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The LED lighting market size is projected to grow from USD 79.59 billion in 2024 to USD 239.6 billion by 2035, representing a CAGR of 10.53%, during the forecast period 2024-2035.
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The new research study consists of industry trends, detailed market analysis, key market trends of LED lighting market, SWOT analysis and value chain analysis.
The LED lighting market is a sustainable and rapidly evolving division that is transforming the energy saving sector with its market growth. According to Signify, the lighting market holds a 13% share in the electricity consumption globally. As a result, the high demand of LEDs will be prompting a shift in energy consumption, bringing down the consumption levels by 8% globally by 2030. Further, as countries and economies are increasingly recognizing the benefits of LEDs, such as less energy consumption and affordability, the market continues to expand. As a result, the LED market will be taking over the compact fluorescent lamp (CFL) and cold cathode fluorescent lamp (CCFL) lighting market.
The initial high costs of LEDs restricted its acceptance as a cost-efficient alternative. However, its longer lifespan is compensating for the overall pricing. Additionally, when compared with CFLs, the LEDs are proving to have much more value for money. This is further fueling the LED lighting demand. After overcoming this challenge, the market is growing exponentially, driven by factors like financial savings, environment-friendly, and lowered production costs. These factors offer opportunities for greater efficiency, lucrative LED market opportunities, and improved regulatory standards.
The market report presents an in-depth analysis of the various service providers that are involved in offering LED lighting, across different segments, as defined in the table below:
| Key Report Attributes | Details | |
| Historical Trend | 2019-2023 | |
| Base Year | 2023 | |
| Forecast Period | 2024-2035 | |
| Market Size Value in 2024 | $ 79.59 Billion | |
| Market Size Value by 2035 | $ 239.6 Billion | |
| Growth Rate | CAGR of 10.53% from 2024 to 2035 | |
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| Type of Installations |
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| Type of Color Rendering Index |
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| Type of Control Systems |
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| Type of Technology |
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| Type of Distribution Channels |
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| Types Of Energy Efficiency |
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| Type of Form Factor |
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| Area of Application |
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| Type of End User |
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| Company Size |
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| Type of Business Model |
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| Geographical Regions |
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| Leading Market Players |
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| PowerPoint Presentation (Complimentary) |
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| Customization Scope | 15% Free Customization | |
| Excel Data Packs (Complimentary) |
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This segment highlights different types of products developed by key players of the LED lighting market, such as lamps, with subtypes A-type and T-type and others and luminaires, with subtypes decorative, directional and downlighting. According to our market study, currently luminaires account for the highest share and the trend of growth is likely to remain unchanged during the forecast period. This can be attributed to the fact that luminaires are being widely used in products, including track lighting, high bays, troffers and street lighting. Additionally, there is high demand for luminaires LED lights in smart cities, where installations of new commercial tracks and light poles are at rise. However, it is worth highlighting here that the LED lamps category is expected to grow at a higher CAGR during the forecast period. This is likely to be the result of the high requirement of LED lighting systems in the residential sector.
This segment highlights different types of installations done by key players of the LED lighting market, such as retrofit and new. According to our market study, the new installation segment accounts for the highest share in the current year and the trend of growth is likely to remain unchanged during the forecast period. This can be attributed to the new installation’s role in providing a renewed appearance to the structure where it’s being incorporated. Along with this, the increase in market shares can also be accredited to the rising adoption of LED lighting across various end use industries, the increase in LED bulbs and luminaires usage to achieve the goal of net-zero emissions and the need for energy saving products.
This segment highlights different types of sales channels developed by key players of the LED lighting market, such as direct, distributors, e-commerce, retail and wholesalers. According to our market study, the retail segment accounts for the highest share in the current year and the trend of growth is likely to remain unchanged during the forecast period. This can be attributed to the prevalence of retail outlets across various industries along with the benefits related with this option, including superior product quality, on-site verification and immediate availability of the product. This segment boasts a well-established local presence, which results in the cost effectiveness of the products, further fueling market growth.
This segment highlights different types of color rendering index developed by key players of the LED lighting market, such as full spectrum, high CRI and standard CRI. According to our market study, the high CRI segment accounts for the highest share in the current year and the trend of growth is likely to remain unchanged during the forecast period. This can be accredited to its superior ability to render colors accurately in comparison to full spectrum and standard CRI. Having achieved a CRI rating of 90 or above, this option is preferred in sectors where color accuracy is crucial, increasing its usage and market adoption across various industries, such as retail, healthcare, hospitality and art galleries.
