LED Lighting Market to Grow by USD 41.5 Billion (2024-2028), Boosted by Declining Manufacturing Costs, with AI Driving Market Transformation - Technavio

NEW YORK, Jan. 30, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global led lighting market size is estimated to grow by USD 41.5 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  8.08%  during the forecast period. Declining manufacturing cost of led lights is driving market growth, with a trend towards emergence of smart cities. However, limited thermal tolerance of leds installed in the industrial facilities  poses a challenge. Key market players include Acuity Brands Inc., ams OSRAM AG, Bridgelux Inc., Dialight Plc, Digital Lumens Inc., Eaton Corp. Plc, Ennostar Inc., General Electric Co., GrowRay Lighting Technologies, Hubbell Inc., IDEAL INDUSTRIES Inc., Koninklijke Philips N.V., LSI Industries Inc., Lumileds Holding BV, OSRAM Licht AG, Panasonic Holdings Corp., Sharp Corp., Signify NV, SMART Global Holdings Inc., and Toyoda Gosei Co. Ltd..

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Market Driver

The LED lighting market is experiencing significant growth due to its energy efficiency and environmental sustainability. LED technology is replacing traditional lighting sources like incandescent, CFL, and halogen lights in various applications. In the residential sector, LED lights are popular for indoor situations, while LED bulbs, tube lights, and strips are preferred for outdoor applications. LED lighting is also used in horticulture, smart city initiatives, and building automation systems. LED manufacturers offer a range of products, including LED lamps, luminaires, and smart LED lighting. Wi-Fi, occupancy sensors, and daylighting are common features in LED products. LED lighting systems are longer-lasting and energy-saving solutions for public institutions, construction sites, and the medical device sector. LED lighting is used in surgical illumination, exam lights, phototherapy, and endoscopy. The wholesale segment and luminaire product segment are major contributors to the market. LED lighting systems are also used in outdoor applications such as street lighting, highways, airports, and public areas. LED lighting is a network-connectivity-enabled, smart lighting solution that offers strong illumination and design flexibility. LED lighting systems are also used in track lighting, high bays, troffers, and various other categories like floor lamps, architectural LED lamps, and cabinet lights. The automotive sector is another significant market for LED lighting. LED lighting is an energy-saving solution for consumers, offering product certification, consumer safety, and energy use reduction. 

The Led Lighting Market is experiencing growth due to government initiatives aimed at energy conservation and city development. Smart lighting systems, a crucial element of constructing smart cities, offer energy savings, quicker switching times, and cost reduction. These systems are not only energy-efficient but also provide practical benefits to city residents, such as real-time traffic information and updates on public spaces. Innovative lighting solutions in street lights include automatic brightness adjustment, remote control, fault alerts, anti-theft protection, and monitoring of power cables. These features contribute significantly to the energy efficiency of cities and enhance the overall quality of life for citizens. 

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 Market Challenges

• The LED lighting market is experiencing significant growth due to its energy efficiency and environmental sustainability benefits compared to traditional lighting sources like incandescent, CFL, and halogen lights. LED technology is becoming the go-to solution for indoor applications such as residential lighting and retail spaces, as well as outdoor applications like horticulture, street lighting, and construction sites. LED manufacturers are constantly innovating with products like LED strips, bulbs, tube lights, and luminaires for various segments including wholesale and building automation systems. Challenges in the market include common open standards, smart city initiatives, and network connectivity through Wi-Fi and occupancy sensors. LED lighting systems are being integrated into smart lighting solutions for energy saving and consumer safety. In the medical device sector, LED products are used for surgical illumination, exam lights, phototherapy, endoscopy, and more. The longer lifespan of LED luminaires is also a major advantage for industries like construction and upgrading projects. The LED lamp category includes track lighting, high bays, troffers, and street lighting, making it a versatile solution for various industries. The residential sector and indoor segment are major markets for LED lighting systems, with conventional lights like high intensity discharge and fluorescent bulb substitutes being phased out. Public institutions and outdoor markets like highways, airports, and public areas are also adopting LED lighting systems for their energy saving benefits. Light Fidelity and smart LED lighting are the future of lighting technology, offering network connectivity and design flexibility for architectural and automotive applications.
• LED lighting, while offering energy efficiency benefits compared to traditional incandescent lamps, faces challenges in commercial and industrial applications due to environmental conditions. High temperatures, moisture, and hazardous environments can negatively impact LED performance and lifespan. LED lamps and fixtures connected to external drivers are particularly susceptible to high operating temperatures, which can lead to premature failure. Industrial facilities and manufacturing plants, with their elevated temperatures, can cause internal temperatures of LED drivers to exceed safe operating limits, adversely affecting LED light output and lifespan.

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Segment Overview 

This led lighting market report extensively covers market segmentation by  

1. Application 
• 1.1 Residential
• 1.2 Commercial
• 1.3 Outdoor
• 1.4 Industrial
• 1.5 Others
2. Product 
• 2.1 Luminaries
• 2.2 Lamps
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Residential-  The residential segment led the global LED lighting market in 2023, driven by urbanization and the demand for energy-efficient solutions. The increase in urban population fuels the adoption of LED lighting systems for home decoration. Governments offer subsidies to stimulate local manufacturing, lowering prices and boosting sales. Smart cities and smart homes also contribute to market growth, with cities like Los Angeles, New York, and Chicago adopting LED lighting due to its lower Cox emissions. These factors collectively drive the expansion of the residential segment in the global LED lighting market.

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Research Analysis

The LED lighting market is experiencing significant growth due to the energy efficiency and environmental sustainability benefits of LED technology. LED lights provide strong illumination while consuming less energy input compared to traditional lighting sources like incandescent, CFL, and halogen lights. This makes LED lighting an ideal choice for various applications, including indoor situations such as residential lighting and retail environments, as well as outdoor applications. LED manufacturers offer a wide range of LED products, including LED bulbs, tube lights, strips, and Wi-Fi enabled LED lights with occupancy sensors and daylighting capabilities. These advanced features enhance energy savings and provide optimal lighting conditions. LED technology is revolutionizing the lighting industry and is expected to continue its dominance in the market.

Market Research Overview

The LED lighting market is experiencing significant growth due to its energy efficiency and environmental sustainability benefits. LED technology is replacing traditional lighting sources such as incandescent, CFL, and halogen lights in various applications. In indoor situations, LED lighting is used for residential lighting, retail lighting, and horticulture, while in outdoor applications, it is used for street lighting, construction sites, and smart city initiatives. LED products include LED bulbs, tube lights, strips, lamps, and luminaires, which are common open standards compatible with building automation systems. Wi-Fi, occupancy sensors, and daylighting are also integrated into smart LED lighting systems. LED manufacturers offer a wide range of LED lighting portfolio, catering to the wholesale segment and various industries such as medical, construction, and public institutions. The longer lifespan and energy-saving solutions offered by LED lighting systems make them a preferred choice for consumers, designers, and product certification bodies. The market includes various product categories like track lighting, high bays, troffers, and street lighting, among others. The residential sector and indoor segment are major markets for LED lighting, with the outdoor market showing significant growth in areas like highways, airports, public areas, exhibitions, museums, and galleries. The automotive sector is also adopting smart lighting solutions for better safety and design. LED lighting systems are also used in the medical device sector for surgical illumination, exam lights, phototherapy, endoscopy, and medical workers' safety. The market is expected to continue growing as more conventional lights are upgraded to LED lighting systems. Light Fidelity, a new network connectivity technology, is expected to further enhance the capabilities of LED lighting systems.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Residential
• Commercial
• Outdoor
• Industrial
• Others
• Product
• Luminaries
• Lamps
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio