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The industrial lighting market size is estimated to increase by USD 3.25 billion between 2023 and 2028. The market size is forecast to grow at a CAGR of 6.43%.
The market's expansion hinges on various factors including the uptick in the adoption of energy-efficient lighting technologies, heightened modernization and infrastructural development, and escalating government initiatives to embrace energy-efficient lighting within the industrial sector. These trends collectively drive demand and innovation within the market, fostering growth opportunities and promoting sustainability initiatives. As stakeholders prioritize efficiency and environmental consciousness, the market continues to evolve, offering diverse solutions to meet the growing demands of industries and communities worldwide.
Market Forecast 2024-2028
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The Industrial Lighting Market is witnessing a significant transformation driven by advancements in technology and growing emphasis on energy efficiency. LED light sources are becoming the preferred choice for industrial settings due to their low energy consumption and long lifespan compared to traditional options like linear fluorescent lamps and metal halide lamps. Public organizations and initiatives like the Global Lighting Association and EIA are advocating for energy-efficient lighting solutions and promoting the penetration of LEDs. Companies like Signify and Dialight Group are leading the market with innovative offerings such as LED modules and the ProSite LED floodlight. The market is also influenced by factors like infrastructural development and logistics, as well as regulations like Ecodesign. As demand for efficient lighting grows, the industry is expected to continue its upward trajectory, bolstered by advancements in lighting controls and technology.
LED light source are emerging as the preferred choice over traditional options like linear fluorescent lamps and metal halide lamps, offering superior lifespan and low energy consumption. Innovations in lighting are reshaping warehousing and logistics, with connected lighting solutions and flood lighting/area lighting gaining prominence. Organizations such as Global Lighting Association and Lighting Controls Association advocate for energy-efficient lighting solutions while government bodies like EIA and DOE drive Energy Conservation through regulatory standards. With the rise of urbanization and infrastructure development, demand for energy-efficient lighting systems is escalating, prompting significant initial capital investments. The market's trajectory is further influenced by factors like natural gas, government policies, and e-commerce market dynamics.
The global market is experiencing significant growth in the adoption of energy-efficient technologies, driven by the effective benefits they offer to industrial facilities. This trend is primarily exemplified by the transition from traditional systems to LED solutions. One of the leading driving forces behind the surge in LED adoption is the substantial energy cost savings it allows.
Furthermore, industrial facilities, which generally operate extensive systems, are mainly recognizing the potential for significant reductions in energy consumption and operating expenses by transitioning to LED. In addition, LED aligns with sustainability initiatives and environmental responsibility. Thus, such factors are expected to propel the growth of the market during the forecast period.
Strategic alliances and developments can help market players explore more opportunities without incurring a considerable financial burden. Such partnerships for product development and product commercialization provide market players with multiple benefits, such as cost containment, extended product lines, and increased geographical reach.
For instance, in April 2021, Glamox AS (Glamox) announced the acquisition of Luminell Group AS, a Norwegian company that develops and provides floodlights, searchlights, and controls in the marine and offshore market. Therefore, such factors are expected to drive the growth of the global market during the forecast period.
Sustainability in the industry directs to using environmentally friendly and energy-efficient solutions such as CFLs and LED lighting that minimize the impact on the environment. Many technologies, including LEDs, require rare earth elements such as phosphor-based LEDs that are limited in supply. The boosted demand for these rare earth materials due to the growth of the industry can lead to price spikes and supply chain disruptions.
Moreover, manufacturers need to prioritize sustainability and energy efficiency in the products, and consumers need to be educated on the benefits of sustainable solutions to make informed purchasing decisions. Additionally, governments need to provide incentives and support to encourage the adoption of sustainable solutions. Thus, such factors may impede the growth of the market during the forecast period.
The Industrial Lighting Market is experiencing a revolution driven by LED light source. Traditional options like incandescent bulbs, and fluorescent and halogen light bulbs are being rapidly replaced due to the superior durability and energy efficiency of LEDs. As organizations strive for energy conservation, EIA and DOE play crucial roles in setting standardization and promoting Solid-state Lighting (SSL) technologies. Innovations such as connected lighting solutions and spotlighting are reshaping the landscape, enhancing installation flexibility and energy savings. Moreover, organizations like EU and ONS contribute to shaping regulatory frameworks and influencing market dynamics.
