Solid State Lighting Market Size, Share & Industry Analysis, By Technology (Light Emitting Diodes (LED), Organic Light Emitting Diodes (OLED), and Polymer Light Emitting Diodes (PLED)), By Installation Type (New Installation and Retrofit/Replacement), By Application (Residential, Industrial & Commercial, Automotive & Transportation, Outdoor/Public Infrastructure, and Others (Specialty, Medical, etc.)), and Regional Forecast, 2025-2032

The global solid state lighting market size was valued at USD 81.26 billion in 2024. The market is projected to grow from USD 88.79 billion in 2025 to USD 176.87 billion by 2032, exhibiting a CAGR of 10.35% during the forecast period. 

Solid state lighting (SSL) is a type of lighting technology that uses semiconductor materials, such as light-emitting diodes (LEDs) and organic light-emitting diodes (OLEDs), to create light. SSL generates light through a process called electroluminescence. In this process, moving electrons in a solid semiconductor release energy as light.

The market is growing due to regulatory requirements, technological breakthroughs, and growing awareness of energy saving. Increased energy conservation laws, declining LED costs, the growth of smart lighting, and the usage of SSL in a larger range of applications, such as automotive, medical, and outdoor lighting, are some of the other elements driving growth. 

Signify Holding, Acuity Brands, asm OSRAM, Nichia, Samsung Electronics, LG Innotek, and Seoul Semiconductor are some of the top companies working in this industry. 

Impact of Gen AI

Generative AI Positively Impacts the Industry Through Advancements in Product Development

The emergence of Generative AI is changing the design development process in the solid state lighting industry and enabling advancements in product development. Generative AI supports the automated design and evaluation of fixtures and lighting layouts. It gives manufacturers and system designers the ability to perform simulations, advance modeling, and end-to-end optimization in off-line design, using synthetic data to develop the virtual control strategies which offer the best anticipated performance.

MARKET DYNAMICS

Market Drivers

Rising Demand for Connected and Smart Lighting Drives Market Growth

One of the main factors propelling the solid state lighting industry is the quick adoption of connected and smart lighting solutions. Wireless communication technologies, data analysis, and IoT-based control sensors are transforming lighting into an intelligent and effective energy infrastructure. In addition to providing automated operations and remote management, these technologies lower maintenance costs and energy usage. The need for responsive, data-driven lighting is rising as smart cities and green construction initiatives gain more attention, which fuels growth in the market.

Market Restraints

High Price and Margin Pressure to Hinder Growth in the Market

The solid state market is struggling due to ongoing price erosion and margin compression issues. Product prices continue to decline as competitive intensity among manufacturers increases, resulting in lower profitability margins and reducing the room to invest in innovative technologies. The increasing commoditization of all LED products amplifies this issue by making it difficult for manufacturers to compete based on innovation or valued-added services. Ongoing demand by end-users for constant cost reduction, and system wide procurement also compresses margins, limiting operations for competitors and slowing overall market growth in spite of increasing demand for energy efficient lighting products. 

Market Opportunities

Growing Focus On Industrial Digitalization Creates Market Opportunities

The increasing market penetration of industrial digitalization is producing immense potential in the solid-state lighting market. New factories and warehouse complexes increasingly connect their lighting systems with digital platforms for asset tracking, occupancy monitoring, and performance management. Smart LED solutions connected to IoT networks can facilitate real time data exchange, assisting businesses in improving productivity and energy efficiency. These smart lighting systems are accurately adjusting brightness based on employee presence or operational needs and preemptively support maintenance needs. As industries transition toward connected infrastructure and automated systems, the demand for new and advanced solid state lighting solutions for industrial settings will continue to increase as well.

SOLID STATE LIGHTING MARKET TRENDS 

Growing Adoption in Human-Centric Lighting Emerges as a Major Market Trend

A key trend that has emerged in the solid state lighting market is the growing interest in human-centric lighting solutions meant to improve comfort, productivity and well-being. There is rising demand for tunable white and spectral lighting systems, in different environments such as office buildings, healthcare facilities, and retail spaces. Such systems are designed to provide accurate control over color temperature and intensity, allowing these systems to replicate daylight and support circadian rhythms, concertation and mood. In retail environments, such adaptive lighting systems make product display more appealing and customer experience more pleasant. The trend toward improved well-being and customizable lighting represents a new movement in the use of lighting in modern lighting solutions. 

