LED Lighting Market Set to Reach USD 135.36 Billion, at a 11.20% CAGR By 2030 – Market Research Future (MRFR)
New York, USA, June 25, 2023 (GLOBE NEWSWIRE) — Market Research Future (MRFR) has published a research report titled “LED Lighting Market” which provides insights into the deployment mode, installation type, product type, distribution channel, end-use application, and region of the market. The report predicts that the LED lighting market will grow at a CAGR of 11.20% between 2022 and 2030, reaching a market size of approximately USD 135.36 billion by the end of 2030.
Key Players in the LED Lighting Market
Prominent players in the global LED lighting market, as profiled in the report, include Phillips Lighting Holding B.V. (Netherlands), GE Lighting (US), Samsung Electronics (South Korea), Sharp Corporation (Japan), and Eaton Corporation (Ireland).
Market Opportunities and Drivers
The report highlights several factors driving the growth of the LED lighting market. One key driver is the cost savings associated with LED lighting. While LED bulbs had higher upfront costs compared to traditional lighting solutions, advancements in technology and economies of scale have significantly reduced the costs over time. LED bulbs last longer, require fewer replacements, and consume less energy, resulting in substantial cost savings over their lifetime. This has made LEDs a preferred choice for individuals and businesses.
The market also presents opportunities due to technological advancements in LED lighting. Ongoing developments in LED technology have led to improved efficacy, performance, and cost-effectiveness of LED lighting devices. Advancements in chip design, heat management, and optics have enhanced the overall quality of light output, including color rendering and dimmability. Integration of smart lighting controls and connection elements has expanded the possibilities and applications of LED lighting systems.
Challenges and Restraints
Despite the growth prospects, the LED lighting market faces certain challenges and restraints. The higher upfront cost of LED lighting compared to traditional lighting options, coupled with misconceptions or lack of awareness about LED technology and compatibility issues, may act as restraints over the forecast period.
Market Segmentation
The global LED lighting market is segmented based on type, product type, distribution channel, and end-use application. By type, new installations are expected to lead the market, driven by the increasing demand for energy-efficient lighting solutions in new building projects. The report cites the example of Cochin Smart Mission Limited, which has planned a significant project to install LED lighting in new building sites. The market is further segmented by product type, with luminaries projected to dominate the market due to the widespread use of LED illumination in high bays, troffers, track lighting, and street lighting fixtures.
Regional Analysis
According to the report, Asia Pacific accounted for the highest revenue share (43.61%) in 2022 and is expected to maintain steady growth throughout the forecast period. This is attributed to the energy-saving initiatives of local governments in emerging countries and the rapid infrastructure development in the region. The expanding construction industries in countries such as Japan, China, and India, along with numerous manufacturers focusing on new product releases, will support the growth of the LED lighting market in the region.
Impact of COVID-19
The COVID-19 pandemic caused supply chain disruptions, travel restrictions, and temporary closures of production sites, leading to delays in LED lighting manufacturing and delivery. Lockdown measures resulted in decreased activity or temporary closures in commercial and industrial sectors, while the residential sector saw increased demand for LED lighting as people spent more time at home. The pandemic highlighted the importance of sustainability and energy efficiency, further driving the demand for LED lighting solutions. Additionally, the adoption of smart lighting technology accelerated as remote work and social isolation became prevalent.
Conclusion
The LED lighting market is poised for significant growth, with a projected CAGR of 11.20% between 2022 and 2030. Factors such as cost savings, technological advancements, and the increasing adoption of LED lighting in indoor and outdoor construction activities are driving the market’s expansion. However, challenges such as higher upfront costs and lack of awareness may hinder market growth. The Asia Pacific region is expected to lead the market due to energy-saving programs and infrastructure projects in emerging countries. The COVID-19 pandemic has both positively and negatively impacted the market, with increased demand for residential lighting and accelerated adoption of smart lighting technology.
