LED Lighting Market Developments 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
Market Size Value in US$ 57.5 Billion in 2021 Market Size Value by US$ 117.1 Billion by 2028 Growth rate CAGR of 10.7% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2021
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LED Lighting Market: Strategic Insights
| Market Size Value in | US$ 57.5 Billion in 2021 |
| Market Size Value by | US$ 117.1 Billion by 2028 |
| Growth rate | CAGR of 10.7% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2021 |
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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 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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product Type, Application, End-user, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, UK, Canada, Germany, France, Italy, Australia, Russia, China, Japan, South Korea, Saudi Arabia, Brazil, Argentina
Frequently Asked Questions
Supportive government regulations are the major factors that propel the global LED lighting market.
Growing technological advancement to play a significant role in the global LED lighting market in the coming years.
The key players holding majority shares in the global LED lighting market are Cree Lighting, Dialight plc, General Electric Lighting, Nichia Corporation, OSRAM Licht AG, Signify N.V., Samsung Electronics, Sharp Corporation, EnviroLux, and Zumtobel Group AG.
Asia Pacific dominated the LED lighting market in 2023.
The global LED lighting market is estimated to register a CAGR of 10.70% during the forecast period 2023–2031.
The global LED lighting market is expected to reach US$ 158.91 billion by 2031.
1 Introduction
1.1 Scope of Study
1.2 The Insight Partners Research Report Guidance
2 Key Takeaways
3 LED Lighting Market Landscape
3.1 Market Overview
3.2 Market Segmentation
3.2.1 LED Lighting Market - By Type
3.2.2 LED Lighting Market - By End-User
3.2.3 LED Lighting Market - By Region
3.2.3.1 By Countries
3.3 PEST Analysis
3.3.1 North America - PEST Analysis
3.3.2 Europe - PEST Analysis
3.3.3 Asia Pacific - PEST Analysis
3.3.4 Middle East and Africa - PEST Analysis
3.3.5 South America - PEST Analysis
4 LED Lighting Market - Key Industry Dynamics
4.1 Key Market Drivers
4.2 Key Market Restraints
4.3 Key Market Opportunities
4.4 Future Trends
4.5 Impact Analysis
5 LED Lighting Market Analysis- Global
5.1 Global LED Lighting Market Overview
5.2 Global LED Lighting Market Forecasts and Analysis
6 LED Lighting Market Revenue and Forecasts to 2028 - Type
6.1 Overview
6.2 Type Market Forecasts and Analysis
6.3 Indoor Lighting Market
6.3.1 Overview
6.3.2 Indoor Lighting Market Forecasts and Analysis
6.4 Outdoor Lighting Market
6.4.1 Overview
6.4.2 Outdoor Lighting Market Forecasts and Analysis
7 LED Lighting Market Revenue and Forecasts to 2028 - End-Users
7.1 Overview
7.2 Industrial
7.2.1 Overview
7.2.2 Industrial Market Forecasts and Analysis
7.3 Commercial
7.3.1 Overview
7.3.2 Commercial Market Forecasts and Analysis
7.4 Residential
7.4.1 Overview
7.4.2 Residential Market Forecasts and Analysis
7.5 Government Bodies
7.5.1 Overview
7.5.2 Government Bodies Market Forecasts and Analysis
8 LED Lighting Market Revenue and Forecasts to 2028 - Geographical Analysis
8.1 North America
8.1.1 North America LED Lighting Market Overview
8.1.2 North America LED Lighting Market Forecasts and Analysis
8.1.2.1 North America Market Forecasts and Analysis - By Countries
8.1.2.1.1 US market
8.1.2.1.2 Canada market
8.1.2.1.3 Mexico market
8.1.2.2 North America Market Forecasts and Analysis - By Types
8.1.2.3 North America Market Forecasts and Analysis - By End-users
8.2 Europe
8.2.1 Europe LED Lighting Market Overview
8.2.2 Europe LED Lighting Market Forecasts and Analysis
8.2.2.1 Europe Market Forecasts and Analysis - By Countries
8.2.2.1.1 France market
8.2.2.1.2 Germany market
8.2.2.1.3 Italy market
8.2.2.1.4 Spain market
8.2.2.1.5 UK market
8.2.2.2 Europe Market Forecasts and Analysis - By Types
8.2.2.3 Europe Market Forecasts and Analysis - By End-users
8.3 Asia pacific (APAC)
8.3.1 Asia Pacific LED Lighting Market Overview
8.3.2 Asia Pacific LED Lighting Market Forecasts and Analysis
8.3.2.1 Asia Pacific Market Forecasts and Analysis - By Countries
8.3.2.1.1 Australia market
8.3.2.1.2 China market
8.3.2.1.3 India market
8.3.2.1.4 Japan market
8.3.2.2 Asia Pacific Market Forecasts and Analysis - By Types
8.3.2.3 Asia Pacific Market Forecasts and Analysis - By End-users
8.4 Middle East and Africa (MEA)
8.4.1 Middle East and Africa LED Lighting Market Overview
8.4.2 Middle East and Africa LED Lighting Market Forecasts and Analysis
8.4.2.1 Middle East and Africa Market Forecasts and Analysis - By Countries
8.4.2.1.1 South Africa market
8.4.2.1.2 Saudi Arabia market
8.4.2.1.3 UAE market
8.4.2.2 Middle East and Africa Market Forecasts and Analysis - By Types
8.4.2.3 Middle East and Africa Market Forecasts and Analysis - By End-users
8.5 South America (SAM)
8.5.1 South America LED Lighting Market Overview
8.5.2 South America LED Lighting Market Forecasts and Analysis
8.5.2.1 South America Market Forecasts and Analysis - By Countries
8.5.2.1.1 Brazil market
8.5.2.2 South America Market Forecasts and Analysis - By Types
8.5.2.3 South America Market Forecasts and Analysis - By Applications
8.5.2.4 South America Market Forecasts and Analysis - By End-users
9 Industry Landscape
9.1 Mergers & acquisitions
9.2 Market Initiatives
9.3 New developments
9.4 Investment scenarios
10 Competitive Landscape
10.1 Competitive Product mapping
10.2 Market Positioning/ Market Share
11 LED Lighting Market, Key Company Profiles
11.1 Philips Lighting
11.1.1 Key Facts
11.1.2 Business Description
11.1.3 Financial Overview
11.1.4 SWOT Analysis
11.1.5 Key Developments
11.2 Sharp Electronics Corporation
11.2.1 Key Facts
11.2.2 Business Description
11.2.3 Financial Overview
11.2.4 SWOT Analysis
11.2.5 Key Developments
11.3 Cree Inc.
11.3.1 Key Facts
11.3.2 Business Description
11.3.3 Financial Overview
11.3.4 SWOT Analysis
11.3.5 Key Developments
11.4 Nichia Corporation
11.4.1 Key Facts
11.4.2 Business Description
11.4.3 Financial Overview
11.4.4 SWOT Analysis
11.4.5 Key Developments
11.5 General Electric Lighting
11.5.1 Key Facts
11.5.2 Business Description
11.5.3 Financial Overview
11.5.4 SWOT Analysis
11.5.5 Key Developments
11.6 Samsung Electronics
11.6.1 Key Facts
11.6.2 Business Description
11.6.3 Financial Overview
11.6.4 SWOT Analysis
11.6.5 Key Developments
11.7 OSRAM Licht AG
11.7.1 Key Facts
11.7.2 Business Description
11.7.3 Financial Overview
11.7.4 SWOT Analysis
11.7.5 Key Developments
11.8 Panasonic Corporation
11.8.1 Key Facts
11.8.2 Business Description
11.8.3 Financial Overview
11.8.4 SWOT Analysis
11.8.5 Key Developments
11.9 Cooper Industries, Inc.
11.9.1 Key Facts
11.9.2 Business Description
11.9.3 Financial Overview
11.9.4 SWOT Analysis
11.9.5 Key Developments
11.10 Toshiba International Corporation
11.10.1 Key Facts
11.10.2 Business Description
11.10.3 Financial Overview
11.10.4 SWOT Analysis
11.10.5 Key Developments
12 Appendix
12.1 About The Insight Partners
12.2 Glossary of Terms
12.3 Research Methodology
The List of Companies
1. Philips Lighting
2. Sharp Electronics Corporation.
3. Cree Inc.
4. Nichia Corporation
5. General Electric Lighting
6. Samsung Electronics
7. OSRAM Licht AG
8. Panasonic Corporation
9. Cooper Industries, Inc.
10. Toshiba International Corporation
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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