LED Services Market

LED Services Market Size

The global LED services market generated significant revenue in 2024 and is estimated to grow at a notable CAGR during 2025-2034 driven by the convergence of environmental issues, government regulations, and innovations in technology related to energy-efficient lighting technologies. Growth in the market is mainly driven by the fast replacement of legacy lighting systems. LED-based lighting is more energy-efficient than traditional technologies. It also lasts longer and helps reduce carbon emissions.

These benefits make LEDs a preferred choice over older lighting methods. Additionally, the increasing urbanization across the globe, growing fondness for smart infrastructure and smart city technology, and increasing regulatory mandates around energy consumption have allowed for further acceptance and use of LED-based systems. As per UN.org, currently, 55% of the global population resides in urban areas, and this share is projected to rise to 68% by 2050.

Policies aimed at phasing out incandescent bulbs and encouraging the use of LED-based lighting in both commercial and residential uses are seen in countries throughout the world through government incentive programs. Organizations are also increasingly looking for by-the-finished-product service offerings or integrated offerings of lighting service which is the turnkey installation, maintenance, retrofitting, or consultation of a lighting solution. Moreover, the development of common LED applications (e.g., street lighting) with smart lighting controls, and the continued embrace of the Internet of Things (IoT) throughout a wide range of applications related to lighting has made new market opportunities available for LED services.

LED Services Market Trends

The market is now changing through a multitude of transformational trends influencing its nature and trajectory. Of all the trends occurring, the most discernible and impactful is the growing acceptance of smart LED lighting systems mobile to IoT technologies. Smart LED systems will facilitate remote controls, energy usage, and automated occupancy or natural light-activated lighting solutions and have implications for smart homes, smart office environments, and smart public space lighting. With a growing digital connection proliferating in daily life, service providers combine smart LED systems with software platforms and data analytics to provide predictive planning, maintenance, and performance tracking in a systematic manner.

The other noted trending phenomenon influencing LED services is retrofitting services. It seems especially applicable in the commercial and industrial sectors where less energy-efficient existing lighting systems have been replaced with new options of LED lighting. Retrofitting energy usage reduction systems are offering better quality, safe workspace light quality. Rising environmental consciousness with many organizations maintaining green certifications, reduces carbon footprints fueling market growth.

LED Services Market Analysis

LED fixtures segment held the largest share in 2024 and is projected to grow at a CAGR during 2025-2034. LED Fixtures, encompassing complete lighting units that include ceiling lights, wall mounts, floodlights, panel lights, and more, have huge importance in modern-day lighting applications. LED fixtures are used for texture, composition, and color lighting, which improve the energy performance and lifespan of traditional lighting systems. The rising demand for LED fixtures is attributable to the rising urban development, the upgrading of existing commercial buildings, and the increase of modernizing infrastructure from government projects.

In commercial and industrial settings, the flexibility of different LED fixtures has arisen out of the need to meet compliance around lighting levels, reduction on energy expenditure, or use LEDs to enhance sustainability. Furthermore, LED fixtures can have a high lumen output, long device life, or clever design. The difference from traditional fixtures can be more considerable when deployed in multiple indoor and outdoor applications with different needs.  

Given the LED services market opportunities, service providers are offering value-added bundles that include design consultation, customized installation, and ongoing maintenance through continuous connection enabling performance corrections on fixtures over time.

These developments also allow for smart lighting systems with enhanced theatre and design on top of motion detection, daylight harvesting or dimming controls, and wireless controls. These advancements have improved manageability and reporting capabilities around energy and others, as companies innovate their designs with respect to their growing return on conservation strategies.

The LED services market from the residential applications segment held the largest share in 2024 with a notable CAGR through 2034. With the public buy-in and understanding of energy efficiency, falling LED prices, and many good and easy-to-use light sources, acceptance of LEDs in residential applications has made quick adoption. Homeowners have quickly transitioned away from incandescent and compact fluorescent lamp (CFL) lighting sources, opting for LED lighting systems that not only save money, but will last longer, and provide better overall lighting.

Because of the large-scale transition to LED from incandescent and CFL systems, LED service providers have responded by providing customized lighting packages (with consultation, design, installation, and follow-up service support). In addition, the retrofitting of existing older homes or apartment complexes/blocks has become commonplace as residents want to save on their electricity bills while improving the overall look of their lighting.  

Also, in the last several years, the idea of a smart house has incorporated itself into residential lighting, where many consumers are purchasing LED lighting systems that are controlled by their smart mobile applications or voice assistants. Home automation and lighting control with platforms such as Amazon Alexa, Google Assistant, and Apple HomeKit have facilitated ease of use for manipulating brightness levels.

North America LED services market is expected to maintain robust growth through 2034. Several factors contributed to the region's success, for example, the greater awareness about energy conservation, regulatory support, and the comprehensiveness of enabling infrastructure to introduce superior lighting technologies. The United States has embraced a partnership for introducing LED services in urban and rural locations often driven by the Energy Star program.

Similar initiatives at the city level aimed at sustainability, with state and federal mandates and incentive programs to support energy-efficient lighting in public venues state interests in public venues, including commercial public properties for transportation and residential properties. North America's commercial buildings, shopping malls, and educational and healthcare institutions are increasingly investigating LED services for retrofitting existing systems and considering intelligent lighting services. The presence of leading LED manufacturers and service providers has established competition whereby lighting services are affordable and there is more technological awareness and innovation along with customer access to affordable complete lighting options.

LED Services Market Share

Key players involved in the LED services industry include:

• OPPLE Lighting Co.
• Global Light LLC
• Philips Lighting Holdings B.V.
• LEDVANCE GmbH (MLS Co)
• Thorlux Lighting
• Endo Lighting Corp.
• Osram GmbH (AMS)
  

To strengthen their market position, companies in the LED services sector have adopted a range of strategic approaches. Many are expanding their service portfolios to include end-to-end solutions—from consultation and design to installation and ongoing maintenance. Strategic partnerships with construction firms, smart city planners, and utility providers have enabled firms to access large-scale infrastructure projects.

Companies are also investing in R&D to enhance fixture design, energy efficiency, and smart control capabilities. Some players are acquiring regional service providers to increase geographic reach and customer base. In addition, competitive pricing, rebate facilitation, and value-added services such as warranty extensions and remote support are being used to differentiate offerings. These strategies collectively aim to improve customer satisfaction, reduce operating costs, and secure long-term service contracts.

LED Services Industry News

• In October 2023, Halonix Technologies launched India’s first ‘UP-DOWN GLOW’ LED Bulb, offering dual-color lighting from both the dome and stem. The bulb featured three switch-enabled modes to let users create different lighting effects in their rooms.
  
• In March 2025, In March 2025, Signify Holding entered a joint venture with Dixon Technologies (India) Ltd., for regulatory approval. The collaboration manufactured high-quality lighting products and accessories for leading brands in India’s competitive market. The venture focused on producing a diverse range of innovative and affordable lighting solutions—such as LED bulbs, battens, downlights, spotlights, rope lights, strips, and other LED accessories—entirely within India.