LED Services Market size is projected to record remarkable gains from 2023 to 2032 driven by the growing demand for energy-efficient lighting solutions.
With the increasing concerns associated with the burgeoning electricity demand across the globe, consumers are focusing on sustainable solutions to limit energy consumption as well as emissions. Thus, the popularity of LED bulbs has significantly soared as they help users save up to 90% of energy when compared to incandescent solutions. The stark rise in the energy prices post the COVID-19 outbreak and the Russia-Ukraine war are further propelling the need for energy-efficient technologies. According to the World Bank, the energy price index witnessed 26.3% hike between January and April 2022, following 50% growth between January 2020 and December 2021.
However, the Russia-Ukraine war had notable impact on the LED services market with unprecedented supply chain disruptions, inflation, and the soaring commodity prices. Post this invasion, several economies imposed strict sanctions on Russia, ceasing trade of oil and gas, thus compelling numerous nations to achieve energy independence and resilience. This scenario along with the growing efforts to achieve net zero emissions will spur the need for LED services over the projected timeframe.
The increasing governments support will also favor the industry expansion with the implementation of incentives and rebates, encouraging the public to replace conventional lighting equipment with LED lamps, thus offering lucrative business prospects for the industry players. Furthermore, the increasing number of smart city projects will foster the demand for LED lighting.
Based on product, the market share from LED fixtures is anticipated to witness an upsurge over 2032. This is owing to their longer lifespan and availability in an array of sizes, shapes, and designs. The growing residential and commercial lighting requirements driven by rapid urbanization and robust infrastructure development initiatives will also help consolidate the demand for LED fixtures.
With respect to application, the residential segment is expected to contribute to massive remuneration for the LED services market by 2032. The growing usage of residential LEDs can be accredited to their ability to save up to 75% of energy whilst ensuring 25 times greater shelf-life than luminous lighting. As per the Department of Energy (DOE), LED technology is set to dominate the space of lighting with projected energy savings of 569 TWh by 2035.
Regionally, North America LED services market size is poised to amass sizeable growth through 2032led by the surging demand for residential, commercial, and industrial lighting. Several central and state governments are supporting the need for energy transition with the launch of new incentives and loans for infrastructure retrofitting. The increasing adoption of energy-efficient technologies will also anchor the industry expansion.
Some of the major players operating in the global LED services market include Osram GmbH (ams), LEDVANCE GmbH (MLS Co), Philips Lighting Holdings B.V., Endo Lighting Corp., Global Light LLC, OPPLE Lighting Co., Thorlux Lighting. These firms are expanding their product portfolios with the development of newer and advanced technologies.