The market share growth by the led technology segment will be significant during the forecast period. The adoption of LED technology worldwide is increasing at a rapid rate. The global market is seeing high growth in the use of LED components and LED-based luminaires by end-users. The major reasons for this tremendous growth are the energy-saving characteristics of LEDs, their decreasing cost, and compatibility with the existing fixtures.
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The LED technology segment was valued at USD 4.61 billion in 2018. The penetration of LEDs in Japan grew significantly after the Fukushima nuclear disaster, leading to a severe energy crisis in the country. In addition, the European Commission has decided to ban low-voltage halogen lamps, which will further drive LED penetration during the forecast period.
Based on application, the market has been segmented into new installation, replacement installation, and retrofit installation. The new installation segment will account for the largest share of this segment.?The adoption is increasing due to its durability, energy savings, and better efficiency than ordinary lights. The installation of industrial lights is rising in several end-user facilities, such as streets and roads, commercial buildings, factories, and others. Industrial lights generally do not involve unnecessary downtime since the LED is more shatter-resistant than conventional systems. They are less likely to experience mishaps caused by faulty fixtures because they endure longer as well. Thus, such factors are expected to fuel the growth of the new installation segment in the global market during the forecast period.
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APAC is estimated to contribute 47% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges expected to shape the market during the forecast period. In APAC, China is the major revenue-contributing country owing to the presence of many LED manufacturing units and industries. China has more than 450 smart city pilot projects that are under construction. The upcoming smart cities will drive the growth of the market significantly.
In addition, the next major country to contribute to market growth in APAC will be Japan, as commercial LED products have gained maturity in this country, and manufacturers are likely to focus more on the segment. India's LED segment is in its nascent stage and is growing at a rapid pace. India is experiencing the highest demand for LEDs in the industrial segments. Thus, such factors will drive market growth in the APAC region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acuity Brands Inc.: The company offers industrial lighting solutions such as Linear High Bay, Low Bay and Modular Wiring.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ams OSRAM AG, Bajaj Electricals Ltd., Dialight Plc, Eaton Corp. Plc, Emerson Electric Co., Fagerhult Group, General Electric Co., Glamox Group, Hubbell Inc., Iwasaki Electric Co. Ltd., Legrand SA, Mulinsen Co. Ltd., Panasonic Holdings Corp., RAB lighting Inc., Signify NV, TRILUX GmbH and Co. KG, Wipro Ltd., Wolfspeed Inc., and Zumtobel Group AG
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Based on their quantitative data analysis, companies are specially categorized into dominant, leading, strong, tentative, and weak.
The Industrial Lighting Market is a dynamic sector, particularly crucial for heavy industrial applications in the mining industry across EMEA and APAC regions. The ProSite LED floodlight range is a standout solution, offering ignition resistance and durability of LED lights. Warehouses, still using older lamps, face disposal hazards but can enhance safety and productivity with LED modules. Governments and public organizations, driven by the EU's policy measures, are pushing for ecodesign rules, like the use of Philips LED A-class bulbs, to reduce energy consumption and achieve net-zero carbon emissions. Manufacturing companies are keen on wholesale gas and electricity prices. Market players like Signify and Dialight Group are focusing on innovation strategies, emphasizing energy efficiency, luminosity, and resistance to shock and corrosion. As the market grows, so do concerns about maintenance costs and regulations, especially post-Covid-19, highlighting the need for efficient, durable, and cost-effective lighting solutions like the Pacific LED gen5 waterproof luminaire.
Transformative shift with the widespread adoption of LED light sources. This revolution is fueled by constant lighting innovations and advancements in solid-state lighting (SSL) technology, championed by organizations like EIA and DOE. Traditional options such as fluorescent light bulbs are being replaced by more efficient LEDs due to their superior durability of LED lights and energy-saving capabilities. Regulatory bodies like the EU are also playing a crucial role in shaping the industry landscape, while technologies like CFL, LFL, and HIDs are gradually being phased out in favor of more sustainable options.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.43% |
Market growth 2024-2028 |
USD 3.25 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.81 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acuity Brands Inc., ams OSRAM AG, Bajaj Electricals Ltd., Dialight Plc, Eaton Corp. Plc, Emerson Electric Co., Fagerhult Group, General Electric Co., Glamox Group, Hubbell Inc., Iwasaki Electric Co. Ltd., Legrand SA, Mulinsen Co. Ltd., Panasonic Holdings Corp., RAB lighting Inc., Signify NV, TRILUX GmbH and Co. KG, Wipro Ltd., Wolfspeed Inc., and Zumtobel Group AG |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market growth and trends report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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