LED Lighting Market - By Type (Lamps, Luminaires, Others), By End-use (Commercial, Residential, Industrial, Agricultural Lighting, Others) By Application (Indoor, Outdoor) & Forecast, 2024 - 2032

LED Lighting Market Size

LED Lighting Market was valued at over USD 45.5 billion in 2023 and is estimated to register a CAGR of over 7.2% between 2024 & 2032.
 

The increasing demand for energy-efficient lighting solutions. As concerns about climate change and energy consumption rise, governments, businesses, and consumers are increasingly shifting towards LED lighting to reduce electricity usage and carbon emissions. LED lighting offers significant energy savings compared to traditional lighting technologies, such as incandescent and fluorescent bulbs, making it an attractive option for both residential and commercial applications. Furthermore, technological advancements in LED technology have led to improvements in efficiency, lifespan, and color rendering, enhancing the appeal of LED lighting solutions. Manufacturers continuously innovate to develop LED products with higher efficacy, better performance, and lower costs, further driving market growth.
 

Government initiatives and regulations promoting energy efficiency also play a crucial role in driving the LED lighting market. Many countries have implemented policies such as energy efficiency standards, lighting rebate programs, and bans on inefficient lighting technologies to incentivize the adoption of LED lighting. Moreover, the expanding scope of applications for LED lighting, including outdoor lighting, automotive lighting, and horticultural lighting, provides additional growth opportunities for the market. The versatility and adaptability of LED technology make it suitable for a wide range of applications, driving demand across various industries. In September 2023, Signify, the owner of the Philips Hue brand announced the global launch of its Philips Smart LED bulbs. The new portfolio is the result of Signify's 2019 acquisition of Wiz, and it is distinguished from Hue products by the "Wiz Connected" badge on its blue box.
 

Price competition leading to margin erosion occurs when companies in the LED lighting industry engage in aggressive pricing strategies to gain market share or remain competitive. In an increasingly saturated market with numerous players, companies may lower their prices to attract customers, resulting in a downward pressure on prices across the industry. This intense price competition can lead to margin erosion as companies sacrifice profit margins in exchange for sales volume. Lower prices may reduce the profitability of LED lighting products, impacting the financial performance of manufacturers, distributors, and retailers within the supply chain.
 

LED Lighting Market Trends

Smart lighting technology continues to gain momentum, with increasing integration of LED lighting systems with IoT (Internet of Things) platforms and wireless connectivity. This trend enables remote control, automation, and customization of lighting settings, enhancing energy efficiency, convenience, and user experience. Smart lighting solutions offer features such as dimming control, color changing options, motion sensing, and integration with smart home ecosystems, driving adoption in residential, commercial, and industrial sectors.
 

 Smart lighting technology continues to gain momentum, with increasing integration of LED lighting systems with IoT (Internet of Things) platforms and wireless connectivity. This trend enables remote control, automation, and customization of lighting settings, enhancing energy efficiency, convenience, and user experience. Smart lighting solutions offer features such as dimming control, color changing options, motion sensing, and integration with smart home ecosystems, driving adoption in residential, commercial, and industrial sectors. In May 2023, Osram announced the release of the OSLON Optimum family of LEDs in May 2022. These LEDs are based on the most recent ams Osram 1mm2 chip and are designed for horticulture lighting. They offer an exceptional combination of high efficiency, dependable performance, and great value.
 

LED Lighting Market Analysis

Based on type, the market is divided lamps, luminaires, and others. The luminaires segment is expected to register a CAGR of over 8% during the forecast period.
 

• lamps encompass a variety of light sources ranging from bulbs and tubes to spotlights and panels, each designed for specific applications and environments. LED bulbs serve as direct replacements for traditional incandescent bulbs, offering energy efficiency and versatility for residential and commercial spaces.
   
•  LED tubes retrofit fluorescent fixtures with long-lasting and efficient lighting solutions. Spotlights and downlights provide directional illumination for accenting features or task lighting, while panels and troffers offer uniform ambient lighting in indoor environments such as offices and schools. Additionally, LED streetlights and outdoor luminaires provide durable and energy-efficient solutions for roadway and outdoor area lighting, highlighting the diverse applications and segments within the market.
   

Based on end-use, the market is divided into commercial, residential, industrial, agricultural lighting, and others. The residential segment dominated the global market with a share of over 27% in 2023.
 

• In the residential segment of the LED lighting market, there is a growing demand for energy-efficient and cost-effective lighting solutions. LED lighting products tailored for residential use include LED bulbs, fixtures, and smart lighting systems. These products offer benefits such as long lifespan, reduced energy consumption, and customizable lighting options.
   
•  LED bulbs are popular replacements for traditional incandescent and fluorescent bulbs, providing bright and uniform illumination while consuming less electricity. Additionally, smart lighting systems allow homeowners to control their lighting remotely, adjust brightness levels, and even change colors to suit different moods or activities. The residential segment represents a significant portion of the market as consumers increasingly prioritize energy efficiency, aesthetics, and convenience in their homes.
   

Asia Pacific dominated the global LED Lighting market in 2023, accounting for a share of over 37%. The market in the Asia Pacific region has experienced robust growth driven by several factors. Rapid urbanization, industrialization, and infrastructure development in countries like China, India, and Southeast Asian nations have fueled the demand for lighting solutions across various sectors. Government initiatives promoting energy efficiency and sustainability have further accelerated the adoption of LED lighting technology. The Asia Pacific region is home to some of the world's largest LED lighting manufacturers, contributing to the availability of a wide range of LED products catering to diverse applications. These applications include residential lighting, commercial lighting, outdoor lighting, automotive lighting, and industrial lighting. Technological advancements, coupled with decreasing costs of LED lighting products, have made them more accessible to consumers and businesses in the Asia Pacific region. Moreover, the shift towards smart lighting solutions, driven by advancements in IoT (Internet of Things) technology, is further driving market growth, particularly in urban areas.
 

LED Lighting Market Share

Acuity Brands, Inc. and Cree Lighting USA LLC are two prominent players in the LED lighting industry holding a significant share of 20%, each contributing significantly to the industry's development and growth. Acuity Brands, Inc. is a leading provider of lighting and building management solutions, offering a wide range of LED lighting products for various applications including commercial, industrial, residential, and outdoor lighting. The company's extensive portfolio includes luminaires, lighting controls, and advanced lighting systems designed to enhance energy efficiency, comfort, and productivity in indoor and outdoor spaces. Acuity Brands' innovative approach to lighting design and technology has earned it a strong reputation in the market, with a focus on delivering high-quality, sustainable lighting solutions tailored to customer needs.
 

Some of the major players in the market are Acuity Brands, Inc. Cree Lighting USA LLC Panasonic Corporation SAVANT TECHNOLOGIES LLC Seoul Semiconductor Co., Ltd. Signify Holding Siteco GmbH. These major players applying strategies like product innovations and mergers and acquisitions. Also, companies are involved in several growth and expansion strategies to gain a competitive advantage in the market.
 

LED Lighting Market Companies

Major players operating in the industry are:

• Acuity Brands, Inc.
• Cree Lighting USA LLC
• Panasonic Corporation
• SAVANT TECHNOLOGIES LLC
• Seoul Semiconductor Co., Ltd.
• Signify Holding
• Siteco GmbH
   

LED Lighting Industry News

• In May 2023: Cyclone Lighting, a well-known manufacturer of outdoor luminaires of Acuity brand announced the debut of its Elencia luminaire. Outdoor post-top lighting has an upscale look thanks to high-performance optics and revised, modern lantern style.
   

The LED lighting market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Type

• Lamps
• Luminaires
• Others

Market, By End-use

• Commercial  
• Residential   
• Industrial     
• Agricultural Lighting
• Others

Market, By Application

• Indoor
• Outdoor

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

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA