The global LED services market is slated to record considerable growth from 2021 to 2027, driven by the rising need for energy efficient and cost-effective lighting solutions and systems for a diverse range of applications. Besides, the increasing deployment of LED lighting due to longer lifespan is poised to further bolster the market dynamics during the forecast timeline.
Various central and state governments are now offering incentives and rebates on the replacement of conventional lamps with LED products, enabling the adoption of LED products globally. In addition, smart city schemes by different federal governments to reduce the power demand and energy consumption is further likely to offer impetus to LED services market growth through 2027. For instance, in July 2021, the City of Vaughan, Canada, announced deploying Telensa’s PLANet intelligent street lighting system under the LED streetlight retrofit program. The company was required to replace Vaughan’s 23,000 streetlights, which consumed approximately 20% of the City’s overall consumption, with energy-efficient LEDs combined with wireless controls by Telensa.
Integration of LED lighting with latest technologies including wireless communication and the availability of IoT-enabled LED lighting would provide lucrative growth opportunities for the LED services market in the coming years.
Based on the product type, LED fixtures segment would accrue significant gains during the forecast period, owing to the products’ long lifespan, and availability in wide array of shapes, sizes, and styles. Various consumers in the residential and commercial spaces are looking forward to installing new fixtures given its greater design customization and lighting options. These factors are anticipated to generate demand for LED services, thus propelling market expansion.
LED products are touted to have a significant impact on the residential segment. Residential LEDs make use of at least 75% less energy, and last up to 25 times longer than luminous lighting. Benefits associated with LED deployment in homes, including reduced energy use, durable construction, long shelf life, and more, would augment the market growth across the residential sector. Reportedly, expansive use of LED lighting has a large potential impact on energy savings in the United States. According to Department of Energy, by 2035, the majority of lighting installations are projected to use LED technology, and energy savings from LED lighting could reach 569 TWh annually by 2035 end.
North America LED services market would register considerable growth over 2021-2027, led by the residential, commercial, and industrial consumers’ intrinsic need for energy efficient lighting solutions. Various state governments have been introducing policies and programs to encourage the use of energy effective products. For example, Alabama’s Local Government Energy Loan Program offers zero-interest loans to universities and public schools for energy efficiency improvements projects that will pay back in utility savings. Furthermore, introduction to smart city projects would further enhance the market demand in the region.
Philips Lighting Holdings B.V., LEDVANCE GmbH (MLS Co), Osram GmbH (ams), OPPLE Lighting Co., Global Light LLC, Endo Lighting Corp., Thorlux Lighting, and others are some of the prominent leaders operating in the global market.
These vendors have been engaged in different marketing strategies like mergers and acquisitions, product developments, and collaborations, to consolidate their position globally.
The global outbreak of coronavirus pandemic has had a severe impact on the overall market during 2020. This can be reasoned to the disruption in supply chain and movement restriction. Besides, decline in the product demand further produced a downfall in the sales of LEDs across commercial and industrial sectors due to the shutdown in companies operating in these spaces. However, the work from home trend during the previous year had escalated the need for residential lighting for reduced energy consumption producing a surge in the demand for these services.