Lighting Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast 2024-2028

Lighting Market Size 2024-2028

The lighting market size is forecast to increase by USD 54.76 billion at a CAGR of 6.89% between 2023 and 2028. Market growth analysis relies on various factors, including robust government backing and incentive schemes aimed at bolstering the sector. Additionally, the decreasing manufacturing expenses associated with light-emitting diodes (LEDs) contribute significantly to market growth. Furthermore, stringent regulations concerning road safety play a pivotal role in shaping market dynamics. These regulations often mandate the use of specific technologies to enhance visibility and reduce accidents on roads. As governments worldwide prioritize safety and environmental sustainability, the demand for energy-efficient solutions like LEDs is expected to surge. Thus, the convergence of government support, cost-effective manufacturing processes, and regulatory frameworks underscores the pivotal role of these factors in driving the growth of the market.  Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.

Furthermore, 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). Additionally, Acuity Brands Inc. company offers lighting products such as architectural lights, decorative lighting, and linear lighting. Also, ams OSRAM AG company offers lighting products such as agriculture and horticulture LED lighting, indorr lighting, and industrial lighting.

Market Forecasting and Size

Market Forecast 2024-2028

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Market Dynamics

In the realm of interior designing 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.

Key Market Driver- Declining manufacturing cost of light-emitting diodes

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. 

Significant Market Trends- Growing traction of intelligent lighting systems

The digital revolution is driving the 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. 

Major Market Challenge- Sustainability issue in the lighting industry

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 market 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.  

Market Segmentation by Application, Type, And Geography

In the dynamic realm of the market, innovation intersects with various sectors, from interior designing to aviation. Scientists explore the impact of light on plants, while industries seek energy-efficient solutions to minimize electricity consumption and lower energy costs. The Horticulture sector benefits from tailored lighting solutions, enhancing plant growth and yield. From camera flashes to automotive headlamps, white light remains integral, offering clarity and visibility. In advertising and lighted wallpapers, lighting creates ambiance and allure. The Biden Harris Administration advocates for sustainable lighting initiatives, shaping the future of HVAC and smart lighting solutions.

Application Segment Analysis: 

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 other electronic equipment, residential lighting, professional lighting, and systems. 

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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.

Type Segment Analysis:

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. 

Regional Analysis:

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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. 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. 

Who are the Major Market Companies?

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.

• Bridgelux Inc.: The company offers lighting products such as the VERO series, V series, and VESTA series.

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.  

Segment Overview

The market analysis and 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. 

• Application Outlook
  • General lighting
  • Automotive lighting
  • Backlighting

• Type Outlook 
  • LED technology
  • Traditional technology

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview:

The market is undergoing a transformative phase, driven by advancements in artificial intelligence and the Internet of Things (IoT), particularly in urban cities and developing countries. With a focus on energy efficiency and environmental sustainability, there's a growing shift towards solar and off-grid solar solutions, especially in residential sectors and under-developing nations. Key players are investing in innovative light control systems and LED fixture to reduce energy consumption and operating costs in commercial buildings, malls, stores, and public infrastructure like airports and highways. Manufacturers like Signify are leading the way with their EcoLink range, offering smart outdoor lighting solutions aligned with smart cities initiatives to address environmental degradation and energy problems while enhancing life expectancy and luminous intensity.

Additionally, in the dynamic landscape of the market, innovations are reshaping how houses, retail spaces, and public infrastructure are illuminated. With a focus on sustainability, the emphasis is on energy-efficient solutions, especially in the residential sector of developing nations and the off-grid solar sector. Key factors driving this shift include environmental actions to reduce electricity costs and logistics inefficiency. The market is witnessing a decline in traditional lighting technologies like incandescent and fluorescent bulbs, replaced by LED fixtures for their superior efficiency and longevity. Effective manufacturers are leading the charge in providing innovative solutions for commercial malls, restaurants, hospitals, schools, and parking lots, catering to diverse needs while aligning with smart city lighting systems initiatives for enhanced urban infrastructure and safety.

Market Scope
Report Coverage	Details
Page number	173
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, 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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, Europe, North America, Middle East and Africa, and South America
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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