"Electrifying your pathway to success through in-depth market research"

LED Lighting Market Size, Share & COVID-19 Impact Analysis, By Product Type (Lamp, Luminaries), By Distribution Channel (Online and Offline), By End-user (Residential, Commercial, Industrial, and Others), and Regional Forecast, 2022-2029.

Region : Global | Format: PDF | Report ID: FBI106832

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global LED lighting market size was valued at USD 77.79 billion in 2021. The market is projected to grow from USD 85.02 billion in 2022 to USD 264.08 billion by 2029, exhibiting a CAGR of 17.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with light emitting diode lighting experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on the analysis, the global market exhibited a decline of -2.6% in 2020 as compared to 2019.


Light Emitting Diode is a solid-state light source that can convert electrical energy directly into light energy. These devices are often used in lamps to replace incandescent light sources. This is expected to be one of the most energy-efficient and rapidly growing lighting technologies in the global market. This type of diodes last longer, can operate efficiently, and can give better light quality than traditional lighting technologies. This type of diode is expected to curtail the sales in the conventional lighting market of Compact Fluorescent Lamp (CFL) and Cold Cathode Fluorescent Lamp (CCFL) due to its advanced features. It's a cost-effective solution for all lighting and other applications, such as backlit widescreen and non-backlit (OLED) displays.


In addition to the aforementioned financial advantages, the initial cost of light emitting diode is very high, which limits its initial acceptability. However, due to the longer lifespan of these diodes, their overall cost valued in accordance with initial price offering, serving lifespan, and power consumption was found to be very low compared to CFLs. Consumers will realize the benefits of longer light emitting diode life and increase the use of these diode products such as LEDs and recessed lights. Growth in display backlight applications, reduction in the cost of light emitting diodes, longer lifespan, and high efficiency of these diodes are the key factors that are expected to drive the LED lighting market growth.


COVID-19 IMPACT


Shut Down of Manufacturing Facilities and Disruptions in Supply Chains Impacted Market Growth Negatively


The COVID-19 pandemic has evolved rapidly and its impact was being felt globally in supply chains. This factor had a negative effect on economic activities around the world. However, the global market is expected to see a moderate decline in 2020 and show a positive growth going forward due to the closures of manufacturing units of light emitting diode manufacturers in China, the United States, and European countries. This challenged the transfer of industrial production around the world. Since the beginning of the coronavirus outbreak in December 2019 in China, several cases have been reported. Similar to other manufacturing sectors, light emitting diode manufacturers were heavily dependent on Chinese companies, as their main source of raw materials. China is the first economy in the world to be mainly affected by the coronavirus due to which all of the production units had to close.


However, increasing use of energy-efficient lighting systems in emerging countries led to an increase in the installation of light emitting diodes in commercial and residential spaces, such as smart homes, warehouses, retail stores, and factories. China, India, Saudi Arabia, Germany, and South Africa are experiencing dynamic improvement in the use of such diode lamps and luminaries that has increased the installation of these diode systems. In addition, many governmental and non-governmental bodies such as the Energy Conservation Society, International Energy Conservation Corporation, and others have defined various laws to reduce lighting consumption and increase energy saving, which has driven the global market.


LATEST TRENDS


Request a Free sample to learn more about this report.


Growing Use of Energy-efficient Lighting Solutions to Fuel Market Progress


Light emitting diode is also an energy-efficient lighting system, which is anticipated to get influenced by surging trends of eco-friendly lighting systems. Energy saving or energy conservation is one of the most trending concerns across the globe and adoption of these systems has significantly contributed to the energy saving and energy conservation mission. Various facility managers and business owners became more conscious about energy saving and they established numerous organizational goals for energy saving. To achieve these goals, facility managers have been rapidly implementing light emitting diode systems in their organizations. This type of diode is an energy-efficient lighting technology and it has the potential to fundamentally transform the future of lighting in the world. Residential light emitting diode lights, which are ENERGY STAR rated products, consume as low as 75% less energy and their lifecycle is increased by 25% more than traditional incandescent lamps. Increasing use of LEDs has the potential to heavily improve energy conservation in the U.S. Majority of installation of lighting systems are using light emitting diode technology due to the benefits of these diode systems, which is expected to show positive trends in the market. Further, increasing use of building management systems in commercial buildings is expected to boost the growth of the global market.


DRIVING FACTORS


Highly Efficient Specification and Multiple Application of LED to Drive the Market Growth


Most of the emerging countries are shifting their focus toward energy conservation and eco-friendly lighting solutions. As part of this energy conservation agenda, most of the countries are actively installing these diode systems on a large scale. Over the past decade, many customers have switched from CFL to light emitting diode bulbs. Lighting can consume up to 20% or 25% of overall energy costs, so shifting to LEDs can save money and reduce monthly energy bills. Also, light emitting diode lighting has various applications such as backlight of switches of electronic devices and internal lighting of light emitting diode screens. LEDs are lightweight and can be easily fitted in various home decorations for enhanced aesthetics representation. It is also used in the camera flash, signal lights, and aviation lights. Such benefits of these diode lighting systems are expected to drive the market globally.


