The “Global Architectural LED Products Market, by Product Type (Solar, and Conventional (Lamp, Strip, and Linear)), by End-use (Residential (Retail, IT & Telecommunication, and Banking, Financial Services & Insurance (BFSI), and Commercial (Media & Entertainment, Healthcare), by Application (Cove Lighting, Backlight, In Ground, Wall Washing, and Others), and by Geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Global Forecast to 2027”, is valued at US$ 8,067.3 million in 2019, witnessing a CAGR of 17.9% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
LED lighting fixture is an electric lamp that produces light with the use of one or more light-emitting diodes (LEDs). LED lights offer efficient performance, long life span and utilize only a fraction of energy as compared to traditional incandescent bulbs. LED get the colors from semiconductor chips, which eliminates the necessity for color filters thereby making the energy-efficient. LEDs are next-generation lighting technique can easily be directed on facades, which is why it is used commercial architectures. Moreover, LED lamps are used for displaying messages on billboards in commercial buildings and malls, where it works as a crowd puller.
The global architectural LED products market is estimated to account for US$ 8,067.3 Mn in terms of value by the end of 2019.
Relatively extended lifespan of LED products as compared to congenital incandescent lamps is expected to drive growth of the global architectural LED products during the forecast period
According to CMI’s analysis, replacement market revenue in overall lighting market is relatively low and is expected to decline constantly till 2021. This is owing to longer lifespan of architectural LED lights. LED lamps consume less energy as compared to incandescent lamps and thus, last longer than any contemporary lighting fixtures. For instance, an average lifespan of LED light bulb is around 50,000 hours, while it is 10,000 and 1,200 hours for fluorescent and incandescent light bulb respectively. This is encouraging major market players shift from traditional lighting products to LED lighting products. Moreover, growing competition among global and local players is expected reduce product cost and thereby provide affordable LED lamps. Hence, these factors are expected to drive the global architectural LED products market growth over the forecast period.
Advent of OLEDs is expected to pose significant business opportunity for market players over the forecast period
Organic LED is the next-generation technology, which offers surface light source, transparency, and flexibility to users. Such features are expected to boost the demand for architectural LED products in the near future. Moreover, major players in the market are and various start-ups of LED lamps have started manufacturing OELD lamps and offering architectural OLED lighting products. This, in turn, is expected to provide significant growth opportunity for market players during the forecast period. However, efficiency of these lighting fixtures is comparatively low though significant investment in R&D can facilitate players to introduce more energy-efficient lighting products in the near future.
Low awareness regarding benefits of LED lamps is expected to restrain growth of the global architectural LED products market during the forecast period
There is low awareness among consumers, especially in emerging economies, regarding benefits of LED lamps. This is owing to low penetration of LED lights in these regions, which in turn, is expected to restrict adoption of architectural LED products in up to certain extent. Moreover, high cost of installation dissuades consumers from installing LED lights, thereby restraining growth of the global architectural LED products market over the forecast period.
Regulatory ban on sales of high-energy consuming lighting products is expected to boost the demand for LED products in the region. For instance, in North America, there is a prohibition on manufacture, sale, and import of incandescent bulbs with aim to encourage adoption of energy-efficient lighting solutions. This, in turn, is expected to accelerate the adoption of LED products, including architectural LED products in the near future. Moreover, in 2014, the U.S. government and agencies banned the manufacture and use of 40-60W incandescent lamps, which is expected to support LED lighting products in the U.S. during the forecast period.
In late 2008, the Argentine Senate regulated a law to ban commercialization and import of incandescent light bulbs for residential use. The government made an exception to the law by excluding small bulbs of 25 watts or less power, which provide interior lighting in microwave ovens, refrigerators, and other devices.
Key companies operating in the global architectural LED products market are Epistar Corporation, GE Lighting LLC, Galaxia, Cree Inc., Cooper Industries PLC, Signify N.V., Philips Lumiled Lighting Company LLC, Verbatim Ltd., Osram Licht AG, Toshiba Lighting & Technology Corporation, and Samsung Electronics.
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.