Global LED Lighting Market by End-use (Residential, Commercial), by Application (Outdoor, Indoor), by Product (Lamps, Luminaires) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global LED lighting market was worth USD 50.91 Billion in 2020. It is expected to grow at a compound annual growth rate of 12.5% between 2021 and 2028. The market is growing due to stringent regulations that ban or limit inefficient lighting technologies, as well as government rebates and retrofit programs that encourage the deployment LED lighting. Although LED lighting is more expensive than CFLs, incandescents, or halogen lights, it has a longer service life, higher lumen power, and lower wattage. The market will grow due to the continuing decline in the prices of LED luminaires and smart lighting solutions. These developments, along with the updated energy policies around the globe, will be a major driver for growth.

LEDs are more efficient and reliable than incandescent lights and have a longer lifespan. This will increase their use in indoor and outdoor environments. They are more cost-effective than incandescent lighting, providing approximately 50,000 hours of illumination for a relatively small energy consumption. They are an ideal replacement for incandescent lamps because of their low cost of operation and lower heat losses. Product demand has also been fueled by technological advancements and shift to green lighting.

The U.S., Canada, China and the European Union (EU) have stringent regulations regarding traditional lighting and energy consumption. This is expected to boost product demand during the forecast period. The light-emitting diode lighting market is expected to grow due to the development of energy-efficiency ratings and design standards, such as Comprehensive Assessment System for Built Environment Efficiency in Japan (CASBEE), Building Research Establishment Environmental Assessment Method in the EU (BREEAM), and standards for green constructions in China. The products must meet multiple regulations in the United States, such as Energy Star Program, United Nations Environment Programme, and National Electric Code.

Incentives and rebates offered by governments for the replacement of traditional lamps by LED products are helping to increase the global adoption of LED products. There are lucrative applications for smart illuminations in commercial and industrial areas. They adjust the light by using control zones. The U.S. has adopted schemes to control light. This is in line with increasing energy efficiency and reducing peak power demand.

The Covid-19 pandemic in 2020 disrupted overall market growth. Acuity Brands Lighting, Signify Holdings and Signify Holdings suffered revenue losses due to a decrease in demand, disruptions in supply and distribution, delay in completing construction projects (which help create the need for lighting). The temporary lockdown and partial ban of mobility also led to a decline in the contribution from the commercial and industrial sectors such as manufacturing and retail.

China is both the largest exporter and manufacturer of product components. It has also been a country that has seen a rise in adoption. It was however the first to be affected by Covid-19. This disrupted supply of components around the globe and created a supply-demand gap. The availability of Covid-19 vaccine in 2021 and the decrease in infection rates in 2021 will likely lead to a rebound in growth in the market as businesses resume their operations.

Product Insights

In 2020, the LED luminaires market was dominant and accounted to over 55% global revenue share. The market can be divided into luminaires and lamps based on its product. Commercial and industrial applications are both common for luminaires. The demand for LED luminaires is driven primarily by new installations. This segment includes streetlights and track lights as well as troffers, troffers, troffers, troffers, troffers and suspended pendants that can be used for various purposes. LED luminaires deliver more light per output power.

They are easier for optic designers to control, making them more efficient and allowing them to illuminate larger areas with less light. The U.S. The U.S. Environment Protection Agency (EPA), predicts that LED will be the dominant light bulb technology over the next few years, provided that distributors and retailers promote LED bulbs and increase their awareness. Covid-19 forced LED manufacturers to cancel or modify their offline events. They were however able to launch the products through online conferences.

Due to the growing adoption of LED lamps in developing countries, the segment with the highest CAGR is expected to be the largest. These lamps offer many advantages over incandescent lamps including durability, energy efficiency, and right time stability. They are also available in multiple applications and designs, including reflectors, MR-16 lamps, T-lamps and reflectors. These lamps will be in high demand in commercial and residential applications due to the accelerated regulation roadmaps that aim to eliminate incompetent bulbs.

End-use Insights

In 2020, the commercial segment was the dominant market and accounted more than 52% global revenue share. The commercial segment is driven by the demand for LED troffers, downlights and other lighting products. High-end commercial lighting is mainly used by galleries, museums and other exhibition lighting applications that use reflectors and projectors. The industrial lighting market will be a major customer for high brightness LED lights. These lights must conform to various government lighting regulations and standards. The U.S. Occupational Safety and Health Administration (OSHA), sets lighting standards in the workplace. OSHA standards mandate that light fixtures are covered with protective plates and installed at least 7 feet from the work surface. They also require that exposed wiring and lighting parts be covered.

Residential applications include both portable plug-in fixtures such as floor lamps, pendants and table lamps as well as permanent fixtures such as cabinet lights and under-recessed sconces. In the last few years, the residential market has seen a lot of growth due to the increased adoption of LED-A-type lamps. This is due to lower product prices and the increased subsidies provided by different governments and agencies. The pandemic caused a decline in residential demand. Some vendors reported an increase in prices as a result of increased product manufacturing costs.

