April 20, 2024
LED Lighting Market

LED Lighting Market Embraces Trends Towards Energy Efficient Lighting

The LED lighting market is growing rapidly owing to rising demand for energy efficient lighting solutions globally. LED or light-emitting diode is a semiconductor device that emits light when an electric current passes through it. LED lights offer various advantages over conventional lighting sources such as long lifespan, high durability, compact design, low power consumption and resistance to vibration. With increased awareness about energy conservation across both residential and commercial sectors, LED lights have emerged as an attractive alternative. They significantly reduce energy costs and carbon footprint compared to incandescent bulbs and CFL lights. Rapid urbanization and rising spending on green construction is further driving large scale adoption of LED lighting in commercial infrastructures like offices, malls and hotels.

The Global LED lighting market is estimated to be valued at US$ 730.4 Bn in 2024 and is expected to exhibit a CAGR of 4.3% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Global LED Lighting Market Size are HP Inc., Dell Technologies Inc., Lenovo Group Limited, Acer Inc., Apple Inc. Major players are investing heavily in R&D to develop innovative LED lighting solutions and expanding their product portfolios. They are also adopting strategies like mergers and acquisitions to consolidate their market presence.

Rising environmental awareness and push for energy efficient technologies has fueled demand for LED lights globally. Various government policies and incentives promoting use of LED lights over conventional lamps are amplifying their adoption. Rapid growth of construction industry especially in developing economies is another key factor boosting uptake of LED lighting.

Geographical expansion into developing markets offers significant headroom for growth. Major brands have strengthened distribution channels in Latin America, Middle East, Africa and Asia Pacific to tap the vast potential. Consistent decline in LED prices is also making them more affordable for mass consumers in price sensitive markets.

Market key trends

Smart andconnected lighting is emerging as a major trend in LED lighting market. LED lights integrated with sensors and WiFi/Bluetooth capabilities allow remote monitoring and controls. They can be operated through mobile apps or voice assistants like Alexa and Google Home. This offers conveniences like automated on/off lighting based on time of day, occupancy or ambient lighting conditions. The trend is being adopted widely across offices, malls, educational institutions and smart homes. Rapid digitization and proliferation of IoT devices are fueling demand for more intelligent LED lighting solutions.

Porter’s Analysis

Threat of new entrants: High capital requirements for manufacturing and brand building pose entry barriers for new companies.

Bargaining power of buyers: Buyers have high bargaining power due to availability of numerous product options from various brands.

Bargaining power of suppliers: Suppliers of LED chips and components have moderate bargaining power due to lack of integration of several suppliers.

Threat of new substitutes: Threat of new substitutes is low as LED lighting provides energy efficiency and sustainability advantages over traditional lighting sources.

Competitive rivalry: Intense competition exists among established LED lighting manufacturers to gain market share.

Geographical Regions

Asia Pacific dominated the global LED lighting market in terms of value in 2024 due to high consumption in China, Japan and South Korea. China alone accounted for over 50% share due to large production facilities and government support for energy efficient technologies.

The LED lighting market in Middle East and Africa is expected to grow at the fastest rate during the forecast period. Government initiatives for infrastructure development and focus on energy savings will drive market growth in the region. Replacement of conventional lighting with LED systems in commercial buildings and streets is increasing in African countries.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it