The Global LED Services Market, By Application (Residential (Home), Public Lighting (outdoor)(Smart Lighting, Street Lighting), Business Lighting (Indoor) (Government and Private)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$ 27.4 million by 2027, exhibiting a CAGR of 11.1% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
An LED or light-emitting diode is a semiconductor device that emits light when an electric current is passed through it. The light is produced when the particles that carry current combine with the semiconductor material. LED lights are available in different colors where the photon energy determines the wavelength emitted light LEDs are more efficient, brighter, more cost-effective, and more lasting than conventional incandescent bulbs. These lights are cost-effective that delivers around 50,000 hours of illumination with a very small amount of energy consumption.
The global LED services market was valued US$ 11.8Mn in 2019 and expected to grow at CAGR of 11.1% over the forecasted period 2019-27.
Proactive support by government and subsidies for LED lighting applications is expected to boost the global LED services market growth over the forecast period
Governments across the globe are encouraging commercial as well as residential consumers by providing incentives and subsidies for installation of LED lightings. As a result of this, LED lightings have witnessed significant demand in the recent past. The government of Japan has launched its ‘21st Century Lighting Project’, and is one of the earliest countries to initiate an LED industry policy. In this project, they have started promoting lighting technologies with the help of a group of LED industry leaders. Furthermore, they have increased market demand by promoting LED standards and offering tax incentives for LED products. By 2020, Japan’s LED lighting market is estimated to reach approx. 70% of the total lighting solutions. Moreover, the government of India has initiated a carbon reduction policy, which has led to replacement of incandescent bulbs. The Indian Government has launched a project called ‘Prakash Path’, under which LED bulbs are distributed for usage. Furthermore, increasing demand for energy-saving equipment is expected to propel the global LED service market over the forecast period.
Increasing demand for IoT-enabled LED lighting in Europe for smart cities and smart homes can provide major growth opportunities
Higher adoption of IoT-enabled LED lighting in smart cities and smart homes is observed in Europe region. By combining advantages of both LED lighting and IoT enabled applications, the region has successfully integrated this trend in the recent years. LED lighting offers many advantages such as reduced energy consumption and higher product life. Growing integration of IoT technologies has led to an increase in use of wireless technologies with enhanced performance of LED lighting solutions. Companies such as Enlighted, and Tridonic are planning to build a standard called “IoT-Ready Alliance”, for lighting fixtures which can be easily upgraded with sensors and connectivity modules after installation.
Concerns regarding Quality and lack of awareness in emerging regions are expected to hinder the global LED services market growth over the forecast period
Low awareness among consumers and inferior quality of LED lightings, especially in emerging regions such as MEA and Asia Pacific are expected to restrict growth of the market. There is still a massive unawareness among consumers in India and China where they prefer incandescent bulbs and CFLs over LED lights. Moreover, there are major issues regarding low quality of LED lightings MEA region, which is hindering adoption of the same. Thus, these factors are expected to restrain growth of the global LED services market in the near future.
Increasing importance and value of lighting projects are attracting greater competition in the lighting sector. Energy Savings Performance Contract is becoming popular and also the preferred business model by customers. In order to adopt this model, companies are required for certain service capabilities or collaborate with other companies so as to gain competitive advantage. This is due to end users are focusing on maximum cost savings and improved efficiency. Moreover, Singapore Green Building Council is launching a program consisting of initiatives and partnerships which would be focusing on reducing Singapore’s lighting energy use, increasing the selection of green building products, and certified industry services.
Rising application of LED lighting in architectural applications is expected to boost regional market growth. Availability of a variety of colors in LED lighting has increased adoption of the same in architectural applications. Although LED usage in architectural applications is expensive than traditional lighting, LED has superiority in energy efficiency flexibility, etc. Moreover, Aldar's headquarters building in Abu Dhabi is the perfect example of architectural lighting, which illuminated by GE’s Tetra Contour LED architectural lighting. Hotels across Middle East are increasingly adopting LED lighting in architectural applications to provide aesthetics and energy efficiency.
The Energy Star program adheres to strict energy-efficient guidelines that are set by the U.S. Environmental Protection Agency (EPA). The criteria were based on the lighting industry standards and test procedures. Light fixtures that have earned Energy Star combine quality design with the high energy efficiency. To qualify for an Energy Star rating light fixtures must.
Key players operating in the global LED services market are Thorlux Lighting, Bright Special Lighting S.A., Cree Inc., LEDVANCE GmbH, KKDC Co., Ltd., Philips Lighting Holding B.V., Global Light LLC, OPPLE Lighting Co., Ltd., Endo Lighting Corp., Ideal Industries, and Reggiani SPA.