The Global LED Lighting Market, By Product Type (LED Bulbs, Bare LED Tubes, LED Fixtures, LED Down lights and Others), By Services (Installation Services, Consulting Services and Maintenance & Support Services), By End User (Residential, Commercial, Industrial), By Application (Outdoor, Indoor, Backlighting, Automotive and Others) and by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 175,400.3 million by 2027, exhibiting a CAGR of 17.7% during the forecast period (2019-2027).
Light-Emitting Diode (LED) is a solid-state semiconductor device that converts electrical energy into light energy. LEDs are highly efficient and significantly longer lifetime compared to traditional light sources. LEDs are among the most efficient lighting sources available, which is expected to gain significant traction in the near future. According to Coherent Market Insight’s analysis, development in technology is expected to increase energy saving up to 90% compared to conventional technologies. LED lighting features long operational life, better energy efficiency, eco-friendly operation, ability to withstand rough conditions, flexible design features, and low voltage usage.
Global LED Lighting Market was valued US$47,781.0 Mn in 2019 and is expected to exhibit a CAGR of 17.7% during the forecast period (2019-2027)
Growing adoption of LED Lighting in commercial applications is expected to drive growth of the global LED Lighting market during the forecast period
LEDs are being increasingly adopted across various industries and sectors including government offices, stadiums, hospitals, malls, educational institutes, multinational companies, events and performances, airports, railways, theaters, etc. This is owing to high energy efficiency, extended life span, flexibility, and environment-friendly. Moreover, government agencies are offering contracts to private companies to install lighting systems at historical monuments and other places. For instance, in 2013, the Royal Castle in Warsaw, Poland, installed Philips’ LED solution, eW Graze linear, on the façade of the royal castle. The objective of this was to display the color of the facade as realistically as possible. Furthermore, in 2014, the Turkish government awarded a contract to Philips to install architectural LED products across 21 sites in Ankara city. Hence, these factors are expected to drive the global LED Lighting market growth over the forecast period.
Green technology initiatives and commercial feasibility of LED lighting is expected to present lucrative business opportunity for market players over the forecast period
According to Coherent Market Insights’ analysis, LED lighting technology is expected to gain significant traction in 2020 in terms of commercial feasibility. This is owing to reduction in cost of LED products, in order to make them commercially viable. Moreover, green technology initiatives in many countries are expected to pose lucrative growth opportunity for market players during the forecast period. Furthermore, growing awareness regarding energy conservations and rural development in emerging economies such as South Africa and India are expected to present significant growth opportunity for market players in the near future.
High contribution of aluminum in manufacturing of LED lamps is expected to restrain growth of the global LED Lighting market over the forecast period
The primary raw material used in the manufacture of LED lamps is aluminum, which constitutes around 50% of the overall metal used. Any unforeseen or negative fluctuations in pricing of aluminum may significantly affect profitability of LED manufacturers. Although prices of aluminum have declined significantly in the recent past, any increase in aluminum pricing could hamper growth of the global LED Lighting market to a moderate extent during the forecast period.
Previously, portable solar lanterns with a solar panel, battery, and lighting unit were the only solar powered lighting device available in the market. However, the trend is rapidly shifting towards pico-powered lighting systems (PLS), owing to increasing mobile phone proliferation and challenges faced by consumers when they need to charge their phones. Moreover, with lighting as a base function, PLS offers various features including mobile charging, multiple brightness levels, torch mode, grid / alternative charging, and battery level indicator.
Smart lighting has emerged as a major trend in the market with increasing number of enterprises adopting smart lighting solutions. These lighting solutions are capable of sensing movement of people and the number of people in the immediate vicinity and adjust the light accordingly. These smart lighting solutions in conjunction with LEDs, offer about 30% energy saving. Furthermore, governments of various countries are rigorously promoting adoption of smart street lamps owing to the ongoing ‘Smart City’ initiatives. For instance, in India, one of the world’s most modern connected lighting infrastructure that can be remotely monitored has been installed at Naya Raipur (the new capital of Chhattisgarh).
Key companies operating in the global LED Lighting market are Daktronics Inc., OSRAM Licht AG, Hubbell Lighting, Inc., GE Lighting, LLC, Acuity Brands Lighting, Inc., Cree, Inc., Toshiba Lighting and Technology Corporation, Sharp Corporation, Philips Lumileds Lighting, Eaton Corporation (Cooper Industries PLC), and Samsung Electronics Co. Ltd.
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.