Enjoy complimentary customisation on priority with our Enterprise License!
The lighting market size is estimated to grow at a CAGR of 6.89% between 2023 and 2028. The market size is forecast to increase by USD 54.76 billion. The growth of the market depends on several factors such as strong government support and incentive programs for the development of the lighting market, declining manufacturing costs of light-emitting diodes, and stringent regulations on road safety.
The report includes a comprehensive outlook on the Lighting Market, offering forecasts for the industry segmented by Application, which comprises general lighting, automotive lighting, and backlighting. Additionally, it categorizes Type into LED technology and traditional technology and covers Geography regions, including APAC, Europe, North America, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Lighting Market Forecast 2024-2028
To learn more about this report, Request Free Sample
LED manufacturing costs have decreased over the past decades and will continue to decline over the next five years. This is mainly due to the decline in the ASP of chips and components used in the production of LED devices. Lower LED manufacturing costs result in lower initial installation costs of LEDs and fixtures. This accelerates the installation of new LEDs and luminaires in all application segments.
Moreover, the decrease in LED production costs is due to the government subsidizing the purchase of semiconductor equipment, such as MOCVD, which is used to produce LEDs. This has encouraged LED manufacturers to increase their LED production capacity. Thus, such factors will drive the growth of the market during the forecast period.
The digital revolution is driving the lighting industry forward by introducing a new generation of intelligent lighting controls and systems. Intelligent lighting products can adapt to changing space requirements, such as in office buildings. Smart LED bulbs save energy and redefine the mood of the room by changing colors. A smart bulb is controlled through a device called a hub. Users can control the light through the mobile app. Moreover, LEDs are integrated into the sensor and control.
Moreover, demand for LED lighting products is growing rapidly, especially in outdoor and industrial applications, as the industrial and outdoor segments use light longer than other application segments. LEDs are used in lighting control systems with automatic/mechanical capabilities. They use software to automate lighting operations. Smart lighting systems save energy and provide valuable information that can be used for energy analysis and maintenance. Thus, such factors will drive the growth of the market during the forecast period.
The issue of durability is becoming increasingly crucial in the electronics industry and if this issue is not properly addressed it may impede market growth. Sustainability in the lighting industry refers to the use of energy-saving and eco-friendly solutions such as compact fluorescent lamps (CFLs) and LEDs that help reduce the impact of light on the environment. Furthermore, manufacturers must prioritize sustainability and energy efficiency in lighting products, and consumers must be informed about the benefits of sustainable lighting solutions to make informed purchasing decisions.
In addition, governments must provide incentives and support to encourage the adoption of sustainable lighting solutions. By working together, the lighting industry can grow sustainably while minimizing its impact on the environment. Consequently, with growing concerns about climate change, sustainability has become an important issue and could impede the growth of the market during the forecast period.
The general lighting segment will account for a major share of the market's growth during the forecast period.?The general lighting segment will contribute a major share of the market, as it is most widely used in applications such as homes, offices, factories, streets, stadiums, and theaters. The General Lighting segment deals with general lighting and lighting, electronic equipment, residential lighting, professional lighting, and systems.
Customised Report as per your requirements!
The general lighting segment showed a gradual increase in market share with USD 79.20 billion in 2018. LEDs have driven the lighting industry forward. Customers prefer LEDs because their maintenance cost is very low despite their high initial purchase cost. Furthermore, the continued reduction of LED prices is an added benefit. Developed countries are experiencing the phenomenon of connected lighting, where every light fixture in a household or office can be controlled through smartphones. Thus, the general lighting segment will contribute to the growth of the market during the forecast period.
Based on type, the market has been segmented into led technology and traditional technology. The LED technology?segment will account for the largest share of this segment.? LED is the latest cutting-edge technology in the lighting industry. The LED is a two-wire semiconductor light source. The LED lighting segment will grow significantly due to its efficiency and benefits such as energy savings, longer lifespan, and longer payback period. LEDs have diverged into different sub-technologies that serve similar and specialized interests. OLED is one such technology. An active OLED matrix is placed on a TFT plane, which activates when current is received. These TFT arrays then act as switches for each pixel and contain storage capacitors that allow for a larger display. Thus, innovations in LED technology will drive market growth during the forecast period.
For more insights on the market share of various regions Download Sample PDF now!
APAC is estimated to contribute 45% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In the APAC region, China is the top revenue contributor thanks to its many LED lighting industry and manufacturing units. Over the past decade, the Chinese government has subsidized metal-organic chemical vapor deposition (MOCVD). Many players have entered the LED market in China and purchased MOCVD tools to produce LED arrays. China has more than 450 smart city pilot projects under construction.
Besides, the next major country to contribute to market growth in APAC during the forecast period will be Japan, as commercial LED lighting products have matured in this country, and manufacturers are likely to focus more on the general lighting segment. In addition, the Indian LED market is in its infancy and is growing at a rapid pace. India is witnessing the highest demand for LED lights in the residential and commercial segments. Hence, such factors are expected to drive market growth in this 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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ams OSRAM AG, Bridgelux Inc., Dialight Plc, Digital Lumens Inc., Eaton Corp. Plc, Ennostar Inc., General Electric Co., GrowRay Lighting Technologies, Havells India Ltd., Hubbell Inc., IDEAL INDUSTRIES Inc., Koninklijke Philips N.V., LSI Industries Inc., Lumileds Holding BV, Panasonic Holdings Corp., Sharp Corp., SMART Global Holdings Inc., Syska Led Lights Pvt. Ltd., and Toyoda Gosei Co. Ltd.
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 lighting 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.
|
Lighting Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
175 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 6.89% |
|
Market Growth 2024-2028 |
USD 54.76 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
6.45 |
|
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
|
Performing market contribution |
APAC at 45% |
|
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, Bridgelux Inc., Dialight Plc, Digital Lumens Inc., Eaton Corp. Plc, Ennostar Inc., General Electric Co., GrowRay Lighting Technologies, Havells India Ltd., Hubbell Inc., IDEAL INDUSTRIES Inc., Koninklijke Philips N.V., LSI Industries Inc., Lumileds Holding BV, Panasonic Holdings Corp., Sharp Corp., SMART Global Holdings Inc., Syska Led Lights Pvt. Ltd., and Toyoda Gosei Co. Ltd. |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
