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Lighting Market Size, Share & COVID-19 Impact Analysis, By Lighting Type (LED, CFL, LFL, HIDs, Halogen, and Incandescent), By Application (General Lighting, Automotive Lighting, Backlighting, and Others), By End User (Residential, Commercial, and Industrial), and Regional Forecasts, 2023-2030

Last Updated: June 24, 2024 | Format: PDF | Report ID: FBI101542



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The lighting market size was valued at USD 122.03 billion in 2022 and is projected to grow from USD 125.48 billion in 2023 to USD 169.44 billion by 2030, exhibiting a CAGR of 4.4% during the forecast period. Asia Pacific dominated the global market with a share of 47.17% in 2022.

Light plays an important role in every sector. The applications of light in activities, such as interior designing, photography, and other uses, are rising with the increase in population. Numerous scientists have indicated the usage of LEDs in growing plants through practical evidence. Demand for LED light plays an important role in plant growth and development, as it converts electricity into light by using the properties of metals, thereby delivering white light. Governments in several countries across the world are focusing on implementing regulations on energy-efficient products.

According to the European Commission, lights account for 15% - 18% of electricity consumption, globally. Furthermore, over the past few decades, the industry has witnessed the integration of concepts such as artificial intelligence and the Internet of Things (IoT). The use of these concepts has allowed light manufacturing companies to develop innovative products.

The demand has risen in developing countries owing to the increasing population, climate change, and resource scarcity. Governments in developing countries such as India and China are focused on developing new houses for homeless people, which, in turn, is driving the lights market growth in the region. Moreover, companies in this sector are more inclined toward producing and selling lights (LEDS and CFLs) at minimum rates, so that people can afford and use them for a long period.


Instant Shutdown in Manufacturing Units due to COVID-19 Impacted the Growth of Commercial Sector

The COVID-19 pandemic slightly affected the growth of the market owing to the immediate shutdowns in the commercial sector and industries such as automotive and retail. According to a survey conducted by the Lighting Industry Association (LIA) during the lockdown period, 89% of LIA’s members reported that their business remained open and recovered 95% of their sales. However, lack of availability of raw materials for manufacturing light casings, chips, and other factors affected the supply and demand for the lights.

The growth of this market was expected to remain constant during the lockdown period. This was attributable to the increasing adoption of lights in the residential sector, which balanced the impact of COVID-19 on the growth of the market. Immediate lockdown forced people to work from home, which, in turn, increased the adoption in the residential sector. However, the market was anticipated to witness moderate growth in the coming years.


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Rising Adoption of Solar in Developing and Under-Developing Nations to Aid Market Growth

The off-grid solar sector is growing significantly, as it is more energy efficient and provides Pay-As-You-Go (PAYGO) enabled products. Since the past few years, the application of LEDs in the solar system has increased dramatically with a potential to serve millions of users around the world. According to a report published by the Lights Global (a program initiated by the World Bank), in 2020, the global off-grid solar sector market size is USD 1.75 billion with 420 million users. Moreover, off-grid solar has a potential of serving 1.8 billion people and 70 million farmers, globally.

The report also states, currently 840 million people do not have access to electricity, which is affecting the growth of diverse markets across the globe. The increasing adoption of solar enabled lights will create a massive growth platform for several companies in this sector. Many users in developed and developing nations are adopting such technology, which is resulting in saving cost, time, and extra investments.


Demand for Artificial Lightings in the Construction Industry is Driving Market Growth

The rise of the construction industry has opened up a massive potential to drive the market growth. This growth is attributable to the rising government initiatives across the world to provide accommodation to the homeless people; an activity that requires light equipment. In construction activities, artificial light allows workers to complete the task on time. Also, these are used for safety purposes that can help identify the danger and highlight the area where the work is in process. The construction industry is growing significantly in developing regions such as Asia Pacific, Latin America, and the Middle East and Africa.

Moreover, luminaire and light control systems are predominantly driven by new installations. Besides this, the luminaire and light control systems market is directly linked with the growing construction industry and the GDP of each country.


