LED Light Tower Market Analysis

LED Light Tower Market Analysis

The rental channel segment held a majority LED light tower market value of over USD 1.8 billion in 2022, owing to the gradual shift toward the adoption of economical services including renting to reduce the overall maintenance & operation expenses along with other costs incurred in the transportation of equipment. Swift technological innovations and stringent environment safety laws are compelling the major industry end beneficiaries to venture into rental options. Cost-effectiveness, improved system efficiency, increased durability, and easy availability are stimulating the rental business landscape.
 

The major companies including Generac Power Systems, Wacker Neuson, Allmand, Atlas Copco, and Doosan are developing their rental channels to gain a significant market foothold in the untapped rental industry. However, rapid industrialization, growing urbanization, and the increased investments prevalent across all regions are propelling the sale of LTs. In the recent years, more labour laws were introduced, which promoted policies to avoid casualties and accidents on jobsites, enhancing the product demand. Government funds & incentives, R&D, investments, technological advancements, innovations, and the demand for product upgrades are positively influencing the deployment of LTs.
 

The LED light tower market from the diesel power source accounted for 35% revenue share in 2022. These systems require low maintenance, are easily accessible, available with highly efficient diesel gensets and have high storage capacity, which has complemented its demand growth over the years. However, changing emission laws and targets across the globe has alarmed the diesel genset users to gradually shift toward cleaner and sustainable technologies including solar and fuel cells, which is bound to give a boost to the market penetration of these technologies.
 

LED light tower market from the construction sector is projected to grow at a CAGR of over 7% till 2032. Swift commercialization along with rapid growth in construction sector specifically in India and China will lead to an expansion in the potential for product deployment. Growing demand for reconstruction of residential, industrial and commercial establishments across U.S. owing to aftereffects of natural disasters including hurricanes will further drive the market value.
 

For instance, as per Associated General Contractors of America (AGC), construction sector accounted for 4.2% of the total U.S. GDP in 2021. Growing demand for tourism across the Middle East region will propel the construction statistics across the hotels and restaurant industry, which in turn will complement the LED light tower market growth. Moreover, the increased influx of funds in infrastructure development worldwide owing to the ongoing transport development and restoration of the existing structures will positively impact business growth. As per the U.S. Commerce Department, investments in the U.S. construction projects rose by 1.7% in January 2021 with funding in residential & non-residential construction rising by 2.5% and 0.4%, respectively.
 

Asia Pacific region is expected to note an increase in LED light tower deployment over the forecast timeline. The high industrial production of consumer appliances, automotive, and industrial machinery, most notably across India, China, and South Korea is driving LED light tower market size. India is witnessing positive development in economic conditions along with growing ventures in transport infrastructure, energy & housing projects. China is witnessing increased investments in the development & refurbishment of railways along with other advancements pertaining to construction & infrastructure. The government of China is investing USD 44 billion in Shanghai urban rail transit expansion, which is one of the most expensive projects in the recent times. The expansion includes nine rail projects categorized by six subway lines & three intercity lines to be constructed by 2023. The government has also set new targets aiming for 38,000 km by 2025 and 45,000 km by 2030.
 

The ongoing infrastructural development along with set goals will significantly increase the demand for LED LTs across China. For instance, in 2019, the National Development & Reform Commission (NDRC) approved 21 mega infrastructure projects in China worth USD 107.8 billion. The growing mining & construction industry across the region will also increase product adoption in the coming years.