This segment highlights different types of control systems developed by key players of the LED lighting market, such as dimmable, manual controls, sensor-enabled and smart controls. According to our market study, the smart control segment accounts for the highest share in the current year and the trend of growth is likely to remain unchanged during the forecast period. This can be attributed to the increasing demand in automation, energy efficiency and cost savings. Consumers are moving towards solutions that can be integrated into smart home ecosystems allowing tangible benefits like remote control and automation of lighting based on user preferences and schedules. The growth in smart control systems reflects the sector’s readiness and reliability, driving its dominance in the lighting industry as more consumers look forward to making their surroundings technologically sound and environmentally efficient.
This segment highlights different types of technology developed by key players of the LED lighting market, such as conventional LED, organic LED, quantum dot LED and smart LED. According to our market study, the smart LED segment accounts for the highest share in the current year and the trend of growth is likely to remain unchanged during the forecast period. This can be accredited to its integration with IoT, energy efficiency, enhanced security features and technological advancements. Designed to integrate seamlessly with the Internet of Things, the smart LED allows the user to control and monitor their lighting devices smartly with voice automation or smartphones. The energy efficient factor also contributes majorly to this segment’s growth aspect as this feature includes dimming capabilities as well as motion sensors, helping in reducing energy consumption.
This segment highlights different types of distribution channels adopted by key players of the LED lighting market, such as offline and online channels. According to our market study, the offline segment accounts for the highest share in the current year and the trend of growth is likely to remain unchanged during the forecast period. This growth can be attributed to the immediate availability of products to the consumers who prefer shopping in real-time. The availability of physical examination and expert assistance in an offline setting are other driving factors for the growth of this segment. However, it is worth highlighting here that the online segment is expected to grow at a higher rate during the forecast period. This is likely to be the result of the increasing preference of online stores and the usage of AI.
This segment highlights different types of energy efficiencies developed by key players of the LED lighting market, such as high, standard and ultra. According to our market study, the ultra-efficient segment accounts for the highest share in the current year and the trend of growth is likely to remain unchanged during the forecast period. This can be attributed to the ultra-efficient segment offering enhanced efficiency, regulatory compliance, growing demand of sustainability, long term cost savings, and enhanced performance. The growth is also highly fueled by the technologically advanced tendencies of this segment.
This segment highlights different types of form factors developed by key players of the LED lighting market, such as bulbs, strips, panels and fixtures. According to our market study, the LED bulbs segment accounts for the highest share in the current year and the trend of growth is likely to remain unchanged during the forecast period. This can be attributed to their ease of use and familiarity as the LED bulbs can be easily swapped with the regular use CFLs without requiring any extra modifications. Additionally, widespread availability is also one of the contributors to this growth. The cost effectiveness and the versatile usage of these products further drives this segment’s dominance in the market.
This segment highlights different types of areas of application for LED lighting market, such as automotive, backlighting, indoor, outdoor and others. According to our market study, the indoor LED market segment accounts for the highest share in the current year and the trend of growth is likely to remain unchanged during the forecast period. This can be attributed to drastic growth of the commercial industry, leading to an exponential demand for LED lighting in supermarkets, shopping centers and retail establishments. The environmental benefits of LED lighting in respect to less heat production and affordability are also contributing to make this segment the leading application mode in this market. However, it is worth highlighting that the outdoor market is expected to expand moderately during the forecast period. This is likely to be the result of the inflation of infrastructure related projects, including highways, airports and other outdoor areas. The growing government initiatives to attain net-zero emissions will also be leading to the growth of outdoor LED market.
This segment highlights different types of end users for the LED lighting market, such as commercial, public / government sector, industrial, residential and transportational. According to our market study, the residential market segment accounts for the highest share in the current year and the trend of growth is likely to remain unchanged during the forecast period. This can be attributed to the increase in urbanization and the rapid growth of residential infrastructure, which has further fueled the demand for LEDs in the residential segment. Additionally, the modernized designs available in LEDs also are a primary factor aiding the growth of the residential end users as more households seek modern lighting solutions. Furthermore, this sector is projected to maintain a high CAGR throughout the forecasting period. However, it is worth highlighting that the commercial and other segments are expected to grow moderately during the forecast period.
The market for LED lighting is segmented by company size, reflecting different market shares and adoption patterns based on organizational scale. It is further segmented into large-size companies and small and mid-size companies. Large companies have the resources and capabilities to invest heavily in research and development, manufacturing infrastructure, and marketing, enabling them to produce LEDs at a lower cost per unit compared to smaller competitors. Furthermore, LEDs in medium and small companies are affordable alternatives available in a good quality. This segment is expected to size up by 2035 owing to increasing demand and availability of better LEDs in the market.
The LED lighting market features three types of business models; these include B2B, B2C and B2B2C. As per our projection, B2B captures the highest market share and is anticipated to lead the segment in the coming years owing to the increasing adoption of LED technology in several business industries, such as aerospace, manufacturing, healthcare, finance, and others. Furthermore, the B2C model will likely grow at a substantial CAGR over this projection period as LED lighting technologies are more user-friendly and consumers are increasingly adopting LEDs for personalized applications, smartphone integration, and better user experience.
