LED Lighting Market size will grow significantly through 2027 with technological advancements and higher adoption from commercial and industrial sectors. Developments in light-emitting diode technology have enabled manufacturers to expand their footholds globally.
LED lighting products produce light with around 90% more efficiency and provide better service life as compared to incandescent light bulbs. Dipping prices of the lamps have made these products immensely popular. The emergence of smart lighting solutions is poised to fuel the LED lighting market value. LED products have become one of the most energy-efficient lighting technologies. Increased use of LEDs can save around 348 TWh of electricity by 2027 in the U.S., according to the US Department of Energy.
The directional nature and high-efficiency attributes of LEDs have made them apt for commercial and industrial applications, driving LED lighting industry trends. LEDs have become trendier in the parking garages, streetlights, walkways, modular lighting and other outdoor areas. Recessed downlights have become prevalent not only in residential settings but also in commercial spaces. Demand for panel lights, high bay lights, tunnel lights and troffer will surge drastically. Rising construction activities and burgeoning urbanization will provide lucrative opportunities across North America and Asia Pacific.
Consistent demand for sustainable and efficient lighting has driven the LED lighting market share from the LED lamps segment. Economies such as China and India will potentially spearhead the adoption of LED lamps with quieter and smoother dimming and enhanced color rendering. Improved construction output and recovering hospitality sectors could bolster Asia Pacific market trends post the novel coronavirus pandemic.
They have become popular in a myriad of designs and applications, including A-lamps, T-lamps and MR-16 lamps. Prominently, the application of LED downlights, LED panel lights, LED spotlights, LED track lights and LED shop lights has become compelling in commercial spaces.
Key vendors in the LED lighting market are Everlight Electronics, Mitsubishi, Cree, GE Lighting Solutions, GE, Philips, Toshiba, GYLED, Avances Luminicos Plus S.A. de, and Black Dog LED, among several others. These companies are gearing for strategic collaboration to boost their RoI and their industry share. They are tapping new regions with product innovations, product rollouts and mergers & acquisitions.
For instance, GE announced the sale of its lighting business to Savant Systems, Inc., on July 1, 2020. The acquisition marks a strategic move that will see GE Lighting, now a Savant company, invest and innovate in the lamp portfolio. LED chipmaker Epistar is investing around USD 179.28 million to produce mini-LEDs in Taiwan. The company is planning to set up automated mini-LED production lines at a plant in Taichung.
LED lighting industry share is poised to witness disruptions with coronavirus wracking havoc across the globe. A delay in the construction activities and a plunge in automotive sales dented the industry outlook in 2020 to some extent. The pandemic may have caused a slowdown in hospitality and commercial projects, leading reduced sales of LED lighting. Strong demand for LED bulbs in the healthcare sector will add impetus to LED lighting manufacturers.
Expansion of smart city projects and increasing preference for innovative and energy-efficient lighting solutions will be pronounced in the next few years. Tier 2 and Tier 3 companies are also expected to exhibit demand, preferably in industrial lighting and street lighting portfolios. A palpable dip in the initial installation cost of LED lamps and fixtures and bullish support from governments will encourage manufacturers to bolster the production capacities.