Energy Efficient Lighting Market

Energy Efficient Lighting Market Size

The global energy efficient lighting market was valued at USD 44.5 billion in 2024 and USD 72.8 billion by 2034, growing at a CAGR of 5.2% during the forecast period of 2025–2034.

• The global energy efficient lighting market is experiencing rapidly growth as government approach towards developing smart cities coupled with high adoption of LED lamps from residential sector. According to International Energy Agency (IEA) report in 2022, LED lamps accounted for roughly half of all residential lighting sold worldwide, and stakeholders are working to raise that share close to 100% by 2025. Also, governments and companies emphasize lower operating costs, and reduce carbon footprints, is anticipated increase the adoption of energy efficient lighting which is expected to support the growth of target market.
  
• The increasing emphasis on sustainability and carbon neutrality is resulting in an increase in demand for energy-efficient lighting, across the globe. Lighting represents approximately 15–20% of total electricity consumed worldwide, making it an area that can yield substantial energy savings impacts in terms of energy use reduction and climate action.
  
• The light emitting diodes (LED) accounted for the largest share 43% in 2024 in the source segment. The growth is driven by increased adoption in residential, commercial, and industrial sectors, supported by low product prices with high efficiency, and stringent government energy regulations.
  
• The Asia Pacific region is the largest market, with a market share of 42% in 2024. Rapid urbanization, increasing commercial infrastructure development, supportive government energy-efficiency policies, is resulting in increasing adoption of LED and smart lighting solutions in countries like China, India, and Southeast Asia. Thus supporting the growth of energy efficient lighting industry in Asia Pacific.
  

Energy Efficient Lighting Market Trends

• Recent trend observed in the market is rise of IoT-enabled and smart lighting systems. Integration of lighting with sensors is expected to aid in predictive maintenance and dynamic dimming, supports smart building and smart city initiatives, and enhances energy savings. As smart lighting becomes a core component in urban infrastructure and industrial automation the trend is expected to witness long-term impact beyond 2034.
  
• Another trend witnessed in the market is adoption of human-centric and circadian lighting. Commercial and residential sectors are inclined towards adoption of tunable lighting systems that adjust color temperature and intensity to align with human biological rhythms. This is expected to improve occupant well-being, productivity, and mental health. As consumers focus towards better lifestyle is resulting in wellness becomes integral to building design standards the trend is expected to witness moderate impact till 2030.
  

Energy Efficient Lighting Market Analysis

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Based on source, the market is segmented into high-intensity discharge lamps (HID), linear fluorescent lamps (LFL), light emitting diodes (LED) and others.

• The light emitting diodes (LED) market was valued at USD 19.1 billion in 2024. The segment growth is attributed to LEDs superior energy efficiency, long lifespan, and declining costs. Also, increasing construction activities among residential and commercial spaces and strict regulations mandating pertaining to phase-outs of inefficient lighting is expected to support the segment growth.
  
• The segment is also expected to witness faster growth compared to other segments due to declining LED component cost and rise of smart homes, smart buildings, and city infrastructure. The rapid development of smart homes and smart building calls for intelligent lighting solution. LEDs integration with sensors and wireless control support features such as dimming, scheduling, motion detection, etc. which is attracting customers in residential spaces. Thus supporting the segment future growth.
  
• Manufacturers can focus on emerging sectors such as horticultural lighting, UV-C disinfection, marine and aviation lighting, and human-centric lighting (HCL) as they present more growth opportunities. Introduction of new advanced products will help them differentiate their products and attract new customers-further increase in the revenue.

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• The commercial segment was valued at USD 21.2 billion in 2024 and is projected to grow at a CAGR of 5.6%. Expansion in the commercial segment is due to the widespread acceptance and implementation of smart lighting systems for either efficiency-based controls in offices, retail spaces, hotels, and healthcare facilities. The deployment of smart office buildings, especially in North America and Europe, has proven to reduce costs of operation and energy usage, ultimately speeding up adoption by professional building owners, operators, and facility management professionals.
  
• Manufacturers should develop versatile smart lighting systems that are modular and scalable. Introduction of new products with features such as daylight harvesting, occupancy sensing, etc., combined with the ability to integrate with HVAC and security systems would be the ideal solution is expected to support the segment growth.
  
• The industrial segment accounts for USD 11.6 billion in 2024 and is the fastest-growing, with a CAGR of 6.4%. The industrial sector is expanding rapidly due to the increasing need for durable, durable, high-performance lighting in manufacturing plants, warehouses, logistics centers, and processing facilities. Industrial workplace environments require reliable lighting solutions to withstand very tough conditions, while minimizing energy use and maintenance downtime. This aspect is expected to support the segment growth.
  
• Manufacturers should capitalize on this opportunity by developing scalable and rugged lighting solutions capable of plug-and-play control, with remote monitoring capabilities and appearing to integrate with industrial automation systems, which will allow for their products to engage wider applicability for industrial applications through these diverse industrial environments.

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The North America energy efficient lighting market size was USD 10.2 billion in 2024. The market is growing due to smart building adoption, strict energy regulations, and government incentives for retrofitting and sustainability.

• The U.S. market, was valued at USD 8.95 billion in 2024. The market growth is primarily due to strict energy efficiency policies and strong uptake of smart LEDs in commercial buildings. Also, the commercial sector is well supported by federal and state initiatives such as the Department of Energy's Building Technologies Office, and Energy Star programs, which help the market mainstream sustainable building practices and large-scale retrofitting.
  
• Lighting solution providers need to further focus on new delivery methods and value-added services that include AI-based energy analytics software, advanced IoT-enabled lighting controls systems, and human-centric lighting design. Also, working more closely with real estate developers, technology firms and energy consultants will allow lighting providers the opportunity to offer future-ready and value-added lighting systems that meet changing building codes and environmental industry standards.
  
• Canada energy efficient lighting market is projected to grow steadily with a CAGR of 2.6%. The market growth is fuelled by increasing energy efficiency programs, and growing demand for green buildings. In addition, government initiatives, like the Canadian Net-Zero Emissions Accountability Act, are spurring on the adoption of LED across all sectors.
  
• For lighting manufacturer targeting Canada, it will be prudent to prioritize compliance with national energy codes, availability of bilingual product support, and collaboration with local utilities to access the incentivization system. Also, increasing green infrastructure projects will help to establish longer term growth in this market.
  

The Europe energy efficient lighting market transacted USD 8.4 billion in 2024. The growth of this market is supported by stringent EU regulations, growing emphasis on sustainability, and widespread public sector retrofitting.

• The Germany market was valued at USD 2.1 billion by 2024 due its strict regulatory pertaining to use of efficient lighting solutions. In addition, strong presence of well-established automotive and industrial manufacturers is expected to increase demand for strong advanced lighting solution that lower the operational efficiency.
  
• Lighting solution providers in Germany can align their products and services with German energy efficiency policy such as EnEV and BEG, and focus on establishing partnerships with municipal and industrial customers which will help them increase the product sales.
  
• Italy market is expected to witness faster growth of 4.8% CAGR. The market growth is attributed to country’s alignment with the Green Deal targets, which mandate reductions in energy consumption and greenhouse gas emissions. Also, modernization of Italy’s aging infrastructure is expected to increase demand for energy efficient lighting solution, Thus supporting the market growth.
  

The Asia Pacific energy efficient lighting market will be valued at USD 18.6 billion by 2024. Market growth influenced by rapid urbanization, large-scale infrastructure development, and strong government investment in energy-efficient and smart lighting systems across the region.

• China market was valued at USD 8.2 billion in 2024. The growth is bolstered by aggressive urban development, national policies promoting energy savings, and large-scale smart city and green building projects. Also, national targets such as the "Dual Carbon" initiative are expediting LED uptake across residential, commercial, and municipal sectors as part of its green infrastructure rollout.
  
• Lighting providers must meet energy standards set forth nationally and try to work with urban developers or surety-supported projects to secure high-volume for deployment and long-term project growth.
  
• Japan energy efficient lighting industry is projected to grow with a CAGR of 5.6%. The market growth is attributed to countries decarbonization targets, including carbon neutrality by 2050 and new emission reduction milestones through 2040. These are driving energy-efficient lighting adoption as a cost-effective and scalable strategy to lower GHG emissions and enhance energy security.
  
