LED Lighting Market Size, Share, and Trends 2024 to 2034

LED Lighting Market Size and Growth 2024 to 2034

The global LED lighting market size was USD 80.30 billion in 2023, accounted for USD 89.37 billion in 2024, and is expected to reach around USD 260.71 billion by 2034, expanding at a CAGR of 10.1% from 2024 to 2034.

LED Lighting Market Key Takeaways

• Asia Pacific held a market share of 44% in 2023.
• By product, the luminaries segment registered a maximum market share of 58% in 2023.
• By end use, the commercial segment is expected to capture the biggest revenue share of 52% in 2023.

Asia Pacific LED Lighting Market Size and Growth 2024 to 2034

The Asia Pacific LED lighting market size was estimated at USD 35.33 billion in 2023 and is predicted to be worth around USD 114.71 billion by 2034, at a CAGR of 10.3% from 2024 to 2034.

In 2023, the Asia Pacific captured a major market value share of more than 44% in the global LED lighting market and is projected to continue its dominance during the analysis period. This is mainly attributed to the large consumer base in the region. Most of the developing nations in the region have adopted stringent regulations and attractive offers for the public to escalate the adoption of LED lights in the region. LED lights are helpful in saving energy as they supply more watts per hour in less energy consumption. In addition, rise in the construction sector also positively influences the market growth. There are numerous developing countries present in the region that offer alluring opportunities for the development of medical, education, and infrastructure, thereby promoting the construction of hospitals, schools, buildings, and roads in the region.

On the other hand, North America and Europe are the other prime contributors to the global LED lighting market growth. Technology advancement and significant initiatives taken by the governments of these regions for reducing energy consumption are some of the major factors responsible for the growth of the regions.

LED Lighting Market Growth Factors

The plummeting cost of Light Emitting Diode (LED) along with the transformation in energy policies across the globe drives the market growth for LED lighting. The government of various regions offers rebates and attractive incentives for the application of LED lights over conventional lights, expected to proliferate the growth of LED lights in the coming years. LEDs are highly reliable and efficient, and yield longer life span compared to others. They are cost-effective and deliver nearly 50,000 hours of illumination with less amount of energy consumed. Low cost of LEDs and less amount of heat dissipation make them a preferred choice for customers over the incandescent lights.

Besides this, a lack of awareness regarding the payback period and installation cost may hamper the growth of the LED lighting market in the coming years. However, rising investment from governments of various countries for smart cities, smart transportation, smart industries, and the application of numerous smart technologies in different applications drive profound growth for the LED lighting market over the analysis period.

Market Scope

Market Dynamics

Driver

Long Lifespan

LEDs use very little energy because they turn most of their energy into light instead of heat. When considering traditional lighting solutions, this efficiency translates into lower energy usage and longer lifespans. The adoption of LEDs is being encouraged by numerous governments across the globe through laws and policies that are designed to increase energy efficiency. The switch to LED lighting is being aided by programs that provide standards, rebates, and subsidies for energy-efficient lighting. The functionality of LEDs is being improved by their integration with smart technologies and the Internet of Things (IoT). Their popularity is growing in the home, commercial, and industrial sectors thanks to features including automation, motion detection, dimming, color changing, and remote control.

Restraint

Aesthetic Preferences

LED lights are becoming more and more popular because they look good with contemporary, minimalist interior designs. This comprises subtle fixtures, neat lines, and thin profiles. Tunable white lighting is a feature of advanced LED goods that lets customers change the color temperature based on activities or the time of day. RGB LEDs are designed to satisfy customers who want programmable color options for mood lighting or special occasions. Smart LED lights that are programmable through voice assistants, apps, or home automation systems are in great demand. Functions such as scene-setting, scheduling, and dimming improve practicality and customization. Energy-star-certified products are recommended due to their demonstrated energy efficiency and compatibility with both practical and aesthetic standards.

Opportunity

Urbanization and Infrastructure Development

The development of infrastructure and urbanization are two important drivers propelling the market for LED lighting. The need for energy-efficient lighting options, such as LEDs, rises as cities grow and evolve. Residential illumination is becoming more and more necessary as more people migrate into cities. Because of their extended longevity and energy efficiency, LEDs are now the standard for both new and refurbished homes. The need for LED lighting is increased by the growth of commercial buildings, which include places of business, retail establishments, and lodging facilities. These industries place a high priority on energy efficiency in order to cut expenses. Sustainability is becoming more and more important to governments and municipalities. LEDs are essential for achieving energy-saving goals and lowering carbon emissions.

Product Insights

In 2023, LED luminaries occupied a major market value share of around 58% in the global LED lighting market and are expected to exhibit substantial growth over the forecast period. Luminaries are largely used in industrial and commercial applications. It includes lights used in high bays, streetlights, troffers, track lights, downlights, and suspended pendants for various applications. They are costlier than LED lamps and thus contribute a large amount of revenue to the global market. Further, the luminaries are easy to control and provide more light per output power. They also permit designers to use proficient designs that illuminate the same area using less light.

On the other hand, LED lamps exhibit the fastest growth of approximately 14% over the forecast period. LED lamps offer numerous benefits over incandescent lamps such as energy efficiency, robustness, and right temporal stability. In various countries, LED prices are expected to witness a steep decline in the near future, further boosting the demand for LED lamps.

End-use Insights

By end-use, the commercial segment dominated the global LED lighting market and accounted for more than 52% of the market value share. Increasing demand for LED troffers and downlights significantly drives the growth of the segment. Commercial lighting mainly includes museums, galleries, and other exhibition lighting applications that predominantly use projectors, reflectors, and downlights. On the other side, residential segment is expected to witness the fastest growth during the forthcoming years. The growth of the segment is attributed to the rising adoption of LED A-type lamps due to their low price and various subsidy programs initiated by the agencies and governments of different regions. Price contributes as a decisive factor in driving the growth of the residential segment. Furthermore, consumer penetration towards smart home devices that also includes smart lighting accounted as the other prominent factor to propel the residential segment revenue over the predicted period.

 LED Lighting Market Companies

• Cree Inc. (IDEAL INDUSTRIES INC.)
• Acuity Brands Lighting Inc.
• Digital Lumens Inc.
• Dialight
• Hubbell
• GE Current
• LumiGrow
• LSI Industries Inc.
• Siteco GmbH
• Panasonic Corporation
• Semiconductor Co. Ltd. (Seoul Semiconductor)
• Signify Holding
• Zumtobel Group Ag

Recent development

• In July 2023, Marelli and Ams OSRAM have introduced a revolutionary advancement in front illumination for automobiles. The h-Digi microLED module is currently being produced in series. This digital lighting system is inexpensive and compatible with a larger range of cars. It is based on a new type of intelligent multipixel LED that allows for completely adaptive, dynamic headlamp operation and picture projection.
• In January 2024, Halonix Technologies, one of the fastest-growing electrical firms in India, today unveiled its 'Wall De-Light – Spiritual Series' LED lights as a tribute to the country's rich spiritual tradition. The 'Ram Mandir' project is celebrated in this inventive series that is profoundly based in spiritual symbolism and honors its historical and cultural significance.

Segments Covered in the Report

By Product

• Luminaries
  • Troffers
  • Downlights
  • Streetlights
  • Others
• Lamps
  • T-Lamps
  • A-Lamps
  • Others

By Application

• Outdoor
• Indoor

By End-User

• Industrial
• Residential
• Commercial
• Others

Regional Outlook

• • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World