LED Lighting Market - Product Type (Lamps, Luminaires), By Application (Indoor, Outdoor), By Installation (New, Retrofit) By Sales Channel, By Wattage, By Technology & Forecast, 2024 - 2032

LED Lighting Market Size

LED lighting Market was valued at USD 85.97 billion in 2023 and is anticipated to grow at a CAGR of over 10% between 2024 and 2032. The market is experiencing robust growth driven by increasing global awareness of energy efficiency and environmental sustainability.
 

Governments worldwide are implementing stringent regulations to phase out traditional incandescent and fluorescent lighting, favoring energy-efficient alternatives like LEDs. For instance, in August 2024, the Street Lighting National Programme (SLNP) reported an estimated energy savings of 8,806 million units annually due to the installation of over 13.1 million LED streetlights by Energy Efficiency Services Limited (EESL) across India.
 

Technological advancements in LED lighting have also played a crucial role in market growth. Innovations in LED technology have led to improvements in energy efficiency, lifespan, and light quality, making LEDs more appealing to a broader range of applications, from residential and commercial to industrial and outdoor lighting. Additionally, the decreasing cost of LED components due to economies of scale and advancements in manufacturing processes has made LED lighting more affordable, further accelerating market penetration.
 

The growing trend towards smart cities and the integration of IoT (Internet of Things) in lighting systems is another significant growth driver. Smart LED lighting solutions, which offer features like remote control, automation, and energy management, are increasingly being adopted in urban infrastructure projects. These intelligent lighting systems not only enhance energy savings and operational efficiency but also contribute to improved safety and comfort in urban environments. This rising adoption of smart lighting solutions is expected to continue driving the LED lighting market's growth in the coming years.
 

Despite the long-term benefits of energy savings and lower maintenance costs, the initial purchase price of LED lighting systems can be significantly higher than traditional lighting options. This high upfront cost can deter both residential and commercial consumers, particularly in regions with limited financial resources or where immediate cost savings are a primary concern. Budget constraints can be especially challenging for small businesses and public sector projects, which may struggle to justify the initial expenditure despite the potential for long-term savings.
 

The LED lighting industry is characterized by rapid technological advancements, with frequent innovations leading to improved efficiency, lifespan, and functionality. While these advancements are beneficial, they also pose a challenge as products can quickly become outdated. Manufacturers must continuously invest in research and development to stay competitive, which can be costly.
 

LED Lighting Market Trends

A significant trend in the LED lighting industry is the integration of themed and customizable lighting solutions. This shift is driven by consumers' growing desire for personalization and unique aesthetic experiences in their living and working spaces. As technology advances, manufacturers are offering lights with customizable colors, patterns, and designs, allowing users to tailor their lighting environments to their preferences and moods. Themed lighting, often inspired by popular culture, gaming, or specific design motifs, adds an extra layer of appeal, attracting enthusiasts and collectors. This trend reflects a broader movement towards creating more engaging, dynamic, and personalized spaces through innovative lighting solutions.
 

For instance, in August 2024, Govee launched Evangelion-themed RGB LED lights, featuring a unique design inspired by the anime. These premium lights, available on Amazon and Govee's website, support RGBIC LEDs, Matter, Alexa, and Google. Despite their higher cost, they're currently on sale, offering various futuristic designs and advanced features.
 

LED Lighting Market Analysis

Based on product type, the market is divided into lamps, and luminaires. The luminaires segment is expected to reach a value over USD 100 billion by 2032.
 

• The demand for integrated lighting solutions in both residential and commercial spaces is increasing, as luminaires offer enhanced design flexibility and aesthetic appeal compared to standalone lamps. Advancements in LED technology have enabled the development of more energy-efficient and longer-lasting luminaires, which are becoming the preferred choice for new installations and retrofits.
   
• The growing trend towards smart lighting systems, which often incorporate luminaires with IoT and connectivity features, is further driving the market. Finally, government regulations and incentives promoting energy-efficient lighting solutions are encouraging the adoption of advanced luminaires, contributing to the segment's substantial growth forecast.
   

Based on application, the market is divided into indoor, and outdoor. The outdoor segment is the fastest growing segment with a CAGR of over 10% between 2024 and 2032.
 

• The increasing adoption of smart city initiatives globally is leading to a surge in demand for advanced outdoor lighting solutions, such as streetlights and public space lighting, which offer energy efficiency and enhanced public safety. The push for sustainability and reduction in carbon emissions is encouraging the replacement of conventional outdoor lighting with LED solutions, known for their lower energy consumption and longer lifespan.
   
• Technological advancements, including the integration of IoT and smart controls in outdoor lighting, are also contributing to this rapid growth, as these systems provide improved energy management and operational efficiencies. Additionally, the growing emphasis on infrastructure development and urbanization in emerging economies is fueling the demand for modern, efficient outdoor lighting systems, further bolstering the segment's expansion.
   