RESTRAINING FACTORS


High Initial and Deployment Costs of LED Lighting System to Restrain Market Growth


Light emitting diode systems have been rapidly becoming popular since the last few years. However, the initial cost of a single unit of this type of diode system is much higher than the existing CFL lighting system. The components, such as diodes, transmitters, and capacitors, which are used in this system are expensive, which will directly impact the initial retail cost of the overall system. Furthermore, the replacement of existing systems and installation of new light emitting diode lights is not affordable for residential customers, which will also hamper the global market.


SEGMENTATION


By Product Type Analysis


Lamp Segment to Dominate Due to Shift from Traditional Lighting to LEDs


By product type, the market is divided into lamp and luminaries


Due to increasing adoption of light emitting diode lighting and technological advancements, the lamp segment generated the highest revenue in 2021 and is expected to continue the trend during the forecast period. Due to increasing use of light emitting diode lamps and replacement of traditional lighting systems with LEDs, the segment is projected to witness a heavy traction from customers. The lamp segment is showing significant growth opportunities and is expected to drive the market.


The luminaries segment observed a moderate growth due to increasing use of modern technology in this type of diode system. The luminaries segment is expected to grow with the highest CAGR during the LED lighting market forecast period.


By Distribution Channel Analysis


Due to Customer-friendly Shopping Option, Offline Segment Generated Highest Revenue in 2021


By distribution channel, the market is classified into online and offline.


The demand for light emitting diode lighting has been increasing owing to its high technical benefits. It is easily compatible with traditional electric fittings as well as switches. Owing to several benefits of offline shopping, such as real-time feel of lighting effect and availability of various lighting effects in a single roof, offline distribution of LEDs gained the highest revenue in 2021.


However, the online segment is recorded as the highest growing segment outpacing its peers over the forecast year. Increasing use of online shopping and artificial intelligence in online shopping is anticipated to propel the growth of the online segment in the forecast period. 


By End-user Analysis


To know how our report can help streamline your business, Speak to Analyst


Residential Segment to Record Highest Revenue Due to Increasing Adoption of the Product


By end-user, the market is classified into residential, commercial, industrial, and others. The residential segment is estimated to hold the highest market share in the near future due to numerous benefits of light emitting diode systems in households. The residential segment generated the highest revenue in 2021 and is estimated to grow at the highest CAGR during the forecast period. Numerous customers are choosing this type of lighting, which is anticipated to drive the market globally. The industrial segment is also expected to follow the same trends during the forecast period. Furthermore, the revenue generated by the number of unit sales for light emitting diode devices in residential and industrial segments is very high as the use of light emitting diode device is very frequent in these segments, which can shorten the life of devices and generate the need to replace them.


However, commercial and other segments are anticipated to show moderate growth rate during the forecast period. However, restricted financial budgets in commercial and other segments are anticipated to affect the global market.


REGIONAL INSIGHTS 


Asia Pacific LED Lighting Market Size, 2021 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


The Asia Pacific market size stood at USD 40.96 billion in 2021 and is a dominating region in the global market during the forecast period. The increasing use of light emitting diode lamps and luminaries in smart homes and smart cities is projected to drive the market development in the region. Moreover, top players are adopting various business strategies to propel the market growth in the region.


China Generated Highest Revenue in 2021 Due to Heavy Manufacturing Units in the Country


China is the highest revenue generating country. As per the analysis, it will become the highest growing country during the forecast period. China has one of the most advanced manufacturing facilities of diode in the globe and it is rapidly adopting the emerging trends of savings in regular industrial as well as residential operations, which is anticipated to surge the adoption of the product in the country.


Some top players are adopting various business strategies, such as partnership, acquisition, and business expansion, to boost the market in the country. Also, China is a global hub for manufacturing of semiconductors and transmitters, which will drive the market in the country.


Due to increasing demand for LED lighting in Asia Pacific and presence of key players in India and China, it is expected to be the highest growing region over the forecast period. Furthermore, the growing number of small and medium scale system manufacturers in the emerging countries, such as India, Japan, and South Korea, is contributing to boost the market in the region. Also, some government authorities are taking initiatives, such as the Make in India campaign, in India which is also driving the market in the region.


Moreover, in North America, the U.S. market is expected to flourish significantly during the forecast period due to the adoption of advanced technology in residential as well as industrial sectors in the U.S., which is responsible for the growth of the market.


