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.
Work light refers to high-intensity light fixtures that are used to illuminate the stage for the benefit of technicians. Technicians use these light fixtures for a number of reasons. Portable lights that are specifically designed to temporarily illuminate the working area at the residential, commercial and industrial work and use LED technology as a source of illumination are defined as LED Work Light. Different types of LED work lights are available in the market namely LED lantern, LED headlamp, and LED handheld lights. These light fixtures are used in residential, commercial, and industry use.
The global LED work light market is estimated to account for US$ 11,620.6 Mn in terms of value by the end of 2027.
Market Dynamics- Drivers
- Increasing consumer demand for efficient, low maintenance, and durable work light is expected to drive growth of the global LED work light market during the forecast period
Various end users across the market are demanding LED work light fixtures with high quality, efficiency, longevity, durability, and lower maintenance. Since LED work lights provide more applicable advantages, many end-use industries are increasingly adopting these light fixtures. For instance, LED work lights to have a significantly high service life of around 30,000 to 50,000 hours as compared to halogen lamps, which have service lives of around 150 to 540 hours. Hence, these factors are expected to drive growth of the global LED work light market over the forecast period.
- Growing inclination towards new features and advanced capabilities in portable lights is expected to propel the global LED work light market growth over the forecast period
Many end-use customers are increasingly preferring work light fixtures with new features and advanced capabilities. There is a high demand for work light fixtures that can be remotely controlled. Users can direct a brilliant LED light anywhere they need by simply manipulating the lamp’s remote control feature. For instance, workers on-site need to adjust the beam direction of work lights from faraway spots. They could direct the LED light anywhere by using the remote control feature. Larson Electronics, a manufacturer of LED work lights has developed a product range of remote-controlled work lights that provide users the facility of adjusting lighting fixtures; thus, eliminating the need to physically adjust the fixture itself. Hence, these factors are expected to propel the global LED work light market growth in the near future.
Europe held dominant position in the global LED work light market in 2019, accounting for 35.2% share in terms of value, followed by Asia Pacific, North America, Latin America and MEA respectively.
Figure 1: Global LED Work Light Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraint
- Consumer perception is expected to hamper the global LED work light market growth over the forecast period
Although LED work lights are being increasingly adopted among consumers, there is perception among some users that they are expensive. Moreover, there is a lack of awareness regarding benefits of LED lighting product s Although LED work lights could not be very attractive in terms of price per lumen and initial capital cost basis vis-à-vis conventional work lights, when total ownership cost (including energy and maintenance costs) is considered, the former outdo incandescent or halogen sources. Hence, these factors are expected to hinder the market growth over the forecast period.
- Development of alternative technologies is expected to restrain growth of the global LED work light market during the forecast period
Although LED has become popular among many consumers, many end users still prefer CFL or incandescent lighting fixtures. Since these fixtures cheaper than LED lights, consumers are increasingly preferring alternative technologies. Hence, these factors are expected to restrain growth of the global LED work light market in the near future.
- Latent population of non-users in several countries can present lucrative growth opportunities
A vast part of the population still remains non-user of LED work lights, torches flashlights, and lanterns. This is typically observed in countries with emerging economies such as Brazil, India, and China. By making these work light types available in these populations, the market potential in these countries could be tapped, thereby creating a vast new opportunity for the growth of the LED work light market. It should be noted that the demand for such LED work lights is spread across various price points, which provides major growth opportunities.
- Advent of green technology initiatives can provide excellent business opportunities
According to Coherent Market Insights’ analysis, LED lighting technology is expected to gain major traction in the commercial sector by 2020. This is characterized by a significant drop in the price of LED products, making them commercially viable. This opportunity creation is expected to be further propelled by the green revolution in lighting, which makes a preferential choice in favor of LED lighting products, such as LED work lights.
Figure 2: Global LED Work Light Market Value (US$ Mn), 2017 - 2027
The global LED work light market was valued at US$ 9,076.3 Mn in 2019 and is forecast to reach a value of US$ 11,620.6 Mn by 2027 at a CAGR of 3.1% between 2020 and 2027.
- Increasing number of new LED work light installations
Apart from being more energy-efficient, LED lights to have significantly extended lifetime as compared to that of conventional ones. This has been adversely affecting the replacement market, as consumers do not need to replace their lighting products frequently. Rather, as renovations and new infrastructures are followed by new installations, preferential purchase of LED work lights has been an important trend observed in recent times.
- High market growth rate is another major trend
According to Coherent Market Insights’ analysis, since 2011, the global market of LED lighting products has been growing annually by more than 10% consistently, as is the case with LED work lights. It has been observed that the market ratio of lighting fixtures and replacement light sources was 8:2. The top ten LED lighting firms accounted for around one-third of the global market.
Key players involved in the global LED work light market are ABL Lights Inc., WF Harris Lighting, Bayco Products Inc., Streamlight Inc., Cooper Industries (EATON Corporation), Luceco plc, Ericson Manufacturing Co., Lex Products Corp, and Larson Electronics LLC.
- Major companies in the market are focused on product launches, in order to expand the product portfolio. For instance, in January 2020, Streamlight Inc. introduced Waypoint 300, a rechargeable high lumen pistol grip spotlight with augmented downrange lighting capability.
- Key market players are involved in mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in October 2019, Signify acquired Eaton Corporation for US$ 1.4 billion in cash.