by LED lighting or light-emitting diode lighting is a semiconductor light source that emits light when current flows through it. LED lighting offers various benefits over conventional lighting solutions such as energy efficiency, lower operating costs, design flexibility, durability, and environmental friendliness. LED lighting finds applications in indoor and outdoor lighting for residential, commercial, and industrial purposes. It is extensively used in architectural lighting, accent lighting, decorative lighting, task lighting, retail displays, and outdoor street lighting. Rapid urbanization and growth in construction activities across developed as well as developing nations are expected to boost the demand for LED lighting solutions in the coming years.
The global LED lighting Market is estimated to be valued at US$ 730.4 Bn in 2024 and is expected to exhibit a CAGR of 4.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rapid growth in construction activities is expected to drive the LED lighting market over the forecast period. According to the United Nations, the global urban population is projected to grow by 1.5 times between 2018 and 2050. Additionally, the global construction industry value is estimated to double from the current US$ 8 trillion to US$ 15.5 trillion by 2030. This rapid urbanization and industrialization will spur the demand for infrastructure and real estate development projects worldwide, which will subsequently boost the adoption of indoor and outdoor LED lighting solutions. Furthermore, government support in the form of policy interventions and investment programs to encourage energy-efficient lighting solutions will also contribute to market growth over the next few years. For instance, the Energy Savings and Industrial Competitiveness (ESIC) Act in India aims to promote LED adoption across the country.
Segment Analysis
The LED lighting market is segmented into product type and application. Based on the product type the market can be segmented into lamp and luminaire. The luminaire segment is dominating the market with over 60% share as luminaires provide better lighting effects and are preferred for both indoor and outdoor applications.
PEST Analysis
Political: Governments across the globe are promoting the adoption of LED lights through various policy initiatives and subsidies. This is being done to reduce carbon emissions and energy consumption.
Economic: LED lights have higher upfront costs compared to traditional lights but have much lower operational costs due to their longer lifecycle and lower power consumption. This makes LED lights a highly cost-effective option over the long term.
Social: People are increasingly becoming aware about the environmental benefits of LED lights such as reduced carbon footprint. This is driving the social acceptance of LED lights.
Technological: Manufacturers are continuously investing in R&D to further improve the luminous efficacy and light quality of LED lights. Advanced technologies like automated connectivity are also being introduced.
Key Takeaways
The Global LED Lighting Market Size is expected to witness high growth. The global LED lighting Market is estimated to be valued at US$ 730.4 Bn in 2024 and is expected to exhibit a CAGR of 4.3% over the forecast period 2024 to 2031.
The Asia Pacific region dominates the LED lighting market currently due to high adoption in countries like China and India. Increased government support and low cost of manufacturing are driving LED light sales in the region.
Key players operating in the LED lighting market are HP Inc., Dell Technologies Inc., Lenovo Group Limited, Acer Inc., Apple Inc