In Europe, Germany dominated the overall regional market in 2021, and it is expected to continue this trend during the forecast period. Moreover, Germany is estimated to have the highest CAGR in the forecast period due to availability of large manufacturing units of smart home equipment in the country.


To know how our report can help streamline your business, Speak to Analyst


Due to slower adoption of advanced technology and lack of availability of skilled labor, which are required for operation of manufacturing plants of smart lighting equipment, the growth of the market in the Middle East & Africa and South America is moderate.


KEY INDUSTRY PLAYERS 


Setting-up Production Plants in Economical Countries to Save Labor and Production Cost 


Among the top players, Signify Holding is identified as a prime performer in terms of market share. The company is a major manufacturer of diodes and capacitors, which are the main components of the LED system. It also provides raw materials to other players in the global market. Companies, such as OSRAM, Acuity Brands Lighting Inc., Dialight, Digital Lumens Inc., Hubbell Lighting, LSI Industries Inc., LumiGrow, and others, have set-up their production plants in various countries, where the production and labor cost is less as compared to others. Furthermore, most of the players are focusing on product launches, acquisition, and partnership strategies with various small size and medium-sized companies, which is anticipated to expand their regional presence.                               


List of Key Companies Profiled:



KEY INDUSTRY DEVELOPMENTS:



  • October 2021 - Signify Holdings, a branch of Philips Lightings and provider of LED solutions, launched its new product called Philips HexaStyle downlight. This product launch of Signify will provide hexagonal LED solutions for creating different ceiling designs.

  • July 2020 - Savant System Inc., a provider of smart home solutions, acquired lighting business from GE lighting system. This acquisition will provide more innovative LED solutions for its customers.   

  • October 2021 – Skyview Capital, a global investment firm, acquired the digital lighting business from the OSRAM Licht AG. This acquisition will enable Skyview Capital to enter in the smart LED business.

  • June 2021 - Wipro lighting system, a provider of LED lights and LED luminaries, partnered with Enlight, a leading provider of the Internet of Things based lighting software to provide better experience to its customers.

  • June 2022 - LED light and solution provider company DEDO lights and its partner company Prolycht launched the new RGBLAC LED lighting system. This LED provides 6:1 variation spot light beam.


REPORT COVERAGE


An Infographic Representation of LED Lighting Market

To get information on various segments, share your queries with us



The global 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 industries 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 contributing to the market growth in recent years.


Report Scope and Segmentation















































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD Billion)



Segmentation



By Product Type



  • Lamps

  • Luminaries



By Distribution Channel



  • Online

  • Offline



By End-user



  • Residential

  • Commercial

  • Industrial

  • Others



By Region



  • North America

    • U.S. (By End-user)

    • Canada (By End-user)

    • Mexico (By End-user)



  • Europe

    • U.K. (By End-user)

    • Germany (By End-user)

    • France (By End-user)

    • Italy (By End-user)

    • Spain (By End-user)

    • Russia (By End-user)

    • Benelux (By End-user)

    • Nordics (By End-user)

    • Rest of Europe (By End-user)



  • Asia Pacific

    • China (By End-user)

    • India (By End-user)

    • Japan (By End-user)

    • South Korea (By End-user)

    • ASEAN (By End-user)

    • Oceania (By End-user)

    • Rest of Asia Pacific (By End-user)



  • Middle East & Africa

    • Turkey (By End-user)

    • Israel (By End-user)

    • GCC (By End-user)

    • North Africa (By End-user)

    •  South Africa (By End-user)

    • Rest of Middle East and Africa (By End-user)



  • South America

    • Brazil (By End-user)

    • Argentina (By End-user)

    • Rest of South America (By End-user)





Frequently Asked Questions

Fortune Business Insights says that the market stood at USD 77.79 billion in 2021.

In 2029, the global market is expected to be valued at USD 264.08 billion.

The market is set to exhibit a CAGR of 17.6% during the forecast period (2022-2029).

Asia Pacific is anticipated to be the dominant region, and it stood at USD 40.96 billion in 2021.

Among end-users, the residential segment is expected to witness the highest CAGR during the forecast period

Energy-efficient lighting is the key trend in the global market.

Highly efficient specification and multiple applications of LED over CFL bulbs drives the market.

Acuity Brands Lighting Inc., Dialight, Digital Lumens Inc., Hubbell Lighting, LSI Industries Inc., and LumiGrow are the top players in the market.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Sep, 2022
  • 2021
  • 2018-2020
  • 140

    CHOOSE LICENSE TYPE

  • $4850
    $5850
    $7850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Semiconductor & Electronics Clients

Go daddy
Google
ey
Toshiba
Softbank

Client Testimonials

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X