Industrial Lighting Market size is likely to experience a dynamic growth between 2021 and 2027 due to the growing rate of industrialization worldwide and the need for energy efficient lighting solutions. Many industries are upgrading their lighting infrastructure to achieve better productivity, energy optimization, cost-effectiveness, and industrial safety.
Industrial lighting solutions are particularly designed for manufacturing environments which require ample illumination and energy efficiency at the same time. Besides illuminating the facility, lighting systems assist workers in spotting unsafe conditions.
Industrial lighting industry share from factory and production lines segment is estimated to grow at a significant CAGR between 2021 and 2027. From production to machining, a variety of operations are conducted in factories. Lighting solutions need to be customized to meet requirements such as space availability and complexity of the operation. Rapid industrial development, particularly in emerging countries, will augment the demand for industrial lighting solutions.
Europe is expected to be lucrative region for the industrial lighting market growth through 2027, led by ambitious net-zero carbon emissions goals set forth by the European Union. The region has been focusing on shifting to low-energy LED solutions in recent years. Back in 2018, the U.K. had started phasing out sales of halogen bulbs under EU regulations. Active efforts are being made to completely replace fluorescent lightbulbs by 2023. Similar efforts in other countries will boost energy efficient industrial lighting demand across the European region.
Industrial lighting industry is comprised of notable manufacturers including Siemens, GE Lighting, Signify (formerly Philips Lighting), USHIO America, Inc., Crompton Greaves Ltd., Acuity Brands Lighting, Inc., Litetronics International, Inc., Havells India Ltd, and OSRAM Gmbh, among others. Manufacturers are implementing advanced manufacturing technologies such as 3D printing to develop next-generation lighting solutions for industrial environments. Companies are also looking to expand into developing markets such as Asia Pacific to strengthen their market presence.
For instance, in March 2021, Signify had introduced new 3D printed luminaires in India for industrial and commercial settings. 3D printing serves as a more sustainable and flexible manufacturing approach with a 47% lesser carbon footprint compared to traditionally manufactured lighting. The company had also opened a new 3D printing facility and an R&D center in India. The expansion is a crucial part of Signify’s commitment as part of its Brighter Lives, Better World 2025 program launched in September 2020.
The coronavirus pandemic has had considerable impact on industrial lighting demand as major manufacturing facilities were forced to shut down temporarily. Government measures to curb the spread of the virus led to reduced or zero production across numerous industries, resulting in a weakened demand for new lighting solutions. Retrofit installation, in particular, witnessed a significant decline as retrofitting is dependent on the life cycle on the lighting infrastructure rather than industrial activity. In addition, roadblocks in logistics and supply chains created numerous challenges for manufacturers.
Nonetheless, the industrial lighting market is well set for recovery, with government restrictions being gradually lifted across the world. Long term goals to promote sustainability and circularity in the industrial sector will bring promising growth opportunities for the market.