Constraints in Setting up Newer Manufacturing Hubs is Hindering the Market Growth

Investors are facing issues while setting up newer light manufacturing hubs in several countries, mainly due to the strict government policies which include the rules and regulations related to environmental actions. There are several other challenges that investors or manufacturers face before setting up a factory, such as high capital costs, high investments in the R&D sector, inefficient supply of raw materials, logistics inefficiency, and lack of availability of advanced manufacturing equipment. These factors are restraining the growth of this market in developing countries. The increasing adoption of products in diverse applications is compelling governments to work on the policies associated with business operations in their respective countries. The time required to set up newer manufacturing hubs will hamper the growth of the market in the coming years.


By Lighting Type Analysis

LED Segment is Projected to Grow at the Highest CAGR due to Low Cost

Based on lighting type, the market is segmented into LED, CFL, LFL, HID, halogen, and incandescent. The LED segment is expected to grow at a highest CAGR over the forecast period. The growth of this segment is attributable to increasing applications, low costs, and durability of LEDS. LEDs offer brighter light with less consumption of electricity.

Several manufacturers have shifted from CFLs to LEDs over the past decade. The price of LEDs is also low as compared to other lights owing to their low maintenance cost and easily manageable fitting processes.

By Application Analysis

General Lighting Segment to Dominate the Lights Industry Owing to Surge in Construction Projects

On the basis of application, the market is divided into general lighting, automotive lighting, backlighting, and others. The general lighting segment accounts for almost 80% of the total light industry due to increasing residential and commercial construction projects, which increases the use of these systems. This is followed by the automotive light segment in the market. In the automotive sector, car manufacturing companies are focused on deploying LEDs and halogens in headlights for providing better visual quality to the driver.

Therefore, the adoption of innovative lights technology in the automotive sector is driving the growth of the automotive lighting segment.

By End User Analysis

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Residential Segment is Expected to Hold the Largest Market Share Owing to the Adoption of Smart LED Lights

By end user, the market is classified into residential, commercial, and industrial. The residential segment is anticipated to dominate the market, owing to increasing demand for new products at regular intervals. However, light manufacturing companies are more focused on developing new LEDs that consume less electricity and provide maximum output with long durability.

The commercial segment is likely to hold the second largest market share followed by the industrial segment. Increasing number of commercial buildings, public infrastructure, and others is influencing the growth rate of the commercial segment.


Asia Pacific Lighting Market Size, 2022 (USD billion)

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The market in Asia Pacific was worth USD 57.56 billion in 2022 and is expected to dominate in the lighting market share in the coming years. There are multiple registered and unregistered market key players that are involved in this sector. In Asia Pacific, China will hold the largest market share owing to the presence of several large scale vendors. China has established itself as a large-scale exporter of products to other countries over the past few years. The rapidly increasing population is another factor that has contributed to the growth of the regional market. Therefore, Asia Pacific is projected to dominate the market in the coming years, followed by Europe and North America.

In Asia Pacific, China holds the leading position in the market. It is one of the world's largest producers of lights products, including various types of bulbs, fixtures, and LED lights. China has developed a robust manufacturing infrastructure with advanced technologies and efficient production processes. The country has a large number of factories specializing in light production, which has helped it become a global manufacturing hub. Furthermore, rapid urbanization and increased infrastructure development in China have led to a surge in domestic demand for light products. The country's expanding middle class and increasing consumer spending power have also contributed to the growth of the lights industry.

The North America lighting market is anticipated to grow moderately. This is attributable to the presence of several large-scale companies in the region. The market in this region is fragmented as compared to other regions. Increasing urbanization, adoption of innovative technologies, energy-efficient products, and growing and aging population are the major factors influencing the growth of the market in North America.

The market In Europe is expected to grow significantly with the adoption of new technologies such as intelligent systems and human centric. For instance, to provide energy-efficient products to consumers, the European Commission has published new eco-design rules for the industry in December 2019. Furthermore, renovation of cities into smart cities is boosting the LED market in the region.

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In the Middle East & Africa, governments in Saudi Arabia, the UAE, and Qatar are working continuously to improve their infrastructure by making huge investments. The favorable policies of these governments are allowing light manufacturing companies to offer their products with reasonable pricing and durability to the customers. Furthermore, Latin America is expected to grow moderately owing to the slow adoption of technologies in the region. Moreover, there are less light manufacturing companies present in Latin America, which is also affecting the market growth in the region.