Application Insights

Indoors dominated the market, accounting for 68% of the global market's total in 2020. This segment will continue to be dominant throughout the forecast period, thanks to its high adoption of LED lamps as an alternative to incandescent and High-Intensity Discharge(HID) fluorescent lamps. Over the last few years, LED lighting has been more popular in offices, malls, schools, and retail stores.

Airports, corporate campuses and industrial, government and healthcare infrastructure are all outdoor applications. Highways and roadways are also included. Public places such as signs and traffic signals are another example of outdoor applications. Public policy and municipal support can have a profound impact on outdoor product demand. The Climate Group's LightSavers program, which is a government initiative, will likely lead to the replacement of traditional lighting solutions.

Regional Insights

Asia Pacific held the largest market share, exceeding 42% in 2020. It is expected to continue its lead position and grow at the fastest CAGR for the forecast period. The key contributors to regional market growth are Taiwan, Japan, China, and China. This is due to the government initiatives to adopt light-emitting devices, as well as the presence of many market players. Due to the changing lifestyles and increasing population, China, Indonesia and India are among the fastest-developing nations in the region. The region's product demand is being fueled by the APAC construction industry, which is growing rapidly. The pandemic caused delays in residential, commercial and industrial construction projects, which led to a decrease in overall market growth.

Asia Pacific is the largest supplier of LED chips, packages and packaging. There are manufacturing facilities in China Taiwan, South Korea, South Korea and Japan. This is a significant factor in the pricing of LED luminaires. As LED production requires huge capital investments, the debt crisis in Europe has adversely affected demand. The rise in demand for LED lighting has been a major factor in Europe and North America in recent years. This is due to increased government support and increasing use of ultra-modern lighting across many industries. Trade war between the U.S.A and China led to an increase in import duties and eventually, an increase in product prices. This will be a benefit to European manufacturers.

The U.S. is expected to be a major growth driver for overall product demand if it adopts a strong dollar policy. The United States has been a strong advocate for light-emitting diode illumination, with new policies and guidelines relating to the use of LED technology, investments in R&D and extended use in residential, commercial and industrial applications, as well as participation in public-private partnerships that boost local markets. This will likely boost North American regional market growth during the forecast period.

Market Share Insights & Key Companies

The market is competitive and highly concentrated, with the top five companies accounting the largest revenue share. To maintain market share, key players have adopted a variety of strategies to protect their market shares. These include new product development, product line improvements, mergers and acquisitions, as well as product enhancements. Forward integration is a popular trend in the market, with semiconductor manufacturers trying establish themselves as lighting producers.

Light manufacturers, however, are looking for more opportunities via direct selling and building their distributor network. This is essential to increase profitability. This is because these companies purchase low-cost components from Chinese suppliers, and then assemble them at their plants to make higher profits. These companies have been prohibited from purchasing generic components from Chinese suppliers in recent years due to stringent compliance rules. They must also adhere to energy labels.

GE lighting, which is unable economically to continue operating its Ohio, U.S. manufacturing plant, moved its production of Walmart's Great Value lightsbulbs to China amid the news of China shifting its manufacturing facilities. In 2020, revenue was negatively affected by the shortage of workers and disruptions in supply of electronic parts due to the pandemic. Signify Holding and Acuity Brand Lighting have reopened their manufacturing plants and expect positive results by 2021. The following are some of the most prominent players in global LED lighting markets:

• Acuity Brands Lighting Inc.

• Cree Lighting (IDEAL INDUSTRIES INC.)

• Dialight

• Digital Lumens Inc.

• Hubbell

• LSI Industries Inc.

• LumiGrow

• Panasonic Corporation

• Siteco GmbH

• Signify Holding

• Semiconductor Co. Ltd.

• Zumtobel Group Ag

Up Market Research published a new report titled “LED Lighting Market research report which is segmented by End-use (Residential, Commercial), by Application (Outdoor, Indoor), by Product (Lamps, Luminaires), By Players/Companies Acuity Brands Lighting Inc, Semiconductor Co Ltd (Seoul Semiconductor), Cree Lighting (IDEAL INDUSTRIES INC), Hubbell, Siteco GmbH, Signify Holding, Zumtobel Group Ag, LumiGrow, Dialight, Digital Lumens Inc, Panasonic Corporation, LSI Industries Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global LED Lighting Market Report Segments:

The market is segmented by End-use (Residential, Commercial), by Application (Outdoor, Indoor), by Product (Lamps, Luminaires).

LED Lighting Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the LED Lighting Market

Overview of the regional outlook of the LED Lighting Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The LED Lighting Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of LED Lighting Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Residential

                2. Commercial

                1. Outdoor

                2. Indoor

                1. Lamps

                2. Luminaires

9. Market scenario by region, sub-region, and country.
10. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
11. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
12. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the LED Lighting Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the LED Lighting Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.