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The lighting market size is projected to increase by USD 54.76 billion at a CAGR of 6.89% between 2023 and 2028. Market growth is driven by robust government backing, incentive schemes, and decreasing manufacturing expenses of LEDs. Stringent road safety regulations also play a significant role, mandating the use of technologies that enhance visibility and reduce accidents. The demand for energy-efficient solutions like LEDs is expected to surge as governments prioritize safety and environmental sustainability.
Lighting Market Forecast 2024-2028
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The general lighting segment will account for a major share of the market's growth during the forecast period.?the market encompasses various applications, including aviation, advertising, medical devices, camera flashes, traffic signals, and more. Effective manufacturers, such as Signify, OSRAM, and IDEAL INDUSTRIES Inc.'s Cree, cater to urban cities and commercial establishments, including airports, outdoor LED lighting for highways and parking lots, and commercial buildings like malls, stores, restaurants, hospitals, and schools.
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The general lighting segment showed a gradual increase in market share with USD 79.20 billion in 2018. LED technology, with its long life expectancy, high luminous intensity, and energy efficiency, has revolutionized the industry, reducing energy consumption and operating costs. LED fixtures are now commonplace in semiconductor manufacturing, real estate development, and even in smart outdoor lighting systems for bridges and buildings. LED lighting has replaced traditional incandescent lamps and fluorescent bulbs due to their cost-effectiveness, energy savings, and environmental benefits. Market leaders like Signify offer innovative solutions, such as the EcoLink range, for office buildings and smart LED bulbs for energy-conscious consumers. Thus, the general lighting segment will contribute to the growth of the market during the forecast period. Our report examines historical data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
Based on type, the market has been segmented into led technology and traditional technology. The market is experiencing a revolution with the adoption of LED technology. LEDs emit light through infrared radiations and offer unprecedented energy efficiency, consuming less power while maintaining the same level of brightness. This alignment with sustainability and environmental responsibility is a key factor in the market's growth. The Biden Harris Administration's focus on green initiatives further bolsters this trend. LEDs boast a Color Rendering Index that far surpasses traditional bulbs, making them ideal for smart cities initiatives and the horticulture sector. CEA systems and building automation integrate LEDs with HVAC and security, enhancing energy savings. Smart lighting solutions, a subset of LED technology, offer customizable color temperatures and energy management capabilities. Thus, innovations in LED technology will drive market growth during the forecast period.
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APAC is estimated to contribute 45% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market in APAC, particularly in China, is experiencing significant growth due to the presence of numerous LED manufacturing units and subsidies from the Chinese government for Metal-Organic Chemical Vapor Deposition (MOCVD) technology. This has attracted numerous companies, leading to an increase in production of LED dies. The upcoming smart cities in urban areas, with over 450 pilot projects under construction, will further fuel market growth.
Effective manufacturers are expanding their operations in China to cater to various sectors such as aviation, advertising, medical devices, traffic signals, and commercial establishments including malls, stores, restaurants, hospitals, schools, and office buildings. Outdoor LED lighting is increasingly being used for highways, parking lots, bridges, and even for energy-efficient semiconductor manufacturing. Significant investments are being made in cost-effective, long-lasting, and energy-efficient LED fixtures to replace traditional incandescent lamps and fluorescent bulbs. Signify, a leading lighting company, has launched its biggest LED manufacturing site in China, with an area of 200,000 square meters and 192 production lines, to cater to the increasing demand for LED lighting solutions. The company's EcoLink range of energy-efficient LED lighting is also gaining popularity in the market. Hence, such factors are expected to drive market growth in this region during the forecast period.
In the realm of interior design and photography, lighting plays a pivotal role in creating ambiance and highlighting features. From scientists studying the effects of light on plants to industries relying on electricity and metals for energy-efficient solutions, the significance of lighting is undeniable. Innovations like smart lighting solutions and CFL bulbs are reshaping electricity consumption patterns and lowering energy costs. In sectors like automotive headlamps, aviation, and medical devices, precise lighting is crucial for safety and functionality. The advancement of LED technology and color rendering index has expanded possibilities in advertising, traffic signals, and lighted wallpapers, offering both aesthetic appeal and efficiency. Moreover, initiatives like CEA systems and building automation systems are revolutionizing horticulture and security, ensuring efficient lighting across various domains. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The market is experiencing significant advancements, with companies prioritizing innovation to cater to evolving consumer requirements. Infrared radiations are increasingly being utilized in various industries, including automotive and consumer electronics, for enhanced functionality and design. Smart cities initiatives are driving the adoption of energy-efficient and environmentally sustainable lighting solutions, such as LED technology. The Biden Harris Administration's focus on green infrastructure and building automation systems further emphasizes the importance of energy-efficient lighting in HVAC and security applications. The CEA systems and horticulture sector are also benefiting from advanced lighting technologies, with a strong emphasis on color rendering index and smart lighting solutions for improved productivity and sustainability. companies, such as Dialight, are offering extended warranties, like the recent 7-year warranty for Aviation Obstruction Lighting Solutions, to ensure product quality and customer satisfaction. Thus, such factors will drive the growth of the market during the forecast period.