Koninklijke Philips N.V., Panasonic Corporation, and Cree, Inc. are More Focused on Increasing their Regional Presence

GE Lighting holds the largest market share in the global lights industry, followed by Koninklijke Philips N.V. and Cree, Inc. The production of various lights products with innovative technology is the primary reason behind holding the large market share among the other light manufacturing companies. Furthermore, Panasonic Corporation, OSRAM Licht SE, and Schneider Electric SE are working continuously on developing new products. Also, light manufacturing companies are investing more in their research and development departments to develop innovative products that consume less electricity and save costs.

List of Key Companies in Lighting Market:


  • February 2019 - Cree, Inc. introduced the next-generation ‘XLamp,' which is named as XP-E2 Photo Red (660nm) and Far Red (730nm). The newly launched product is especially developed to provide enhanced services in the horticulture sector. These horticulture LEDs increase the efficiency of LED luminaires and also shorten the payback period.

  • September 2019 - OSRAM launched new LiDAR (Light Detection and Ranging) lasers, which will be deployed in the autonomous vehicles. These new LiDARs will allow the driver to see farther with enhanced visioning experiences.

  • September 2022 – OSRAM, a global manufacturer of lights and related products, entered into a partnership with Continental AG, an automotive lights manufacturer company. With this partnership, Continental AG is using OSRAM lights in its automotive lights system.

  • January 2022 - Acuity Brands, Inc., a prominent industrial technology company, strengthened its partnership with Microsoft to introduce enhanced features to its smart lights, lights controls, and building automation solutions. Through this collaboration, Microsoft's Cloud for Sustainability and Microsoft Azure IoT joined forces with Acuity Brands' customer solutions. Together, Acuity Brands and Microsoft aim to empower end customers, who oversee various facilities and buildings, to predict and assess the environmental and financial effects generated by these innovative lights and building management technologies.

  • September 2022 - Signify, a global prominent player in lights, and Upciti, a proficient specialist in artificial intelligence and edge computing, have declared their intention to form a partnership. The objective of this collaboration is to assist cities and utilities in the U.S. and Canada in obtaining supplementary benefits, extending far beyond mere illumination, from their lights infrastructure.


An Infographic Representation of Lighting Market

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The report provides a detailed analysis of the global market and focuses on key aspects such as leading companies, product/service types, and leading end-use applications of the product. Besides this, the report offers insights into the market trends and highlights the 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.

Report Scope and Segmentation 



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 4.4% from 2023 to 2030


Value (USD Billion)


By Lighting Type

  • LED

  • CFL

  • LFL

  • HID

  • Halogen

  • Incandescent

By Application

  • General Lighting

  • Automotive Lighting

  • Backlighting

  • Others

By End User

  • Residential

  • Commercial

  • Industrial

By Region

  • North America (By Lighting Type, By Application, By End User, By Country)

    • U.S. (By End User)

    • Canada (By End User)

  • Europe (By Lighting Type, By Application, By End User, By Country)

    • Germany (By End User)

    • U.K. (By End User)

    • France (By End User)

    • Italy (By End User)

    • Spain (By End User)

    • Scandinavia (By End User)

    • Rest of Europe

  • Asia Pacific (By Lighting Type, By Application, By End User, By Country)

    • China (By End User)

    • India (By End User)

    • Japan (By End User)

    • Australia (By End User)

    • Southeast Asia (By End User)

    • Rest of Asia Pacific

  • Middle East & Africa (By Lighting Type, By Application, By End User, By Country)

    • GCC (By End User)

    • South Africa (By End User)

    • Rest of Middle East & Africa

  • Latin America (By Lighting Type, By Application, By End User, By Country)

    • Brazil (By End User)

    • Mexico (By End User)

    • Rest of Latin America

Frequently Asked Questions

Fortune Business Insights says that the market stood at USD 122.03 billion in 2022.

In 2030, the global market is expected to be valued at USD 169.44 billion.

The market is set to exhibit a CAGR of 4.4% during the forecast period (2023-2030).

Asia Pacific is anticipated to be the dominant region and was valued at USD 57.56 billion in 2022.

By end user, the residential sub-segment is expected to witness the highest CAGR during the forecast period.

Rising adoption of solar technology in developing and under-developing nations is the current market trend.

Demand for industrial segment in the construction industry is driving the market.

GE Lighting, Koninklijke Philips N.V., Panasonic Corporation, and Cree, Inc. are the top players in the market.

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