• Manufacturers that offer certified high-efficiency products, supported by localized compliance documentation, stand to gain from green building projects and commercial tenders.
  
• South Korea market was valued at USD 1.3 billion in 2024. The market growth is backed by government-supported sustainability efforts, accelerating smart city development, and a national movement focused on improving energy performance in buildings. The Ministry of Land, Infrastructure and Transport (MOLIT) and the Korea Energy Agency have implemented programs that are supporting the increase of LED adoption across public and commercial infrastructure.
  
• In order to maximize this growth trajectory, lighting manufacturers and providers should target IoT-integrated lighting solutions, comply with Korean green building codes, and partner with urban technologies development firms and government-supported initiatives to enhance their local presence.
  

The Latin America energy efficient lighting market is driven primarily by urban expansion, rising electricity costs, and national energy efficiency programs. Countries like Brazil and Mexico are investing heavily in smart public lighting, sustainable infrastructure, and LED retrofit projects to reduce emissions and energy consumption.

The Middle East and Africa (MEA) market was valued at USD 3.3 billion in 2024. Growth of the market is driven by national energy strategies, smart infrastructure upgrades, and growing public-private investment in sustainable lighting solutions.

• In 2024, Saudi Arabia energy efficient lighting industry was valued at USD 1.1 Billion. The growth of the Saudi Arabia market is propelled by the "Vision 2030" projects, the large urban development construction projects in the pipeline such as NEOM, and Government dictates for energy efficiency within buildings and infrastructure.
  
• Lighting suppliers have to show compliance with SASO energy standards, accommodate continuing smart city innovations, and need to create partnerships with local contractors and public procurement organizations in order to scale project implementations across metropolitan areas such as Riyadh and Jeddah.
  
• The UAE energy efficient lighting market is expected to grow steadily with a 3.6% CAGR. The growth is due to strong urban master plans for smart city developments like the Dubai 2040 Urban Master Plan, promising green building regulations, and an increase in large commercial developments are the primary drivers of demand. Other government programs like Estidama and Dubai Green Building Regulations are advancing in LED adoption.
  
• Lighting providers can stay competitive in the UAE energy-efficient lighting market by conforming to Emirates Authority for Standardization and Metrology (ESMA) standards, engaging smart lighting in larger infrastructure projects, and collaborating with real estate developers and municipal authorities to secure long-term contracts.
  
• The South African energy efficient lighting market was valued USD 733.9 million in 2024 due to strong demand for energy-efficient technologies in urban and industrial sector. Also government funding via Department of Mineral Resources and Energy are helping to fund LED upgrade retrofits and efficient lighting embedded in public infrastructure.
  
• Lighting suppliers can leverage this opportunity by providing cost-saving, grid-friendly lighting solutions for municipalities and businesses, while ensuring compliant with South African National Standards (SANS). Suppliers could explore partnerships with local governments and NGOs to provide off-grid and energy access programs throughout sub-Saharan Africa.
  

Energy Efficient Lighting Market Share

• The top 5 companies Schneider Electric SE, Eaton Corporation, Signify N.V., Acuity Brands, Inc., and OSRAM Licht AG (ams OSRAM) combine 85.7% of the market share in 2024, highlighting a moderately concentrated competitive structure driven by strong R&D investments, vertical integration, and strategic partnerships across smart infrastructure and sustainability projects.
  
• Schneider Electric SE. accounts for roughly 51.2% in 2024 due to its EcoStruxure, which seamlessly integrates lighting and energy management solutions, and has systems that are commonplace in smart buildings and industrial energy optimization.
  
• The Eaton Corporation has a market share of 17.1% in 2024 as it provides LED and connected lighting through Cooper Lighting Solutions, and Eaton's energy-efficient LED systems are designed to achieve commercial and industrial sustainability goals.
  
• Signify N.V has the share of the market at 9.5% in 2024, world's leading provider of smart and connected LED lighting and the Interact platform. Signify's primary focus is on the sustainability of lighting in cities, homes and businesses.
  
