in buildings, homes, workplaces, and study rooms to overcome unexpected power failures, which turn on automatically when the power supply gets off.

Furthermore, it is a lifeline in hazardous situations as it helps in reducing panic, delivering essential illumination, and guiding the occupants of a building toward safe exit points. The installation and maintenance of emergency lighting is crucial in ensuring the safety of occupants and is a legal imperative in most countries. The right area lighting provides a uniform lighting experience for large spaces to increase safety. 

COVID-19 IMPACT

COVID-19 Pandemic Caused Decrease in Demand for Energy in Commercial and Industrial Sector

COVID-19 spread rapidly everywhere in the world in 2020. Almost every country reported infected cases. From 2020 to 2021, every country was at different stages of the pandemic. The industrial participants witnessed challenges due to lockdowns. The outbreak of COVID-19 across the globe in 2020 hampered the emergency lighting market growth.

COVID-19 has affected the market growth due to sudden shutdowns in the commercial and industrial sectors. During the lockdown, 89% of Lighting Industry Association (LIA) members said their businesses stayed open and 95% of their sales were restored, according to LIA. However, lack of raw materials for the manufacture of lamp housings, chips, and other factors hampered the light supply and demand for lamps. This is due to the rising adoption of residential lighting fixtures, which has offset the impact of COVID-19 on the market growth.

LATEST TRENDS

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Adoption of Better Safety Standards and Incorporation of Smart Technologies to Aid Market Proliferation

The adoption of better safety standards and the incorporation of smart technologies in the lighting industry are expected to create various new opportunities during the forecast period. In addition, government laws and policies such as ban on the use of incandescent bulbs and the energy efficient nature of LEDs are increasing the usage of LEDs. Additionally, LEDs are highly controllable as the integrity of LEDs can vary based on demand when integrated into a driver.

For example, the Australian Government Council Energy Ministers announced plans to replace halogen lamps with LED lamps to improve energy efficiency.

Other important factors driving the market size across the key regions are the growing popularity of smart homes, increasing government initiatives for smart city development in India, China, the U.S., and Thailand, and increasing government support for LED light adoption in India and Japan.

In addition, rising infrastructure spending in major countries, such as China and India, is boosting the global market growth. Additionally, increasing consumer awareness of energy-efficient lighting solutions due to rising electricity tariffs is a crucial driver of global sales.

DRIVING FACTORS

Easy Availability of Cost-effective and Attractive Lights to Push Market Growth

The ease of accessibility to low-cost and attractive luminaires is expected to impact the market share positively during the forecast period. Additionally, the combination of emergency lighting with aesthetic lighting and technological advancements in the lighting industry is expected to expand the market share. Furthermore, the falling average selling price of LEDs and the global upswing in the construction industry should also have a positive impact on market growth.

Additionally, technological advancements in the lighting industry also drive market growth. Technological progress is necessary for the sustainability of any technology. Companies involved in manufacturing invest heavily in Research & Development (R&D) to improve the performance as well as the longevity of their products. Incorporating LEDs in exit signs is one of the most significant technological advances. Such lights are more energy-efficient and cheaper than traditional light sources. With the increasing adoption of green and red residential exit signs, companies are focusing on expanding their portfolio of such residential products

Rapid Urbanization and Improved Living Standards to Boost Product Demand

Rapid urbanization in various countries and improved living standards are also expected to create a massive demand and push the growth of the market. Further, the rising construction of houses is driving emergency light usage in residential applications. For instance, in 2020, the residential category accounted for the largest size in the industry based on application. This is due to the increasing construction of residential buildings and apartments in Asia Pacific and the Middle East & Africa (MEA) regions. China and India mainly generate the demand in the Asia Pacific region due to power outage problems combined with rapid economic growth in these countries.

Additionally, the increasing adoption of the lighting system in the aviation sector is another critical factor driving market expansion. Rising awareness of such solutions among airline companies is leading to a high acceptance of emergency lighting solutions. In addition, falling prices are driving product demand as airlines seek to reduce their one-time costs of installing such components.

RESTRAINING FACTORS

Challenges to Set-up New Manufacturing Hubs are Restraining the Market Growth

Manufacturers along with investors face challenges in several countries, mainly due to strict government policies, including rules and regulations related to environmental measures. Furthermore, at the start of any emergency lighting design, relevant information about the premises must be obtained from either a drawing or a site survey, and obtaining this information correctly can result in a poor emergency lighting design system. These factors are restraining the market share in developing countries.

The increasing introduction of products in various applications is forcing governments to work on the guidelines for companies in their respective countries. The time required to set up new manufacturing centers will slow down the growth of the market in the coming years.

SEGMENTATION

By Light Type Analysis

LED Sub-Segment to Capture Leading Market Share Due to Increased Adoption to Save Energy

The market has been segmented based on light type into fluorescent, LED, incandescent, and others. The LED segment holds the dominant market share due to its widespread adoption to save energy. Using LED emergency light bulbs often results in energy savings of 30% compared to normal bulbs. Furthermore, LED lights don’t rely on burning a filament, so there are minimum possibilities of wear and tear. LED lights are highly robust, have excellent low-temperature performance, and are easily digitally controlled. This form of lighting is also space-efficient. The light sources can be much more focused on their exact purpose, leading to significant savings over the installation’s life. LED lights rely on their dedicated optics, drivers, and fittings, allowing for sleek, unobtrusive luminaire designs.

The fluorescent segment also holds a significant market share as it has various advantages over traditional lighting alternatives, such as incandescent, as they are more durable. On an average, the lifespan of a lightbulb or tube is six times longer than that of a normal incandescent lamp. They tend to burn less after continuous use and can be turned off or on without fear of aging. Fluorescent lighting is also cheaper than regular lighting while providing the same brightness.

By Battery Type Analysis

Lithium Segment to Hold the Dominant Market Share Due to its Charge Efficiency and Long Life

Based on battery type, the market is segmented into lithium, nickel cadmium, nickel metal hydride, and lead-acid. The lithium segment holds the dominant market share due to its charge efficiency and long life. Additionally, rechargeable batteries lose charge over time, but with lithium batteries, the rate is only 3-5% per month. The charger in a lithium circuit works at low current in short and infrequent bursts. Moreover, lithium batteries have little memory effect, so their performance remains almost constant till they reach the end of life, usually defined as 70% of rated capacity.

The nickel-cadmium segment also holds a significant market share as they are more resistant to temperature extremes so that they can be used in a broader range of environments. They have a higher power density, thus they can store more energy per unit of weight when compared to lead-acid batteries.

By Power System Analysis

Self-contained Segment Dominates the Market Owing to its Favorable Features

Based on power system, the market is segmented into self-contained and central-powered. The self-contained segment holds the dominant market share as it offers the simplest and fastest solution, contains its batteries, and works independently. They take less time to install, are easy to expand or change later, and are typically the most cost-effective solution for small to medium-sized projects. Installation costs are relatively low as no special wiring is required. They offer greater system integrity as each light is independent of the others, eliminating the need for dedicated sub-circuit monitoring.

Furthermore, central-powered emergency lighting systems are normally used for large projects where the number of emergency luminaires is high, for example, a large multi-story office block. Central-powered systems would be the best option to keep ongoing operational costs at a minimum as the battery life in a central-powered system is maximized and is usually at least 10 years. These systems are simpler to test and maintain, provide completely unobtrusive emergency lighting, and offer long-term cost advantages.

By End-user Analysis

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Residential Segment to Hold the Dominant Market Share Owing to Increasing Demand for New Products at Regular Intervals

By end-user, the residential segment is anticipated to dominate the market, owing to increasing demand for new products at regular intervals. However, light manufacturing companies focus on developing new LEDs that consume less electricity and provide maximum output with long durability. The commercial segment will likely hold the second largest market share, followed by the industrial segment. Factors, such as the increasing number of commercial buildings, public infrastructure, and others, are influencing the growth rate of the commercial segment.

REGIONAL INSIGHTS

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The North America market holds the dominant emergency lighting market share and is expected to grow at a considerable rate. This is due to the presence of several large companies in the region. Several unregistered market participants are involved in this sector. The market in this region is fragmented compared to other regions. Increasing urbanization, the introduction of innovative technologies, energy-efficient products, and a growing and aging population are the key factors affecting market growth in North America. Therefore, North America will dominate the market in the coming years.

In the Asia Pacific region, China holds the largest market share due to the presence of several large suppliers. China has evolved itself as a major exporter of products to other countries in recent years. The growing population also contributes to the growth of the regional market.

The market in Europe is expected to grow with the introduction of new technologies such as intelligent systems and human-centric systems. For example, to offer consumers energy-efficient products, the European Commission published new eco-design rules for industry in December 2019. In addition, the construction of smart cities is boosting the LED market in the region.

In the Middle East and Africa region, governments of Saudi Arabia, the United Arab Emirates, and Qatar are constantly working to improve their infrastructure through huge investments. These governments' favorable policies allow companies to offer their products with reasonable pricing with tax rebates.

Furthermore, Latin America is expected to grow significantly with the slow adoption of technologies across the region. Moreover, a few light manufacturers are present in Latin America, affecting the region's market growth.

KEY INDUSTRY PLAYERS

Key Participants are Concentrating on Enhancing their Product Capacities

The market for emergency lighting is highly fragmented, with the presence of numerous players. The competitive landscape of the present companies in the market has a strong foothold in their base country and region. Schneider Electric, Honeywell, and Eaton are the leading players with a strong presence across different countries. Their operational plants' success will help them acquire contracts and have a considerable market share in the coming years.

In 2021, Schneider Electric held the largest share of the market. Orient, Wipro, Zumtobel, and Eaton are the other key players operating in the market.

LIST OF KEY COMPNIES PROFILED:

• Schneider Electric SE (France)


• Emerson (U.S.)


• Legrand SA (France)


• Hubbell Lighting Inc. (U.S.)


• Panasonic Corporation (Japan)


• Philips Lighting Holding B.V. (Netherlands)


• General Electric (U.S.)


• Zumtobel Group (Austria)


• Acuity Brands (U.S.)


• Orient Electric (India)


• Wipro (India)


• Honeywell HBT (U.S.)


• Eaton Corporation (Ireland)

KEY INDUSTRY DEVELOPMENTS:

• November 2021 - Schneider Electric has won the ‘Outstanding Contribution to Sustainability and Efficiency’ category at the DCS Awards. During the event, Schneider Electric and Elite Partners Advanced Power Technology secured a second special project award for the ‘Sustainability in the Data Center Project of the Year category. Together, the companies delivered a modernization project for Newcastle City Council, using energy-efficient technologies to reduce its carbon footprint as part of a wider digital transformation initiative.


• April 2021 - Schneider Electric, a leader in the digital transformation of energy management and automation, launched the Zero Carbon Project. Under the new initiative, the company will work with its top 1,000 suppliers who account for 70% of Schneider's carbon emissions to cut the carbon emissions of their operations by 50% by 2025. The initiative is part of Schneider's Sustainable Development Goals for 2021-2025. It is a concrete step toward limiting the increase in average global temperature to 1.5°C or less by 2100, as the Paris Agreement targets.


• February 2021 - Honeywell acquired the whole outstanding shares of Sparta Systems for USD 1,303 million. Sparta Systems is expected to further strengthen its position in industrial automation, digital transformation solutions and enterprise performance management software. The business is included within the Performance Materials and Technologies segment.


• February 2021 - Orient Electric targets smart lighting solutions to grow market share. Orient has launched a range of LED emergency lights which provide emergency light for up to 4 hours during power outages. The type of light includes an LED bulb, LED strip, LED recessed plate, and bulk head, which can be used as a normal light source and automatically switch to emergency mode to light up during power outages.


• October 2019 – Eaton Corporation entered into an agreement to sell its lighting business to Signify for USD 1.4 billion. The company’s business segment had sales of USD 1.7 billion in 2018, and served customers across commercial, industrial, and residential space.

REPORT COVERAGE

An Infographic Representation of Emergency Lighting Market

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The research report provides a detailed analysis of the market share and focuses on key aspects such as leading companies, types, and leading applications of the system. Besides this, the report offers insights into emergency lighting market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market growth in recent years.

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