SOLID STATE LIGHTING MARKET ANALYSIS

Global solid state lighting market size was valued at US$ 33.45 Bn in 2022, and exhibiting a compound annual growth rate (CAGR) of 10.65% from 2023 to 2030.

Global solid state lighting market is expected to witness growth, owing to increasing demand for environmentally friendly and energy-saving lighting solutions. The technological advancements in Illumination sector is anticipated to provide more lighting output with reduced power usage. For instance, in March 2020, Nichia Corporation, a company specialized in LED technology launched COB and SMD LEDs to address mass market demand for lighting solutions based on solid state lighting. This helped the company to extend its offering of solid state lighting solutions for medical applications.

Growing consumer awareness about energy efficient LED (Light Emitting Diode) lights, increasing applications such as automotive, medical, and outdoor lighting due to usage of solid state lighting, and emerging smart city technology are expected to drive the market growth. Solid state lighting is used in a wide range of applications due to its various benefits including extended life, higher light output quality, inherent safety, compact size, and great durability.

Global Solid State Lighting Market- Regional Insights

Asia Pacific accounted for largest market share of approximately 29% during the forecast period, owing to presence of major key market players such as Nichia Corporation, Everlight Electronics, Mitsubishi Electric Pvt. Ltd, and others in the region. Furthermore, Japan's solid state lighting sector receives Japan government’s support and investment. The Japanese initiatives aimed to take advantage of the massive energy savings and greenhouse gas reductions. This has attributed from the development of high-performance white LEDs. In addition, the distribution of LEDs in India have increased substantially over last 5 years. For instance, in December 2022, according to the statistics from the Ministry of Power, India, approximately 368.6 million units of LED bulbs were delivered across households in India.

North America is expected to exhibit significant growth during the forecast period, owing to increasing adoption and new product developments of solid state lighting solutions. For instance, in March 2023, Cree LED, an LED chip manufacturer launched new J series of LEDs for roadway and indoor professional applications. The newly launched LED products are ideal for directional lighting applications. This launch helped the company in offering LED lighting solutions for various commercial applications. Similarly, multiple companies offering LED solid state lighting are expanding their offerings to cater various industries such as healthcare, commercial, automotive, and many others. This is anticipated to contribute to the growth of solid state lighting market in North America.

Figure 1. Global Solid State Lighting Market Share (%), By Region, 2022

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Global Solid State Lighting Market- Dynamics

Increasing demand for cost effective and energy saving system

Global solid state lighting market is expected to witness growth, as several lighting firms are attentive towards improvement of white LED performance and pricing, and efficiency of LED-based fixture designs. Increasing  usage of high-brightness (HB) LEDs for lighting applications, especially as HB LED performance (lumen output, efficiency) has improved substantially in the last year; further emerging as an option in multiple lighting applications. Solid state lighting is a term for the use of LEDs in lighting. Solid state luminaries are energy-efficient and cost-effective, and thus, the solid state lighting industry is driven by energy saving capabilities.

Increasing government initiatives in solid state lighting industry

Furthermore, global solid state lighting market is expected to witness growth due to its operational advantages, increasing governmental measures supporting sustainable development, rising awareness among people regarding impact of lighting on human health. Moreover, the concept of smart lighting and the development of technologies to improve the lighting efficiency is emerging as an opportunity   for solid state lighting solutions provider. Technology investment in the solid state lighting industry is required to drive the market growth.

High initial cost of solid state lighting systems to negatively impact the market growth

Compared to the traditional lighting solutions such as florescent lights, solid state lighting systems require a higher initial investments. The high initial cost of solid state lighting systems has emerged as an barrier to entry for some consumers.

Figure 2. Global Solid State Lighting Market Share (%), By Type, 2022

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Global Solid State Lighting Market- Segmentation

Global solid state lighting market report is segmented into type, application, installation type, end user, and region.

Among type, LED segment is projected to hold its dominance in the global solid state lighting market over the forecast period. LEDs have gained dominance in the global market due to several advantages including energy efficiency, extended lifespan, durability, environmental benefits among others. Additionally, LED lighting has gained widespread adoption in various applications such as general lighting, automotive lighting, signage, etc. This is expected to contribute to the continued dominance in the global solid state lighting market in the coming years

Among end user, the automotive segment is expected to hold the dominant position in the global solid state lighting market during the forecast period. Automotive manufacturers benefit from solid state and other energy-efficient lighting technologies due to its high efficiency and extended battery life. The automotive industry uses solid state lighting technology for vehicle applications, majorly in headlights, interior lights, among others.

Global Solid State Lighting Market- Key Developments

In January 2023, Nichia Corporation, a lighting solutions manufacturer, announced the expansion of LED portfolio with the launch  of NVSW219C-V2 and NVSW719AC solutions. This is expected to help the company in catering customer demand for diverse solid state lighting solutions.

In December 2022, Hella, an automotive supplier initiated the production of solid state lighting based high definition headlamps at its facility in Lippstadt, Germany. This is anticipated to help the company in delivering solid state lighting solutions to enterprises operating in multiple industry verticals, specifically for automotive sector.

The competition in the global solid state lighting market is intense, with companies competing on the basis of factors such as product innovation, pricing and distribution, To remain competitive, companies are investing heavily in research and development to improve the efficiency and performance of their products while reducing costs. They are also focusing on expanding their product portfolios and distribution channels to reach a broader customer base.

Global Solid State Lighting Market- Key Competitors

Global solid state lighting market is highly competitive, owing to increasinglaunch of new technologies due to ongoing research & development and efforts by value chain participants. Moreover, key players are adopting various business growth strategies, in order to expand their presence on regional as well as global basis.

Some of the key players in the global solid state lighting market are Acuity Brands, Cree Inc., Eaton, GE Lighting, Philips Lighting, Osram Group, Nichia Corporation, Seoul Semiconductor, Zumtobel Group, Everlight Electronics, GE Lighting, Mitsubishi Electric Pvt. Ltd, Intematix, Bright Light Systems, Aixtron, Applied Materials Inc., Bridgelux, and Energy Focus Inc.

*Definition: Solid state lighting (SSL) is a type of lighting that uses semiconductor light-emitting diodes (LEDs), organic light-emitting diodes (OLEDs), or polymer light-emitting diodes (PLEDs) instead of electrical filaments, plasma (used in arc lamps such as fluorescent lamps), or gas as sources of illumination.