Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
The commercial lighting refers to the lighting fixtures used for commercial spaces such as stores, offices, hospitals, institutions, government buildings, and other places that are not residential or manufacturing. Commercial lighting is rapidly adopting LED lighting fixtures since they provide higher cost-efficiency, energy-efficiency, and a variety of options. LED lighting delivers a high level of brightness, is reliable, and lasts longer than conventional lighting fixtures. LED lights are constructed using semiconductor components and emit little radiated heat as compared to other competing products.
The global industrial and commercial LED lighting market is estimated to be valued at US$ 138,625.6 million in 2021 and is expected to exhibit a CAGR of 36.4 % over the forecast period (2021-2028).
In February 2020, Toshiba, a Japan based multinational company launched LED Lighting products in North America.
In August 2021, Signify launched a Netherland based lighting company launched new range of Philips Smart Wi-Fi lights in India. They can also be controlled using the Wiz mobile app or voice assistant such as Google Assistant, and Amazon Alexa.
In October 2020, Panasonic, a Japan based electronics company has launched a Wi-Fi enabled Smart LED Bulb that includes multi-colour lighting options and automated scheduling functions.
Figure 1. Global Industrial and Commercial LED Lighting Market Value (US$ Mn), by Region, 2020
Europe held dominant position in the global Industrial and Commercial LED Lighting market in 2020, accounting for 32.4% share in terms of Value, followed by APAC, North America, respectively.
Global Industrial and Commercial LED Lighting Market - Drivers
High efficiency and durability of LED lights are expected to drive growth of the global industrial and commercial LED lighting market during the forecast period. LED is considered as a feasible alternative to conventional lighting due to its longer life span and higher energy-saving potential. LED lighting products are increasingly replacing conventional lighting products, owing to various benefits such as greater energy efficiency, high eco-friendly properties, small size, and lower heat output. LED lighting is an advanced and futuristic source of lighting as it reduces power consumption by up to 80% and generates about 90% less heat than incandescent bulbs. The life span of LED bulbs is about 10 times higher than that of compact fluorescent lamps and much higher than incandescent lamps. According to DOE, the widespread use of LEDs could save 348 TWh (compared to no LED use) of electricity which is equivalent to annual electricity output of 44 large electric power plants generating 1,000 MW each and result in a total saving of USD 30 billion at today’s electricity prices.
Government regulations on incandescent lamps are expected to boost the global industrial and commercial LED lighting market growth over the forecast period. Incandescent lamps consume more energy than LED lamps and thus, several governments have introduced stringent regulatory restrictions on their use. As a matter of fact, some countries have essentially banned the use of incandescent lamps. For instance, in the U.S., federal law scheduled the phasing out of incandescent bulbs by 2013 and replacing them with energy-efficient LED bulbs. Furthermore, in 2012, the Ministry of Economy, Japan, banned the use of incandescent lamps.
Global Industrial and Commercial LED Lighting Market: Opportunity
By analyzing patent filing trends over the last decade from 2000 to 2009, it is evident that LED technology filings dominated the publication trends by a wide margin as compared to fluorescent technology. In 2009, there were 17 patents for incandescent lamps, 122 patents for fluorescent, and 1,584 patents for LED-based lighting. Major companies in the market can capitalize on these opportunities by introducing novel technologies and products and gain a competitive edge in the market.
There is huge scope for LED lighting in the global lighting market. High efficiency and durability are driving demand for LED lighting across the globe. Currently, the penetration of LED lighting in the global lighting market is about 7% with incandescent and fluorescent lighting accounting for the majority of the market share. However, the market is witnessing higher adoption of LED lighting due to various benefits. Hence, the LED lighting market is expected to grow at a faster rate in the next few years. Design flexibility, controllability, and the ability to change the color temperature of LED lights enables intelligent lighting systems.
Industrial and Commercial LED Lighting Market Report Coverage
||Market Size in 2021:
||US$ 138,625.6 Mn
|Historical Data for:
||2017 to 2020
||2021 to 2028
|Forecast Period 2021 to 2028 CAGR:
||2028 Value Projection:
||US$ 1,215,930.9 Mn
- North America: U.S. and Canada
- Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Middle East: GCC Countries, Israel, and Rest of Middle East
- Africa: South Africa, North Africa, and Central Africa
- By End User: Industrial, Commercial, Outdoor, Architectural
Toshiba Corporation, Digital Lumens, Inc., GE Lighting Solutions, Koninklijke Philips Electronics N.V.3, Osram Licht AG, Cooper Industries plc, Cree, Inc., and Dialight plc.
- High efficiency and durability of LED lights
- Government regulations on incandescent lamps
|Restraints & Challenges:
- Significant dominance of fluorescent lamps
- High initial cost
Major companies are focused on research and development activities, in order to gain a competitive edge in the market. For instance, in February 2014, Osram Licht AG introduced an LED incandescent lamp replacement. The 40-watt replacement lamp will be available in the same size. Furthermore, in December 2013, Cree Inc. introduced a new LED way HO Street light, which provides nine adjustable lumen output levels with reduced energy consumption.
Government authorities are significantly investing in public infrastructures such as railway stations and airports wherein LED lights are being used. Since these lighting fixtures last longer than conventional lights and are energy efficiency, government authorities are more inclined towards LED lighting.
Figure 2. Global Industrial and Commercial LED Lighting Market Share, By XX, 2020
Key Takeaways of the Graph:
- The commercial segment held dominant position in the market and accounted for 52.6% share in the global industrial and commercial LED lighting market in 2020. The segment is expected to reach US$ 509,094.9 million in 2028. Growing demand for LED street lights across various countries including the U.S., China, and Germany is expected to foster growth. Further, increasing the construction of commercial buildings across the globe will impel demand.
Global Industrial and Commercial LED Lighting Market- Restraints
Significant dominance of fluorescent lamps is expected to restrain growth of the global industrial and commercial LED lighting market during the forecast period. Despite its popularity in developed countries, LED technology is still in the nascent stage and has low penetration in terms of technology and dominance as compared to other technologies in lighting. According to Coherent Market Insights’ analysis, in 2012, incandescent bulbs accounted for a market share of 58% in the lighting market, followed by fluorescent lamps with 25%. LED has a market penetration of around less than 10% due to its high cost.
High initial cost is expected to hinder the global industrial and commercial LED lighting market growth over the forecast period. Initial installation and adoption cost of LED is a major restraining factor in the market. A compact fluorescent lamp (CFL) has a shorter life span than LED light. If a CFL is replaced to achieve a lifespan equivalent to that of an LED light, only US$ 2.5 would require as compared to US$ 45, which is the initial purchase price of the LED light.
Major companies operating in the global industrial and commercial lighting market are Toshiba Corporation, Digital Lumens, Inc., GE Lighting Solutions, Koninklijke Philips Electronics N.V.3, Osram Licht AG, Cooper Industries plc, Cree, Inc., and Dialight plc.
Major companies are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in August 2017, Osram Licht AG acquired Digital Lumens, Inc.