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SEGMENTATION ANALYSIS

By Technology

Higher Energy Efficiency and Longer Lifespans Boosts Light Emitting Diodes (LED) Segment Growth

Based on the technology, the market is segmented into Light Emitting Diodes (LED), Organic Light Emitting Diodes (OLED), and Polymer Light Emitting Diodes (PLED).

The Light Emitting Diodes (LED) segment held the largest revenue share of USD 72.41 billion in the overall global market in the year 2024. LEDs deliver far higher energy efficiency and longer lifespans at rapidly falling costs, while meeting regulations phasing out inefficient lamps. As a result, they have become the standard option for almost all lighting applications.

Of all the segments, Polymer Light Emitting Diodes (PLED) holds the highest CAGR of 14.54% in the global market. They start from a tiny base and can be solution-processed (printed) onto flexible, lightweight substrates, unlocking low-cost manufacturing and new form-factor applications, driving the fastest percentage growth.

By Installation Type

New Installation Segment Dominates Market Owing to Inclusion of LED Lights and Controls

Based on installation type, the market is divided into new installation and retrofit/replacement.

The new installation segment dominates with a market share of USD 52.29 billion. Most new buildings, infrastructure, and smart-city projects now specify LEDs and controls by design, which is driven by energy codes and green standards. Thus, new installations capture the largest share of spend.

Retrofit/replacement holds the highest CAGR of 12.47% in the global market. The vast installed base of legacy lighting is being rapidly upgraded, spurred by phase-out regulations, utility incentives, and quick payback. Thus, retrofit projects are accelerating faster than new builds. 

By Application

High Light Demand and Long Operating Hours Augments the Industrial & Commercial Segment Growth

Based on the application, the market is divided into residential, industrial & commercial, automotive & transportation, outdoor/public infrastructure, and others (specialty, medical, etc.).

The industrial & commercial segment for accounted for the largest solid state lighting market share at USD 34.84 billion in 2024. Large non-residential spaces, such as offices, retail, factories, and warehouses, have high lumen demand and long operating hours, efficiency-driven LED upgrades concentrate the most spending in industrial & commercial applications.

Residential represent the largest CAGR at 11.64% in the global market. Smart, connected, and human-centric lighting upgrades are spreading rapidly in many regions. Thus, residential demand is accelerating from a large retrofit base. 

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SOLID STATE LIGHTING MARKET REGIONAL OUTLOOK

Geographically the market is segmented into North America, Europe, Asia Pacific, South America and Middle East & Africa.

North America

The North America region is exhibiting substantial growth in the market. The region’s growth is attributed tohigh demand in commercial, residential, and industrial industries and a strong presence of top manufacturers. The market size is valued at USD 22.86 billion in 2025. 

The U.S. is at the forefront of the North American market, with expected revenue of USD 16.33 billion in 2025. The growth of the country is attributable to various elements such as consumer demand for energy efficiency, government regulations, and the increasing adoption of SSL in diverse applications such as smart cities, automotive, and medical lighting.

Europe

The European market is substantially growing and is likely to contribute to a revenue share of USD 16.34 billion in 2025. The growth of the region is attributable to a number of factors. These include energy efficiency mandates, advancements in LED and OLED technology, and the rise of smart, connected lighting solutions in smart city projects.

The U.K., Germany and France are some of the leading contributors to the growth in the market, with the required revenue stake of USD 3.17 billion, USD 3.05 billion and USD 2.63 billion respectively by 2025.

Asia Pacific

Asia Pacific is currently leading the global industry. The market size was valued at USD 35.44 billion in 2024. The region combines the world’s largest manufacturing base with massive urbanization and infrastructure build-out, along with strong efficiency policies, driving the highest concentration of SSL demand and deployments.

