Global LED Lighting Market Analysis, Drivers, Restraints, Opportunities, Threats, Trends, Applications, and Growth Forecast to 2028

LED Lighting Market: Overview

The LED Lighting Market was valued at $63.7 billion in 2021 & is projected to reach $165.9 billion by 2028. It is expected to grow at a 13.7% CAGR between 2021 and 2028.

In the LED Lighting Market, Light Emitting Diode (LED) is a semiconductor device that generates light through the electroluminescence process. The luminous efficiency of LED lighting products is 90% higher than that of incandescent bulbs.

LEDs are integrated into bulbs and lamps used in general lighting applications. The small size of LEDs provides unique design opportunities compared to traditional lighting solutions. In addition, LED lighting is more efficient, versatile, and has a longer lifespan.

LED lights are used for various applications, including night lighting, artistic lighting, and outdoor lighting. These lights are also commonly used in the electronics and automotive industries.

Global LED Lighting Market Revenue Outlook:

The Global LED Lighting Market was valued at US$ 60.50 Bn in 2020 and is projected to register а САGR of 10.68% by 2031.

Nonetheless, various industry players in the global LED lighting market are now increasing their focus on the establishment of successful collaborations, acquisitions, and joint venture activities as a means to enhance their respective customer bases.

In doing so, these players are also increasing their supply capabilities to meet customer requirements on a local and global scale.

This factor, paired with promising industrialization prospects in developing economies of the Asia-Pacific region, such as China, India, Taiwan, Indonesia, etc., are expected to create massive business opportunities for key players over the forecast period.

What factors are Driving Demand for LED lighting?

Increasing demand for LED lights from residential, commercial, and industrial sectors, owing to its benefits over traditional lights such as improved energy efficiency, low heat emission, cost-saving, longer service life, nanosecond switching, etc., is expected to fuel the revenue growth for this target market.

In addition, technological developments in the field of electronics, automotive, medical, and other end-use industries are expected to promote revenue growth for these sectors over the forecast period.

In general, the automotive industry has expanded the use of LED lighting in all its automotive series, which are used for the styling and functional impact of rear and front lighting.

LEDs are ubiquitous in indoor lighting applications, creating a new indoor space atmosphere, ergonomic passenger safety, and long-life advantages without replacing light bulbs.

Opportunities for manufacturers of the LED Lighting

Widespread use of LED lighting has the most significant potential impact on energy savings in the United States and other parts of the world.

Growing demand for smart technology globally is projected to result in increased production capacity and the adoption of LED lights to replace conventional lighting solutions. Moreover, the government support for energy saving is likely to adopt a higher ratio of LED lights, thus propelling the market revenue growth in the coming years.

This is another that is expected to create lucrative opportunities for manufacturers to gain a competitive edge in this target market.

Smart lighting solutions are the future of LED lightning

Technological development in electronics and semiconductors and penetration of smartphones have led to increased demand for smart LED lights that can be controlled by remote or cellphone as per requirement.

For example, LEDVANCE GmbH is an international company for lighting products that have developed smart lighting that can be coupled with different technologies such as WiFi, Bluetooth, Zigbee, etc.

COVID–19 Impact

The COVID-19 pandemic has severely impacted several industries, with significant disruption in their day-to-day business operations. The subsequent global lockdown has severely affected economies around the world.

On the other hand, shutting down China's production has forced other consumer electronics makers based in the US and Europe to hold the finished goods temporarily. This leads to a global shortage of LED raw materials used for automotive and other end-use industries, forcing major companies to halt or slow consumer electronics production. This factor is expected to limit the demand and revenue growth for this target market.

Region-wise Analysis

Asia-Pacific is anticipated to be the highest share among regions due to the vast consumer base for smartphones and other smart electronics.

The Asia Pacific LED market is expected to grow at the highest growth rate owing to an increased rate of industrialization in emerging countries, such as China and India, and a rise in the automotive, and consumer electronics sales where LED lights are used for innovative product development coupled with the growing need for automation in industries, improved adoption of digital technologies, and availability of small scale manufacturing factories is expected to fuel the demand for LED lighting market over the forecast period.

Competitive Landscape

The leading manufacturers and suppliers operating in the LED Lightings sector are mentioned below

• LG Innotek
• Samsung Electronics
• Acuity Brands Lighting Inc.
• Cree, Inc.
• General Electric Company
• Sharp Corporation
• Toshiba Corporation
• Koninklijke Philips N.V.
• Digital Lumens, Inc.
• Seoul Semiconductor Co., Ltd.
• Deco Enterprises, Inc.
• Syska Group
• Other Key Industry Players

Some notable developments in the market include:

• The recent development observed in the LED industry is the use of LED lighting for vegetables and fruits produced in the greenhouse. This approach to growing vegetables has increased the revenue for manufacturing industries, and ongoing technological advancements are expected to create many more opportunities for LED manufacturers in the forecast period.
• The U.S. Department of Energy estimates that the widespread adoption of LEDs in residential and commercial applications in the next 20 years will save approximately $265 billion, avoid the need to build 40 new power plants, and reduce electricity demand for lighting by 33%.
• Mini and Micro LED technologies are expected to evolve into new shapes for lighting and displays, resulting in high-resolution devices.

Key Segments Covered

LED Lighting Market, by Product Type

• Lamps
• Luminaires
• Other Product Types

LED Lighting Market, by Application

• Indoor
• Outdoor

LED Lighting Market, by End-Use

• Residential
• Commercial
• Industrial

LED Lighting Market, by Distribution Channel

• Direct Sales
• Online Stores
• Specialty Stores
• Other Distribution Channels