LED Lighting Market Strategies, Top Players, Growth Opportunities, Analysis and Forecast by 2031

The LED Lighting Market size is projected to reach US$ 158.91 billion by 2031 from US$ 70.46 billion in 2023. The market is expected to register a CAGR of 10.70% during 2023–2031. Growing technological advancement is likely to remain a key trend in the market.

LED Lighting Market Analysis

Growing construction activities worldwide, along with supportive government initiatives, are the major factors fueling the growth of the LED lighting market. Additionally, as long-term LED use provides users with a positive ROI because these lights require around 90% less power than incandescent bulbs and nearly half the energy of fluorescent lights, its demand is increasing globally, which is further boosting the growth of the market. Furthermore, as LED lights are dimmable, run on low voltage, and interface easily with occupancy sensors, it is an ideal solution for the Internet of Things. Connecting to the Internet of Things helps in real-time monitoring and provides the ability to turn lights on and off using smart controls, which helps achieve energy efficiency and reduces utility costs.

LED Lighting Market Overview

LED lighting has a long life when compared with traditional lights. These bulbs can last up to 50,000 hours, which is around 50 times more than standard incandescent bulbs. In addition, LED lighting provides superior light control. Smart systems enable the user to control the lights remotely, help them sync the lights with the weather, and even help to change the color of the light to match the circadian rhythm. Thus, the growing technological advancement in the lighting system is expected to create an opportunity for the growth of the LED lighting market in the forecasted period.

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LED Lighting Market: Strategic Insights

LED Lighting Market

• Market Size 2023
  US$ 70.46 Billion
• Market Size 2031
  US$ 158.91 Billion

Market Dynamics

GROWTH DRIVERS

• Supportive Government Regulations

FUTURE TRENDS

• Growing Adoption of Environment-Friendly Lighting

OPPORTUNITIES

• Growing Technological Advancement

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Product Type

• Lamps
• Luminaires

Application

• Indoor Lighting
• Outdoor Lighting

End-user

• Industrial
• Commercial
• Residential
• Government Bodies

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LED Lighting Market Drivers and Opportunities

Supportive Government Regulations

The governments of various countries across the world have mandated several regulations to use LEDs, which is one of the major factors boosting the market growth. For instance, in April 2022, the Energy Department under President Biden passed two new rules. The first rule expands the definition of general service lamps (GSLs) and the second rule bans the sale of incandescent bulbs that produce less than 45 lm/W, effectively banning the sale of new incandescent bulbs. Thus, such rules and regulations by the government are increasing the adoption of LED lighting worldwide.

Growing Adoption of Environment-Friendly Lighting

As LED lights are up to 80% more energy efficient than any other lighting, their demand is increasing in the market. In addition, 95% of the energy they produce is converted to light, which also eliminates the need for toxic chemicals like mercury in their structure, which is harmful to the environment, making it more environmentally friendly than other lights. Thus, the rising adoption of environment-friendly lighting is further expected to fuel the growth of the LED lighting market in the forecasted period.

LED Lighting Market Report Segmentation Analysis

Key segments that contributed to the derivation of the LED lighting market analysis are product type, application, and end-user.

• Based on product type, the LED lighting market is segmented into lamps and luminaires. The lamps segment is anticipated to witness significant growth in the forecasted period.
• Based on application, the market is segmented into indoor lighting and outdoor lighting. The indoor lighting segment is anticipated to witness significant growth in the forecasted period.
• Based on end-user, the market is segmented into industrial, commercial, residential, and government bodies. The commercial segment is anticipated to witness significant growth in the forecasted period.

LED Lighting Market Share Analysis by Geography

The geographic scope of the LED lighting market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

Asia Pacific is anticipated to witness significant growth in the forecasted period. The region is witnessing tremendous growth in the construction industry. China is one of the largest construction markets worldwide, and the country is expected to witness a rise in its construction activities. For instance, in 2021, China’s building construction completion value totaled US$ 1.25 trillion (CNY 7.94 trillion), where residential construction accounted for 63% of the total building construction, and the rest was mostly office buildings and factories. In addition, the share of local government funding to infrastructure construction activity rose to 39% in 2022 from 18% in 2021. Furthermore, according to Design Build Network, investment in infrastructure increased by 7.4% between January and July 2022. In September 2022, China issued US$ 29 billion in special loans to help developers finish stalled housing projects. Thus, such growing construction activities are expected to fuel the market growth in the region.

LED Lighting Market Market Report Scope

LED Lighting Market News and Recent Developments

The LED lighting market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the LED lighting market are listed below:

• Nichia, the world’s largest LED manufacturer and inventor of high-brightness blue and white LEDs, launched a full-color RGB SMD LED with a lens aimed at contributing to a more environmentally friendly society. The NSSM237B is an innovative full-color RGB SMD LED with a lens designed for outdoor large-scale displays, realized by combining technologies of through-hole LEDs and SMD full-color LEDs. (Source: Nichia, Press Release, 2024)
• Signify launched its Ultra Efficient LED lighting solutions. The products launched include a range of A-class MASTER LED bulbs and MASTER LEDtubes. The Ultra Efficient product lineup is top of the class in relation to the stricter energy labeling under the Ecodesign Regulation and the Energy Labelling Regulation. Thanks to this technological breakthrough, the new products are the first in a range of new Philips lighting, meeting the highest level in the new energy labeling legislation. Also, with energy savings of up to 60% compared with standard LED lamps and up to 3.5× longer lifetime, the Ultra Efficiency range is the perfect choice to help customers tackle the mounting pressure to lower carbon footprint in the global energy crisis. (Source: Signify, Press Release, 2022)

LED Lighting Market Report Coverage and Deliverables

The “LED Lighting Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• LED lighting market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• LED lighting market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• LED lighting market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the LED lighting market
• Detailed company profiles