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At the same time, Asia Pacific is also expected to have the highest CAGR of 12.63%, further solidifying the market as the fastest growing. This maximum CAGR is attributable to rapid urbanization, ongoing infrastructure expansion, and strong manufacturing-led cost advantages, reinforced by pro-efficiency policies in China, India, and Southeast Asia.

India and China are major contributors to the solid state lighting market growth with an expected revenue share of USD 5.53 billion, and USD 8.22 billion respectively by 2025.

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South America and Middle East & Africa

The markets of South America and Middle East & Africa are growing with an expected share of USD 5.95 billion and USD 3.98 billion respectively in 2025. The growth of these regions is attributable to energy efficiency mandates, government support for sustainable infrastructure, and urban development. 

GCC countries are predicted to have a market share of USD 1.24 billion by 2025. 

COMPETITIVE LANDSCAPE

Key Industry Players

Top Companies Invest in R&D for New Technologies to Expand Their Market Reach

The top companies in the industry include Signify Holding, Acuity Brands, ams OSRAM, Nichia, Samsung Electronics, LG Innotek, and Seoul Semiconductor. These companies employ strategies such as investing heavily in R&D for new technologies such as advanced LEDs and smart lighting, and using M&A, partnerships, and strategic alliances to expand market reach. Other common strategies include local manufacturing to reduce costs, new product launches, and focusing on energy-efficient and eco-friendly solutions to meet sustainability demands from both consumers and governments.

LIST OF KEY SOLID STATE LIGHTING COMPANIES PROFILED

• Signify Holding (Netherlands)
• Acuity Brands (U.S.)
• ams OSRAM (Germany)
• Nichia (Japan)
• Samsung Electronics (South Korea)
• LG Innotek (South Korea)
• Seoul Semiconductor (South Korea)
• Lumileds (Netherlands)
• LEDVANCE (Germany)
• Zumtobel Group (Austria)
• Everlight Electronics (Taiwan)
• Cree LED (U.S.)
• Cooper Lighting Solutions (U.S.)
• Hubbell Incorporated (U.S.)
• OPPLE Lighting (China)

KEY INDUSTRY DEVELOPMENTS

• August 2025- ams OSRAM has announced a decisive technological advance, achieved in the course of evaluating a new generation of UV-C LEDs. ams OSRAM has now achieved a technological breakthrough in this field within the scope of the evaluation of a new UV-C LED. The LED delivers over 10 percent efficiency at 200 milliwatts power, a wavelength of 265 nanometers, and a lifespan exceeding 20,000 hours. With these specifications, it can replace conventional mercury discharge lamps in the future.
• June 2025- Signify (Euronext: LIGHT), the world leader in lighting has launched a new wireless emergency lighting portfolio and monitoring system, Interact Emergency Lighting System, enabling building managers to control, monitor and test emergency lighting and produce compliance reports, through a secure cloud-based dashboard.
• April 2025- Fusion Optix®, a U.S.-based leader in advanced optical components, LED light engines, and integrated lighting solutions, has announced the acquisition of three Vermont-based lighting technology companies: LEDdynamics, Prolume Lighting, and LEDSupply. The move represents a significant step forward in Fusion Optix’s expansion strategy, enhancing its presence in standard, custom and outdoor lighting, driver technologies, and direct-to-consumer e-commerce.
• August 2023- ETi Solid State Lighting Inc. (ETi), an industry-leading manufacturer of LED lighting systems and luminaires, is pleased to announce a strategic partnership with Metra Associates to serve as the exclusive representative of ETi’s lighting portfolio across the state of Florida. This collaboration between ETi Solid State Lighting and Metra Associates signifies a powerful synergy between two industry leaders, poised to reshape the lighting landscape in Florida and deliver unmatched solutions to customers.
• February 2022- GE Current, a Daintree company, has completed the acquisition of Hubbell® Incorporated’s commercial and industrial (C&I) lighting business, creating a premier end-to-end lighting solutions business. The combined new business will be branded as Current.

REPORT COVERAGE

The global report provides a detailed analysis of the market and focuses on key aspects such as prominent companies, deployment modes, types, and end users of the product. Besides this, it offers insights into the solid state lighting industry trends and highlights key industry developments and market share analysis for key companies. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years. 

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Report Scope & Segmentation