North America dominated the global LED lighting market in 2023, accounting for a share of over 30%. Strong regulatory support and government incentives for energy-efficient lighting are major drivers, with policies aimed at reducing energy consumption and promoting sustainability. Additionally, the region's advanced infrastructure and high rate of technology adoption support the widespread implementation of LED lighting solutions. The increasing demand for smart lighting systems, driven by smart city initiatives and the integration of IoT technologies, further propels market growth.
 

The US market is expanding rapidly due to a combination of regulatory incentives and technological advancements. Federal and state-level policies promoting energy efficiency, such as tax credits and rebates for LED installations, are encouraging both residential and commercial sectors to switch to LED lighting. The growing trend of smart home and smart city projects is also driving demand, as consumers and municipalities seek to integrate advanced lighting solutions with connectivity and automation features.
 

China LED lighting market is expanding rapidly, fueled by the country’s aggressive push towards urbanization and infrastructure development. The Chinese government’s commitment to green and energy-efficient technologies is a key driver, with numerous initiatives and subsidies aimed at promoting LED adoption. The country’s focus on reducing air pollution and energy consumption aligns with the benefits of LED lighting, which offers lower power usage and reduced emissions.
 

South Korea market is growing due to its strong emphasis on technological innovation and smart city development. The government’s support for advanced technologies and energy-efficient solutions is a significant factor, with various policies and funding programs designed to encourage LED adoption. South Korea’s leadership in electronics and smart technology integration is driving demand for high-performance LED lighting solutions, including those that incorporate IoT and smart controls.
 

Japan market is witnessing steady growth, driven by a combination of technological advancements and a strong focus on energy conservation. The country’s rigorous energy efficiency standards and regulations are major factors, with policies that mandate the adoption of energy-saving lighting technologies. Japan’s commitment to sustainability and reducing carbon emissions aligns with the benefits of LED lighting, which provides lower energy consumption and longer lifespans.
 

LED Lighting Market Share

Philips Lighting (Signify) and Osram Licht AG hold a significant share in the LED lighting industry. Philips Lighting (Signify) is a global leader in the LED lighting industry, known for its wide range of high-quality lighting solutions. The company’s emphasis on innovation, including smart and connected lighting systems, has solidified its position as a major market player. Signify’s commitment to sustainability and energy efficiency aligns with current market trends, enhancing its competitive edge. Osram Licht AG is another key player with a substantial market share, offering diverse LED lighting solutions across various applications. Osram’s focus on advanced technologies and high-performance products, combined with its extensive distribution network, contributes to its leading position.
 

Some other major players in the market are Sharp Corporation, LG Innotek, Panasonic Corporation, Toyoda Gosei Co., Ltd., Hubbell Lighting, Dialight PLC, Seoul Semiconductor, Everlight Electronics, Lite-On Technology, and LEDVANCE.
 

LED Lighting Market Share

Major players operating in the LED lighting industry are:

• Acuity Brands, Inc.
• Cree, Inc.
• GE Lighting
• Osram Licht AG
• Philips Lighting (Signify)
• Samsung Electronics Co., Ltd.       
• Zumtobel Group
   

LED Lighting Industry News

• In August 2024, Hobolite unveiled the Avant Max and Mini Max Bi-Color LED lighting kits, designed for content creators. The Avant Max features 80W power and 9005 lux brightness, while the Mini Max offers 40W and 7325 lux. Both kits emphasize portability, vintage design, and advanced features like Bluetooth control and color gel mounting.
   
• In June 2024, M3 Innovation's Mako Sports Lighting system made its debut at Kensington Oval during the ICC T20 World Cup. Designed specifically for cricket, the LED system enhances broadcast quality with high-intensity, precise lighting. The upgrade, also installed at Lord's and Arnos Vale, improves game visibility and reduces light pollution.
   

LED lighting market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) from 2021 to 2032, for the following segments:

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Market, By Product Type

• Lamps
  • A-Type
  • T-Type
  • Other Lamp Types (Type-B and Type-C LE Lamps) 
• Luminaires
  • Downlighting
  • Decorative Lighting
  • Directional Lighting
  • Other Luminaire Types (Surface Mounted, In-ground and Pendant Luminaires)

Market, By Application

• Indoor
  • Residential
  • Commercial
    • Offices
    • Retail Stores
    • Horticulture Gardens
    • Others (Hotels & Restaurants)
  • Industrial
  • Other Indoor Applications (Government Buildings & Public Spaces) 
• Outdoor
  • Streets and Roadways
  • Architectural Buildings
  • Sports Complexes
  • Tunnels
  • Other Outdoor Applications (Urban Landscapes, Parks, Plazas, Event Lighting)

Market, By Installation

• New
• Retrofit

Market, By Sales Channel

• Retail/Wholesale
• Direct Sales
• E-commerce

Market, By Wattage

• Low Wattage (Below 10W)
• Medium Wattage (10W to 50W)
• High Wattage (Above 50W)

Market, By Technology

• Chip on Board (COB)
• Surface Mounted Diode (SMD)
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA