LED Lamp Market Analysis

LED Lamp Market Analysis

The demand for general-purpose lighting is anticipated to witness a surge over the forecast timeline. Decorative LED lamp market use cases are primarily residential spaces for lighting up gardens, pools, fountains, and statues. They are also used for functional applications consisting of building facades and landscaping. Rising consumer inclination towards energy-efficient lighting systems is projected to augment the general-purpose LED lamp market share over the forecast timeline. The general-purpose bulbs are evolving as a replacement for conventional lighting systems, further escalating demand.
 

Lighting accounts for a considerable percentage of the overall power consumption. LEDs consume lesser energy as compared to other lighting technologies. Despite higher purchase costs than incandescent bulbs, they require less operational costs, owing to reduced energy consumption and high durability. As a result, governments of various countries have supported the adoption of this technology through incentives, banning incandescent lights, and other awareness programs.
 

LED lamps are used to provide the same aesthetics delivered by the traditional incandescent bulbs accompanied by the energy saving capabilities, which propel its demand in the residential space. They are dimmable and available in different color temperatures. These bulbs are widely adopted across various commercial spaces, such as healthcare, retail, and hospitality, to deliver enhanced illumination capabilities and offer direction to the end users. The LED lamp market price trend is on the decline. This reduction is a result of reducing prices of chips, major components of these bulbs. Increasing competition led to an oversupply in 2012; this resulted in a decrease in the average selling cost. These lamps have quickly gained adoption by replacing alternatives such as electrical discharge, filament, and halogen lamps. They are used for commercial and residential purposes in both indoor and outdoor uses.
 

Startups in the LED lamp market have increasingly started to distribute their residential and commercial bulbs and luminaires to consumers bypassing traditional distribution channels. The direct marketing channels, such as e-commerce, are rapidly gaining acceptance than whole selling as bulbs and ballasts can easily be stocked and ordered.
 

The automation of the manufacturing process has reduced the input costs of developing light sources, playing a significant role in decreasing the overall cost. Government regulations in countries such as Canada and the U.S. are major factors influencing the reduction in LED lamp market pricing. The U.S. has initiated a ban on the usage of ineffective lighting and rebates to reduce the energy use.
 

Europe LED lamp market share accounted for over 25% of the revenue in 2016. Modernization in the Europe region has increased the demand for smart homes and smart lighting options. The operational costs and long product life cycle of energy-efficient lighting are key reasons inducing the growth in this region. The European Commission has set requirements for energy-efficient solutions in residential, industrial, and public areas.