Led Lighting Market Size, Share, Trends, Growth and Demand Forecast to 2023
The global LED lighting market is likely to reach $70,240 million by 2023, growing at a CAGR of 12.6% during the forecast period. LED lighting solutions overcome the built-in constraints of traditional lighting solutions such as high-intensity discharge (HID) lamps, compact fluorescent lamp (CFL) and plasma lamps. LED lighting offers numerous benefits over conventional lighting solutions, including energy-efficiency, longer life span and durability. LEDs are presently being used for wide range of applications, such as residential lighting, commercial lighting, industrial lighting, street lighting and public-places lighting. The continuous fall in LED price has led to positive forecasts for the penetration of LED lighting in several application segments.
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Based on product type, luminaire is expected to be the major product type and it is also expected to grow at a faster rate, as compared to the lamp market, during the forecast period. The growth of luminaire market can be attributed to the increasing infrastructural activities across the globe. Based on installation type, the global LED lighting market is classified into new installation and retrofit, where new installation is expected to contribute higher revenue to the market. However, retrofit installation is expected to register faster growth during 2017-2023. Increased replacement of conventional lamps with energy-efficient light sources, such as LED lamps, is the key factor contributing to the advancement of the market for retrofit installation.
Between indoor and outdoor lighting, the market for indoor lighting is estimated to represent larger revenue in 2017 to the global LED lighting market. However, outdoor lighting application segment is expected to experience higher growth on account of growing necessity for enhancing visibility on roads. The safety of drivers, riders and pedestrians has been emerging as an utmost concern for the local authorities in several countries, which is expected to fuel the demand for improved lighting systems on roads. The ongoing transformation and infrastructure expansion projects will further lead to the surge in demand for outdoor LED lightings. The features associated with outdoor LED lightings such as less energy consumption and cost-effectiveness are also contributing towards their growth across the globe.
In terms of regional split, Asia-Pacific (APAC) has been the largest LED lighting market, and it is further forecasted to contribute largest revenue to the global market. Backed by swift penetration of LED lighting in developing economies such as China and India, Asia-Pacific has several underpenetrated markets for LED lighting, which may be the areas of opportunity. Moreover, Asia-Pacific has emerged as a hub for major original equipment manufacturers (OEMs) for miscellaneous lighting products, which makes it a booming LED market. For instance, China has been the largest revenue contributor to the global lighting industry, accounting for over 40% of the global production. In addition, investment in research and development to launch new LED products for several applications in the emerging countries of Asia-Pacific, including Taiwan, Vietnam and South Korea, is the major factor propelling the growth of the LED lighting market in the region.
Europe been the second largest LED lighting market, and is further expected to hold its position throughout the forecast period. Stringent government policies regarding bans of inefficient lighting and lowering down the energy consumption, are anticipated to back the industry requirement in the region, over the forecast period.
The key factors propelling the growth of global LED lighting market include increasing adoption of energy efficient lighting solutions, declination in prices of LEDs and modernization and development of infrastructure. LEDs offer several advantages over many conventional lighting technologies in terms of energy efficiency, lifetime, versatility, and color quality and cost efficiency. Owing to this, their penetration is continuously increasing in the residential, commercial and industrial lighting applications.
The global LED lighting market is highly fragmented due to the presence of large number of regional and international players across the globe. Due to the fragmented nature of the market, the competition among the global and regional players is high. It has also been observed that several large players are losing their market share owing to the competition posed by new entrants, especially from China. Some of the major companies operating in the global LED lighting market include Phillips Lighting N.V., General Electric Company, OSRAM Licht AG, Cree, Inc., Eaton Corporation Plc, Virtual Extension, Dialight plc, Zumtobel Group AG, Samsung Electronics Co. Ltd. and Cree Inc.