Global LED Lighting Market – Industry Trends and Forecast to 2031

LED Lighting Market Analysis and Size

The LED lighting market has experienced significant growth in recent years and is expected to continue expanding rapidly. One of the key drivers of this growth is the increasing demand for energy-efficient lighting solutions. LED lights consume significantly less energy than traditional lighting technologies, making them popular for residential and commercial applications. Another factor driving the growth of the LED lighting market is the growing trend towards smart lighting solutions. LED lights can be easily integrated with smart control systems, allowing users to remotely control lighting settings, adjust brightness levels, and even change colors. This flexibility and convenience have made smart LED lighting systems increasingly popular in smart homes and commercial buildings.

The global LED lighting market size was valued at USD 71.86 billion in 2023 and is projected to reach USD 202.13 billion by 2031, with a CAGR of 13.80% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detaiLED and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

LED Lighting Market Dynamics

LED lighting stands for Light Emitting Diode lighting. It is a type of lighting technology that uses light-emitting diodes as a illumination source. LEDs are semiconductor devices that emit light when an electric current passes through them. LED lighting is known for its energy efficiency, long lifespan, and durability compared to traditional incandescent and fluorescent lights.

Drivers

• Energy Efficiency Initiatives

LED lights are increasingly being embraced due to their significantly lower energy consumption compared to traditional lighting solutions. This results in a substantial decrease in overall energy expenses for both consumers and businesses. This is particularly used in the commercial and industrial sectors, where lighting accounts for a significant portion of energy consumption. By switching to LED lighting, companies can reduce their carbon footprint and realize substantial cost savings over the lifespan of the LED fixtures, making them a highly attractive investment for energy-conscious organizations and driving the market growth.      

• Government Regulations and Incentives 

Many governments worldwide have introduced stringent energy efficiency standards and regulations, requiring the phasing out of inefficient lighting technologies and the adoption of more energy-efficient alternatives such as LEDs. In addition to regulations, governments also offer various incentives, including rebates and tax credits, to encourage consumers and businesses to switch to LED lighting. These incentives help reduce the upfront cost of LED fixtures and act as a strong motivator for adoption, driving market growth and accelerating the transition towards more sustainable lighting solutions.

Opportunities

• Rapid Urbanization 

As more people move to urban areas, there is a growing demand for lighting solutions in residential, commercial, and industrial sectors. With its energy efficiency, long lifespan, and environmental benefits, LED lighting is becoming the preferred choice for urban lighting needs. Cities are increasingly turning to LED street lights, office buildings are adopting LED fixtures for their efficiency and longevity, and industrial facilities are benefiting from the durability and cost-effectiveness of LED lighting. This is expected to continue as urbanization rates rise, creating opportunities for the market.                    

• Infrastructure Development    

Infrastructure projects, such as the construction of highways, airports, and public spaces, require reliable and efficient lighting solutions, making LED lighting a natural choice. LED lights provide numerous benefits for infrastructure projects, such as reduced energy usage, extended lifespan, and improved lighting quality. Governments and private investors increasingly recognize these benefits and are integrating LED lighting into their infrastructure development plans. The LED lighting market is poised for growth due to significant investments in infrastructure development worldwide.

Restraints/Challenges

• Quality Concerns

Despite the widespread adoption of LED lighting, concerns regarding the quality and reliability of some LED products persist, impacting consumer confidence. One major concern is the issue of color consistency, where LEDs may produce light with varying color temperatures or hues, leading to inconsistency in lighting quality. In addition, some LED products may suffer from flickering or poor dimming performance, affecting the overall user experience and hindering market growth.   

• Supply Chain Disruptions

The LED lighting market is susceptible to supply chain disruptions, which can impact the availability and pricing of LED lighting products. Disruptions in the supply chain, such as raw material shortages, transportation delays, or logistics challenges, can lead to delays in the production and delivery of LED products. These disruptions can result in increased lead times and higher costs for manufacturers, which may ultimately be passed on to consumers, which can challenge market growth.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the LED lighting market contact data bridge market research for an analyst brief, our team will help you take an informed market decision to achieve market growth.

Recent Development

• In October 2023, YEELIGHT unveiled its latest LED product, The Yeelight Beam, which boasts a tabletop-style design incorporating a headphone stand. This light is designed for easy setup and can be conveniently controlled using various smart control applications, including Apple HomeKit, Amazon Alexa, and Google
• In October 2023, Halonix Technologies, an electric company, launched the UP-DOWN GLOW LED bulb in India, featuring three switch-enabled modes. This unique light illuminates in multiple colors, enhancing the consumer's lighting experience with its dome and stem that glow in different hues
• In September 2023, US LED, a leading LED lighting provider, introduced the Right Choice series of outdoor LED luminaires to enhance the user's sightseeing experience. These LED lights are designed with contractor-friendly features such as trunnion mount, direct pole mount, and adjustable slip fitter, making installation and adjustment hassle-free

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

LED Lighting Market Scope

The market is segmented on the basis of product, device configuration, technology, distribution channel, application, and end-use. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product

• Lamps
• Luminaires

 Device Configuration

• Pinned
• Chip on Board
• Surface-mounted
• Others

 Technology

• Basic
• High Brightness
• Organic Light-Emitting Diode (OLED)
• Ultra Violet
• Polymer

Distribution Channel

• Direct Sales
• Wholesale/Retail

 Application

• Indoor
• Outdoor

End-Use

• Commercial
• Residential
• Industrial
• Others

LED Lighting Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by country, product, device configuration, technology, distribution channel, application, and end-use as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

Asia-Pacific is expected to dominate and experience significant growth in the market due to factors such as urbanization and the development of infrastructures such as smart cities and economic corridors. This growth is expected to continue, fueled by an increase in the construction of smart homes in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and LED Lighting Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• Signify Holding (Netherlands)
• Digital Lumens, Incorporated (U.S.)
• OSRAM Gmbh (Germany)
• General Electric (U.S.)
• Toshiba Corporation  (Japan)
• Eaton (Ireland)
• Koninklijke Philips N.V. (Netherlands)
• Cree LED (U.S.)
• EVERLIGHT ELECTRONICS CO. LTD. (Taiwan)
• Lumigrow (U.S.)
• Samsung (South Korea)
• Savant Systems Inc. (U.S.)
• Syska (U.S.)
• Sharp Corporation (U.S.)
• Dialight (U.K.)
• Zumtobel Group (Austria)
• Illumitex Inc, (U.S.)

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