Global LED Lighting Market Grows at a Staggering CAGR of 13.4%

Introduction

LED lights tend to be a better solution compared to other lights such as halogen, CFL, and incandescent lights. LEDs are frequently used in both indoor and outdoor settings because they require little energy input while producing intense illumination. LED lighting products use 90% less energy than incandescent light bulbs, such as fluorescent and incandescent lights. As consumers switch to green lighting and become more aware of its benefits, the market for LED products is expected to grow.

Market Dynamics

Upsurge in Construction and Growing Preference for Luxury Drives the Global Market

The need for LED lighting is predicted to rise due to new residential, commercial, and industrial structures. Additionally, it is projected that government bans on incandescent lighting and other incentive programs to promote the use of LED lighting would create new growth prospects for LED lighting makers. For instance, the recent adoption of the new standard in California's Title 24 building code 25, which includes requirements for the use of advanced dimming controls, along with occupancy and daylight sensors in the parking garage, is driving the adoption of LED lighting solutions for parking garage applications.

Attractive Incentives and Rebate Programs Creates Tremendous Opportunities

Many countries have initiated sizable lighting projects to solve energy and environmental issues and are focusing on creating incentives and rebate programs. The world has seen an increase in incentives and subsidies for LED because of its energy efficiency. For instance, China announced a notification of annual financial incentives to encourage LED lighting goods. Incentives and rebate programs for LEDs have been successfully marketed in the US and Canada, and rebates are available for Energy Star-qualified LED bulbs. These government measures are anticipated to boost demand for global LED lighting products and solutions.

Regional Analysis

Asia-Pacific is the most significant global LED lighting market shareholder and is expected to grow at a CAGR of 14.6% during the forecast period. The LED lighting market in the Asia-Pacific area has enormous potential, and consumers are predicted to use these systems as a necessary part of houses with digital appliances. The market growth for LED lighting is further aided by the Asia-Pacific's developing electrical and electronics industry. The region's other artificial lighting alternatives, such as incandescent bulbs, CFL and fluorescent lights, high-pressure sodium lamps, and metal halide lamps, have fallen behind LED lighting during the past few years.

Europe is expected to grow at a CAGR of 11.7%, generating USD 39.79 billion during the forecast period. The rapid expansion of the market is attributed to the increased use of LED lighting in residential settings in countries like Germany, the U.K., and France because of more advanced energy efficiency and cost-effectiveness. Additionally, it is projected that growing government support and initiatives to migrate from incandescent to more energy-efficient LED bulbs will hasten market revenue growth in the countries in the area. For instance, the British government's Green Homes Grant program will help homeowners install energy-efficient LED lighting, which is expected to accelerate market revenue development shortly.

The market in North America is estimated to record a constant revenue CAGR over the projected period due to the growing use of LED streetlights in six American cities. There has been an increase in the adoption of LED lights due to advantages including energy savings, regulating circadian rhythms, prolonged durability, and noise reduction for increased productivity. In addition, the region's high standard of living and growing desire among people to make their houses more inviting and appealing would promote the use of LED lighting and are predicted to drive market revenue development.

Key Highlights

• The global LED lighting market was valued at USD 61.22 billion in 2021. It is projected to reach USD 189.85 billion by 2030, growing at a CAGR of 13.4% during the forecast period (2022-2030). 
• Based on product, the global LED lighting market is bifurcated into lamps and luminaires. The luminaires segment is the highest contributor to the market and is expected to grow at a CAGR of 12.5% during the forecast period.
• Based on lamp type, the global LED lighting market is bifurcated into A-lamps, T-lamps, and others. The A-lamps segment owns the highest market share and is expected to grow at a CAGR of 13.7% during the forecast period.
• Based on luminaires type, the global LED lighting market is bifurcated into street lights, downlights, troffers, and others. The downlights segment is the highest contributor to the market and is expected to grow at a CAGR of 12.1% during the forecast period.
• Based on application, the global LED lighting market is bifurcated into indoor and outdoor. The indoor segment owns the highest market share and is expected to grow at a CAGR of 12.6% during the forecast period.
• Based on end-user, the global LED lighting market is bifurcated into commercial, residential, industrial, and others. The commercial segment is the highest contributor to the market and is expected to grow at a CAGR of 12.8% during the forecast period.
• Asia-Pacific is the most significant global LED lighting market shareholder and is expected to grow at a CAGR of 14.6% during the forecast period.

Competitive Players

1. Acuity Brands LightingInc.
2. Cree Inc. (Ideal Industries Inc.)
3. Dialight
4. Digital Lumens Inc.
5. Ge Current (American Industrial Partners)
6. Hubbell Incorporated
7. Lsi Industries Inc.
8. Panasonic Corporation
9. Signify Holding
10. Zumtobel Group
11. Siteco Gmbh.

Recent Developments

• May 2024 - A new USD 21 million, 1,600 LED lighting system is scheduled to be installed on a famous New Orleans bridge by the end of 2024, a few months before the city hosts Super Bowl LVIII. The Crescent City Connection bridge's lighting system was left broken and partially out of commission in 2021 after three decades of exposure to the weather and Hurricane Ida's gusts. Early this year, the project got underway thanks to a financing collaboration between the City of New Orleans and the state of Louisiana.
• April 2024 - With a new IP65 (Ingress protection rating) waterproof construction that indicates resistance to dust, water, and even snow, Litepanels unveiled their most recent version of the Astra Bi-Color LED panels, which are designed with the weather in mind. With an average CRI/TLCI of 95, the Astra IP Bi-Color panels provide a very high light output.

Segmentation

1. By Product
   1. Lamps
   2. Luminaires
2. By Lamps Type
   1. A-Lamps
   2. T-Lamps
   3. Others
3. By Luminaries Type
   1. Street Lights
   2. Downlights
   3. Troffers
   4. Others
4. By Applications
   1. Indoor
   2. Outdoor
5. By End-User
   1. Commercial
   2. Residential
   3. Industrial
   4. Others