• Acuity Brands, Inc. is strongly positioned in the market at 5.9% of the total share in 2024. Acuity focuses on smart lighting and building automation systems, primarily in North America. Acuity Brands is one of the only companies offering energy-efficient, digital control systems along with a focus on user comfort.
  
• OSRAM Licht AG has a 1.1% share of the market in 2024. ams OSRAM offers several high-efficiency LED components, including smart lighting technology. ams OSRAM studies adaptive, sensor-based lighting applications focused on industrial and automotive use.
  
• Signify N.V. (Philips Lighting), OSRAM Licht AG (ams OSRAM), Acuity Brands, Inc., and Schneider Electric SE are considered leaders in the energy-efficient lighting market. These companies have a strong global footprint, broad portfolios across residential, commercial, and industrial sectors, and a high focus on R&D for intelligent lighting solutions (e.g., connected LEDs, smart controls). Signify and OSRAM are particularly dominant in LED innovation and smart lighting ecosystems, while Acuity Brands and Schneider have robust offerings in building energy management integrated with lighting systems.
  
• Samsung Electronics Co., Ltd., Legrand S.A., Eaton Corporation plc (Cooper Lighting Solutions), and Hubbell Incorporated are positioned as challengers. These firms have significant technological capabilities and a strong presence in certain regions or verticals but may not lead in terms of global lighting market share. Samsung leverages its semiconductor and display expertise to push high-efficiency LEDs, while Legrand and Eaton offer advanced control systems and commercial solutions that align with building efficiency trends.
  
• GE Current, a Daintree company, Panasonic Holdings Corporation, and Havells India Ltd. fall under the followers category. These companies maintain reliable portfolios in LED and energy-efficient lighting, particularly in regional markets (e.g., Havells in India, Panasonic in Asia). However, they are not at the forefront of global innovation or smart lighting adoption compared to leaders and challengers. Their growth is often region-centric and focused more on volume-driven strategies than breakthrough product leadership.
  
• Cree Lighting, Nichia Corporation, Dialight plc, and Zumtobel Group AG are categorized as niche players. These companies typically serve specialized segments e.g., Dialight in hazardous industrial lighting, Nichia in LED components, and Zumtobel in premium architectural lighting. While they possess strong technical expertise and innovation in specific product lines, their global market share remains limited, and they focus on selective markets or applications rather than a broad, integrated lighting portfolio.
  

Energy Efficient Lighting Market Companies

List of prominent players operating in the energy efficient lighting industry include:

• Acuity Brands, Inc.
• Cree Lighting
• Dialight plc
• Eaton Corporation plc (Cooper Lighting Solutions)
• GE Current, a Daintree company
• Havells India Ltd.
• Hubbell Incorporated
• Legrand S.A.
• Nichia Corporation
• OSRAM Licht AG (ams OSRAM)
• Panasonic Holdings Corporation
• Samsung Electronics Co., Ltd.
• Schneider Electric SE
• Signify N.V. (Philips Lighting)
• Zumtobel Group AG
  

Energy Efficient Lighting Industry News

• In May 2025, Orion Energy Systems, Inc. mentioned it is gaining solid traction with its LED lighting products in that Energy Service Companies (ESCOs) are adopting the products, as well as U.S. Government agencies are purchasing Orion's Buy American Act (BAA) Compliant LED lighting products.
  
• In March 2025, Bisleri International Pvt. Ltd. partnered with Schneider Electric’s Sustainability Business to enhance energy efficiency and expand the use of renewable energy. This initiative is a key step under ‘Bisleri’s Greener Promise’, reinforcing the company’s commitment to a sustainable future.
  

The energy efficient lighting market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue (USD Billion) and from 2021 – 2034 for the following segments:

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Market, By Source

• High-intensity discharge lamps (HID)
• Linear fluorescent lamps (LFL)
• Light emitting diodes (LED)
• Others

Market, By Application     

• Home
• Commercial
• Industrial

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

• North America 
  • U.S.
  • Canada 
• Europe
  • Germany
  • Uk
  • France
  • Spain
  • Italy
  • Netherlands 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE