The LED Lighting Market is projected to reach $154.29 billion by 2030, at a CAGR of 10.4% during the forecast period 2024–2030. Some of the major factors driving the growth of this market are the rising need for energy-efficient lighting systems and the enhanced lifespan of LED lighting compared to conventional lighting. In addition, rising government initiatives to reduce energy consumption and greenhouse gas emissions provide opportunities for market growth. However, the high cost of LED lighting systems can restrain the growth of the market.

Rising Need for Energy-efficient Lighting Systems is Expected to Drive LED Lighting Market Growth

The energy consumed for lighting and the resulting emissions are both increasing rapidly. According to Signify Holding (Netherlands), lighting accounts for 13% of all electricity usage worldwide. Energy-efficient lighting can save electricity while maintaining good quality and quantity of light. By moving to energy-efficient LED lighting, lighting-related energy consumption could drop to 8% globally by 2030, even while the total number of light points continues to rise. Given that two-thirds of professional light points around the world are still conventional, the energy-saving potential of switching to LED lighting is enormous.

LED lighting reduces energy consumption significantly over conventional alternatives—well over 50% in most cases. When connected and properly managed, monitored, and controlled, LED lighting systems can push energy reductions to as much as 80%, producing startling results. If businesses and cities converted all of their conventional light points to LED or connected LED, global electricity savings could total as much as 1,132 TWh per year, equivalent to the annual electricity consumption of 494 million households.

LED lighting is already a mass-market technology in developed economies and is gaining a growing share in many emerging and developing countries. Therefore, the rising shift towards energy-efficient lighting to reduce electricity demand, and high energy and maintenance savings is expected to drive the LED lighting market.

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Key Findings in the LED Lighting Market Study:

In 2024, the Lamps Segment is Expected to Dominate the LED lighting Market

Based on offering, the LED lighting market is segmented into lamps and luminaires. In 2024, the lamps segment is expected to account for the larger share of the global LED lighting market. The large share of this segment is mainly attributed to the potential energy- and money-saving benefits associated with LED lamps, rising adoption of LED lamps for street lights, parking garage lighting, walkway and other outdoor area lighting, refrigerated case lighting, modular lighting, and task lighting.

A light-emitting diode (LED) lamp is a solid-state lamp that uses light-emitting diodes as the source of light. LED lamps are used for both general and special-purpose lighting. They have the characteristics of long life expectancy and relatively low energy consumption.

The benefits of LED lamps are as follows:

• The operating cost is very low.
• They are compact in size.
• LED lamps provide easy control of light.
• Remote switching and control can be implemented in the LED lamps.

The Conventional LED Lighting Segment is Expected to Dominate the LED Lighting Market

Based on type, the LED lighting market is segmented into conventional LED lighting and smart LED lighting. In 2024, the conventional LED lighting segment is expected to account for the larger share of the global LED lighting market. The large share of this segment is mainly attributed to the increasing need for energy-efficient lighting systems and favorable government regulations, rising urbanization and development of infrastructure, and increasing awareness about the benefits of LED and the durability of these lights.

However, the smart LED lighting segment is expected to record the highest CAGR during the forecast period. The segment’s growth is driven by factors such as the increased deployment of smart lighting solutions in residential, commercial, and government sectors, rising inclination to customize, schedule, and control lights remotely, and rising home automation.

Furthermore, the growing focus on the technological advancements by the major manufacturers is expected to provide opportunities for segment growth. For instance, in March 2024, Signify Holding (Netherlands) expanded its Philips Smart WiFi range with the launch of a new smart LED downlighter powered by WiZ.

In 2024, the Outdoor Segment is Expected to Dominate the LED lighting Market

Based on application, the LED lighting market is segmented into indoor and outdoor. In 2024, the outdoor segment is expected to account for the larger share of the global LED lighting market. The large share of this segment is mainly attributed to factors such as increasing adoption of energy-efficient lighting solutions, growing government initiatives toward energy efficiency, modernization and development of lighting infrastructures, reduction in the prices of LEDs, and penetration of LEDs as a light source in outdoor lighting applications, such as architectural, highways & roadways, and public places, among others.

In 2024, the New Installation Segment is Expected to Dominate the LED Lighting Market

Based on installation mode, the LED lighting market is segmented into new installation and retrofit installation. In 2024, the new installation segment is expected to account for the larger share of the global LED lighting market. The large share of this segment is mainly attributed to the rising adoption of LED lighting across various end-use industries, the rising adoption of LED bulbs and luminaires to achieve the goal of net-zero emissions, and the increasing need for energy-efficient lighting products.

Based on geography, the LED lighting market is segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2024, Europe is expected to account for the largest share of the LED lighting market. Factors such as increasing awareness about energy conservation, government policies encouraging energy conservation and environment protection, high disposable income, improved standard of living, and increased deployment of smart lighting solutions in residential, commercial, and government sectors are accelerating the growth of the market in Europe. Furthermore, rising government initiatives for the adoption of LED lighting are expected to drive market growth in the region. For instance, in 2024, The Government of Ukraine approved a program for the population to replace incandescent light bulbs with light-emitting diode (LED) light bulbs.

However, the Asia-Pacific registered the highest CAGR in the LED lighting market in recent years. A surge in government initiatives to promote energy-efficient lighting systems, an increasing number of smart city projects, and increasing government investments in public infrastructure are increasing the market's growth in the region.

Key Players:

The key players operating in the LED lighting market are Acuity Brands, Inc. (U.S.), Cree Lighting (U.S.), Dialight (U.K.), Digital Lumens, Incorporated. (U.S), Hubbell (U.S.), LSI Industries Inc. (U.S.), Panasonic Holdings Corporation (Japan), Siteco GmbH (Germany), Signify Holding (Netherlands), Zumtobel Group (Austria), OSRAM GmbH (Germany), LG Electronics (South Korea), Samsung Electronics Co., Ltd. (South Korea), Fagerhult (Sweden), and TRILUX GmbH & Co. KG (Germany).

Report Summary:

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