The market is experiencing significant growth due to the adoption of advanced systems, such as CEA (Computer-Controlled Lighting Systems) and adaptive lighting, in various sectors. Infrared radiations play a crucial role in these systems, enabling energy efficiency and environmental sustainability. Smart cities initiatives are driving the demand for energy-efficient and environmentally sustainable lighting solutions. The Biden Harris Administration's focus on infrastructure development and sustainability is expected to further boost the market. Adaptive lighting systems, including smart headlamps, are increasingly used in commercial and passenger vehicles for enhanced safety and comfort.
Consequently, such systems use steering input to adjust the beam direction, improving visibility around curves and hills. In the horticulture sector, CEA systems are used to optimize plant growth through precise control of light spectrum and intensity. Building automation systems and HVAC integrate smart lighting solutions for energy savings and improved security. The Color Rendering Index (CRI) is a critical factor in evaluating the quality of light emitted by these systems. Overall, the market is expected to grow significantly due to its energy efficiency, environmental sustainability, and advanced features. Thus, such factors will drive the growth of the market during the forecast period.
The market's focus on sustainability is crucial as inefficient lighting practices can negatively impact the environment through energy consumption and infrared radiation. Smart cities initiatives prioritize energy efficiency and environmental sustainability, driving the demand for advanced lighting technologies such as LEDs and CEA systems. The Biden Harris Administration's commitment to reducing carbon emissions further emphasizes the importance of energy-efficient lighting.
Further, the horticulture sector also benefits from smart lighting solutions, ensuring optimal growth conditions while minimizing resource usage. Building automation systems, including HVAC and security, integrate smart lighting to enhance functionality and energy savings. Despite the benefits, the limited supply of rare earth elements required for Phosphor-based LEDs may cause price spikes and supply chain disruptions. The Color Rendering Index remains a critical consideration for ensuring the accurate representation of colors in various applications. 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.
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:
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 market report forecast the 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. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The lighting market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the lighting industry, LED technology has become a significant trend. Leds, Consumptive Technology, and Photography play crucial roles in this sector. The use of LED lights is not only energy-efficient but also offers excellent brightness and longevity. Plans and electrics are essential elements in lighting design. Electricity is a fundamental requirement for lighting systems. Homes and offices require various types of lighting, such as ceiling lights, wall lights, and floor lamps. The selection of lighting depends on the specific needs and preferences of the users. LED lights are becoming increasingly popular due to their energy efficiency and long lifespan. Consumptive technology and automation are also essential in the lighting industry. For instance, motion sensors and timers can help save energy by turning off lights when not in use.
Moreover, the use of artificial intelligence and machine learning algorithms in lighting systems is a growing trend. These technologies can help optimize lighting based on user behavior and environmental conditions. In conclusion, the lighting industry is undergoing significant changes, with LED technology leading the way. Plans, electricity, and design are essential elements in this sector. Energy efficiency, automation, and AI are some of the key trends shaping the future of lighting. Comprehensive market analysis and report are essential for understanding market growth and trends. The market encompasses various applications, including interior designing, photography, and scientific research. LED lights, a significant segment of this market, are increasingly popular due to their energy efficiency and low electricity consumption.
Additionally, LEDs are used in automotive headlamps, aviation, advertising, and lighted wallpapers, among other applications. The Biden Harris Administration's focus on energy efficiency and reducing energy costs has further boosted the demand for LED lighting. Scientists continue to innovate in this field, developing new CEA systems and LED lighting for the Horticulture sector. Building automation systems, including HVAC, security, and smart lighting solutions, are also driving the market growth. White light LEDs are essential in medical devices, camera flashes, traffic signals, and more. The Color Rendering Index (CRI) is a crucial factor in evaluating the quality of light emitted by LEDs. Overall, the market is a dynamic and innovative sector that continues to evolve, driven by advancements in technology and changing consumer preferences.
Market Scope |
|
Report Coverage |
Details |
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, Lighting Market Industry Report |
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 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 market forecast period. |
Customization purview |
If our lighting market worth 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 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
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