LED Lighting Market is Estimated to Witness High Growth Owing to Increase in Green Building Construction and Growing Focus on Energy Conservation
The LED lighting market is estimated to be valued at US$ 91.43 Bn in 2024, exhibiting a CAGR of 11.9% over the forecast period (2024-2031). Rapid urbanization and increasing construction of green buildings across the globe are the key factors driving the growth of the LED lighting market. Furthermore, stringent government regulations regarding energy conservation along with growing consumer preference for energy-efficient lighting solutions are also fueling market expansion.
Market Dynamics:
Growing focus on energy conservation remains a key driver propelling the global LED lighting market forward. LED lights are more energy-efficient compared to traditional lighting sources and can help reduce energy costs significantly over the lifetime of installation. Furthermore, the rising demand for Green Building construction from commercial and residential end-users has also boosted the adoption of LED lighting systems. Green Buildings focuses on using processes and materials that are environmentally responsible and resource-efficient throughout a building's life-cycle. Due to their long lifespan and minimal heat emission, LED lights are considered more sustainable for Green Building projects. Both the drivers are expected to continue supporting market revenues over the forecast period.
Major Market Drivers
Declining LED Prices are Driving Widespread Adoption
One of the biggest drivers of growth in the global LED lighting market has been the significant decline in LED prices over the past decade. As LED manufacturing technology has advanced, economies of scale have kicked in driving down the cost of LEDs dramatically. This has made LED lighting an affordable option for both commercial and residential applications. With LED prices projected to continue their downward trajectory in the coming years, LED lighting adoption is expected to accelerate further across various sectors.
Government Support and Subsidies are Promoting Greener Technologies
Governments around the world have been strongly promoting the adoption of energy-efficient LED lighting through various incentive programs and subsidies. This is being driven by the desire to reduce carbon emissions and transition to more sustainable lighting solutions. Many nations have enacted policies that either ban inefficient lighting technologies or provide rebates and tax credits for LED lighting installations. This government backing is helping boost large-scale LED lighting deployments, contributing significantly to the market growth.
Major Market Restraints
Lack of Standardized Product Testing and Performance Metrics
One challenge holding back the LED lighting market is the lack of standardized testing protocols and uniform performance metrics globally. Different regions and countries currently have varying test procedures and benchmarks to rate LED products. This makes it difficult for lighting manufacturers to produce globally compliant products and hinders cross-border trade. Establishing international standards for product testing, operating life, lumen maintenance, and other metrics could help accelerate LED lighting adoption on a larger scale.
High Initial Investment Costs Compared to Traditional Lighting
While the long-term energy and maintenance savings of LED lighting are substantial, its higher upfront costs relative to traditional lighting technologies continue to be a major restraint. The premium pricing of high-quality LED lights is a roadblock, especially in price-sensitive residential and emerging market segments. As the total cost of ownership of LED lights comes down further with time, this restraint is expected to weaken its influence on the market.
Major Market Opportunities
Growing Emphasis on Smart and Connected Lighting Systems
The integration of LED lights with connectivity and sensor technologies is opening up new growth opportunities. Many cities and companies are embracing smart streetlight and indoor lighting solutions for applications like remote monitoring and management. The demand for smart and IoT-enabled horticulture and aquaculture lighting is also on the rise. The proliferation of smart home devices and controls is catalyzing innovations in networked, software-defined lighting networks.
Rising Renovations and Retrofit Projects
A substantial portion of the global building stock still uses outdated lighting technologies. This provides a big opportunity for retrofitting existing infrastructure with LED solutions. Renovation and retrofit projects offer an easily addressable market for LED lighting suppliers. With their long lifespan and maintenance-free operations, LEDs are increasingly becoming the lighting of choice for commercial retrofits and residential remodeling activities across the world.
Link: https://www.coherentmarketinsights.com/market-insight/led-lighting-market-959
Key Developments:
- In October 2023, Yeelight introduced its latest LED product, the Yeelight Beam. This light features a tabletop-friendly design with an integrated headphone stand, making it a convenient addition to any workspace or living space. The Yeelight Beam is designed for easy setup and can be controlled through a variety of popular smart home platforms, including Apple HomeKit, Amazon Alexa, and Google Home, offering users versatile connectivity options.
- In October 2023, Halonix Technologies, a prominent electrical company in India, introduced the innovative UP-DOWN GLOW LED bulb. This unique lighting solution features both the upper dome and lower stem illuminating in a variety of colors, providing consumers with three switch-enabled modes to create a captivating ambiance in their living spaces.
- In September 2023, Advanced Lighting Technologies, LLC (ADLT) announced the acquisition of LED lighting manufacturer Cree Lighting Inc., along with its subsidiaries Cree Lighting Canada and E-conolight, from IDEAL INDUSTRIES, Inc. The financial terms of the deal were not disclosed. This strategic move allows ADLT to expand its product portfolio and strengthen its position in the rapidly growing LED lighting market.
- In September 2023, Signify, the parent company of the Philips Hue brand, announced the global launch of its Philips Smart LED bulbs. This new product lineup stems from Signify's 2019 acquisition of Wiz, and it is distinguished from the Hue series by the "Wiz Connected" branding featured on its distinctive blue packaging.
- In May 2023, Cyclone Lighting, an established manufacturer of outdoor luminaires under the Acuity Brands portfolio, announced the debut of its Elencia luminaire. The Elencia features high-performance optics and an updated, modern lantern styling that provides an upscale aesthetic to outdoor post-top illumination.
Key Players:
Acuity Brands Lighting Inc., Cree Lighting, Dialight, Digital Lumens Inc., GE Lighting, Hubbell Incorporated, LumiGrow, LSI Industries Inc., Osram Licht AG, Panasonic Corporation, Philips Lighting, Samsung Electronics, Siteco GmbH, Toshiba Lighting & Technology Corporation, Zumtobel Group AG
