LED Lighting Market Value Anticipated To Reach US$ 98.6 Billion By 2027
The Global LED Lighting Market is expected to grow at a CAGR of around 13.5% from 2020 to 2027 and reach a market value of over US$ 98.6 Bn by 2027.
The Asia Pacific region is expected to have the largest market share in the global LED lighting market. Furthermore, Asia Pacific maintains its fastest growing CAGR throughout the forecast period. With manufacturing facilities in China, Taiwan, South Korea, and Japan, Asia Pacific is recognized as the major supplier of LED chips and packages and thus plays a decisive role in the pricing of LED luminaries. The European debt crisis harmed demand for LEDs, as their production requires massive capital investments. Due to government support and the growing use of ultra-modern lighting in a variety of industries, Europe and North America have seen a surge in demand for LED lighting in recent years.
The trade war between the United States and China resulted in an increase in import duties and, as a result, an increase in overall product prices. This factor should benefit European manufacturers due to this circumstance. The ongoing infrastructure modernization projects in developing economies such as China and India, where governments have approved the construction of several smart cities, can be attributed to the market's rapid growth in APAC.
The global LED lighting market is segmented based on product, application, and end-user. By product, the market is bifurcated into lamps and luminaries. Lamps are further sub segmented as A-lamps, T-lamps, and others. Luminaries are further sub segmented as streetlights, downlights, troffers, and others. Based on application, the market is classified into indoor and outdoor. Further, end-user is segregated as commercial, residential, industrial, and others.
According to end-user, the commercial segment will dominate the global LED lighting market. Recent advancements in light-emitting diode technology have allowed LED lighting products to effectively penetrate the commercial lighting market, which has enormous growth potential. Commercial buildings, which include offices, stores, restaurants, hospitals, and schools, account for nearly 20% of total energy consumption in the United States, with lighting accounting for 38% of this total. Technical Consumer Products, Inc., for example, offers a selectable commercial recessed downlight with color temperature and wattage options, making it suitable for a variety of corporate settings. Overall, rapid urbanization and increased construction activity in various countries' commercial sectors are expected to fuel the studied market demand over the forecast period.
Some of the leading competitors are Acuity Brands Lighting Inc., Cree Lighting (IDEAL INDUSTRIES INC.), Dialight plc, Digital Lumens Inc., Hubbell Incorporated, LSI Industries Inc., LumiGrow, and among others.