- Rising concern over reduction of non-renewable sources of power, and decreasing price of LED lights are likely to aid in the growth of the industry over the coming years.
- The indoor LED lighting segment held the largest share in 2016 and is anticipated to register a comparatively lower growth rate.
- The industry in Asia Pacific is projected to witness substantial growth.
The global LED lighting market size is expected to reach $108.99 billion by 2025, according to a new report by Grand View Research, Inc., and will register a CAGR of 14.4% during the forecast period. Continuous development of energy-saving capabilities, introduction of Standard Deviation Color Matching (SDCM) control, and longer lifespan compared to CFL lamps have accelerated demand for LED lamps at a global level. Introduction of smart/connected lighting and its multiple uses in residential, commercial, and industrial sectors has also spurred market growth.
Next-generation lighting has become a substitute for incandescent bulbs due to its benefits such as higher efficiency, low cost of operation, and reduced heat losses. Technological advancements, shift from conventional to green lighting, enhanced energy efficiency standards, and declining prices have also spurred demand. Moreover, strict regulatory policies across U.S., European Union, China, and Canada regarding conventional lighting and energy consumption are anticipated to favor market demand over the coming years. Corresponding ratings and design standards categorizing energy efficiency are also finding prevalence across economies such as Japan and China.
The indoor LED lighting segment held the largest share in 2016 and is anticipated to register a comparatively lower growth rate from 2017 to 2025. High adoption of light emitting diodes as an alternative to florescent, HID, and incandescent lightings has paved the way for indoor lighting on a large scale.
Further key findings from the report suggest:
- The global LED lighting market is expected to develop at a CAGR of 14.4% from 2017 to 2025
- OLED emerged as the largest product segment in 2016 and is estimated to generate revenue worth $58 billion by 2025
- Global LED luminaires demand was valued at $10.63 billion in 2016 and is anticipated to witness staggered growth over the course of the forecast period
- The U.S. LED architectural lighting market was valued at $790 million in 2016 and is anticipated to exhibit a CAGR of nearly 15.0% over the forecast period.
- The industry in Asia Pacific is projected to witness substantial growth over the next decade owing to tremendous demand for energy-efficient lighting in residential and commercial sectors. The regional market is expected to exhibit a CAGR of 15.4% from 2017 to 2025
- Key players such as Koninklijke Philips Electronics N.V.; OSRAM GmbH; Cree, Inc.; Eaton; and GE dominated the global LED lighting market, accounting for about 59.0% of the total revenue in 2016.
Grand View Research has segmented the global LED lighting market on the basis of product, design, application, and region.