The “LED Lighting Market, till 2035: Distribution by Product (Lamps (T-Type, A-Type and others), and Luminaires (Decorative, Directional, and Downlighting)), by Installation (New and Retrofit), by Sales Channel (Direct, retail, and E-commerce), By Control Systems (Dimmable, Smart Controls, Sensor-Enabled, and Manual Controls), By Technology (Conventional LED, Smart LED, Organic LED, and Quantum Dot LED), by Distribution Channel (Offline and Online), by Energy Efficiency (Standard Efficiency, High Efficiency, and Ultra- Efficient), , by Form Factor (Bulbs, Strips, Panels, and Fixtures), by Mode of Application (Indoor and Outdoor) by End- User (Commercial, Residential, and Industrial), by Type of Company Size (Large Enterprises, Small and Medium Enterprises (SMEs)), by Type of Business Model (B2B, B2C, and B2B2C), and Key Geographical Regions (North America, Europe, Asia, Latin America, and Middle East and North Africa and Rest of the World): Industry Trends and Global Forecasts: Industry Trends and Global Forecasts” report features an extensive study of the current market landscape, market size and future opportunity within the LED lighting, during the given LED lighting forecast period. The market report highlights the efforts of several stakeholders involved in this rapidly emerging segment of the service providers industry. Key takeaways of the market report are briefly discussed below.
Recently, the LED lighting market has been experiencing an exponential growth in terms of value share. Key drivers of the LED lighting market include increased demand for energy efficient lighting, cost effectiveness, sustainability, affordability, customization, and innovative use cases across various industries The industrial and warehouse account for most market shares, followed by the commercial, residential and agricultural. In addition, government subsidies and housing schemes are playing key roles in the construction and adoption of new houses across nations. With government issued energy saving programs, the LED lighting industry is bound to grow exponentially in the forecasted period. In this regard, in July 2022, Yum China initiated the construction of a supply chain with an area of 61,000 square meters. The future possibilities and existence of such massive projects are expected to be the main contributors in driving the growth of the lighting market.
Despite growing demand, the LED lighting market is witnessing several challenges that need to be addressed. Some of the potential challenges include the high initial cost of LED and the lack of consumer awareness. It is worth highlighting that the initial purchasing or installation cost of LED lightings are much higher than conventional lightings. The higher cost is likely due to the complicated assembly and high raw material cost. However, the manufacturers are trying to lessen the production costs by employing new designs and technologies. Moreover, a lack of consumer awareness in considering the overall cost of ownership while buying lighting products may affect the adoption rate, which impedes market growth.
The LED lighting market is highly competitive, featuring numerous service providers delivering a diverse array of solutions tailored to various industries and business applications. Key players are focusing on developing LED products for sectors, such as hospitality, retail, healthcare, and residential, offering tailored solutions that enhance functionality, efficiency and cost effectiveness of the consumers.
Prominent providers include OSRAM, which in recent years has been investing in specialty lighting applications, mainly in the horticultural lighting department and UV LEDs. They have recently launched a new range of horticultural LEDs, optimizing plant growth and agricultural productivity. Further, Cree, known for their high-performance products (including cover Xamp LEDs, J Series LEDs and High Brightness LEDs), is leading in high energy savings and better light output. Each provider brings unique capabilities, strengths, and specialized services, targeting the distinct demands of different sectors. The competitive landscape encourages innovation and collaboration, resulting in an evolving ecosystem where organizations can leverage LED lightings to drive change in the lighting industry with more cost and energy efficiency.
Asia Pacific holds the largest LED market share due to an increase in utilization of LED lamps and luminaires in smart residences and urban centers, which is further proving to be a catalyst for market advancement in the region. Additionally, a few of the top players are introducing various business strategies, for instance, partnerships, acquisitions and business expansion to boost market growth in the country. Along with this, China is one of the key contributors in driving this market with its increasing number of large-scale projects aiming at improving energy efficiency and reducing carbon emissions.
Examples of key service providers involved in the LED lighting market industry (which have also been captured in this market report, arranged in alphabetical order) include Acuity Brands, Bridgelux, Cree Lighting, Daktronics, Eaton, Fagerhults Belysning AB, GE Lighting, Halonix, LG, Hubbell, Innotek, Nanoleaf, OSRAM Licht, Pretium Packaging, Renolit SE, Seoul Semiconductor, Signify Holding B.V., Syska, TRILUX GmbH, Wipro Lighting, Wolfspeed, Yeelight, Zumbotel SAP, and others. This market report includes an easily searchable excel database of the companies who are engaged in offering LED lighting services, along with information on several relevant parameters.
The market report presents an in-depth analysis, highlighting the capabilities of various companies engaged in this domain, across different segments. Amongst other elements, the market report includes:
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